Introduction

One of the serious issues with small business owners and a few startups is the notion that they can do everything on their own. It is understandable that at the pilot stages of a business, especially with limited capital, the founder(s) may be expected to perform a wide range of roles within an establishment. However, irrespective of the size of a venture, handling the more professional roles without appropriate training might turn out to be a disaster, even if it appears as if the business is doing well. Some of these roles include company secretary or lawyer, tax consultant, accountant, etc. Getting the strategy wrong with these “professional” roles may result in loss of revenue, regulatory fines, waste of resources, mismanagement, fraud, etc.

Savvy businesspersons learn swiftly that accounting and finances are the essence of the business and deserve professional management from financial experts. A business owner might decide to handle the responsibilities of finance and accounting, but as a business develops, entrepreneurs discover that hiring professionals generates solid cost-value benefits while freeing owners to concentrate on core business matters.

Now that you know, or you knew all along, that a CFO can make a substantial difference to the overall profitability and success of your small to medium business, you might be wondering if CFOs are only for big multinational corporations at the fancy end of town, but that may be far from the truth-CFOs can help every business

So how does a CFO help my business?

Taking your SME business to the next level of growth is a unique challenge that benefits those who are better equipped with the right team and the right set of skills. The financial side of your organisation is no exception.

The role of a CFO is that of a strategic partner and advisor. The CFO keeps a company on solid footing and moving forward. They are responsible for overseeing the business’s financial activities and operations, establishing performance measures, and understanding the drivers of cash flow, as well as longer-term requirements, such as assessing potential opportunities and financial risks.

CFOs work beyond just the finance function by taking part in business decisions and promoting the optimal commercial interests of the business. CFOs not only assess the costs of doing business but also the risks and threats that may arise from strategic decisions. The CFO measures, monitors, and improves on critical financial matters.

Why Should I Hire a CFO?

In today’s highly dynamic, digital, and ultra-competitive environment, small-to-medium businesses and startups need a CFO now more than ever.

As operations begin to grow, your financial situation becomes far more complex, and the requirements become more demanding. A CFO’s services can keep your business running and save you stress. More benefits of hiring a CFO will be highlighted in a later article.

Key Takeaway

Whatever stage you are at in your business, whether you’re just starting out or rapidly growing, you should always assess the accounting and financial status, what your needs are, and where you need to be going. Entrepreneurs are usually under pressure to save money and be more efficient with expenses, but budgeting to spend some money on great finance and accounting experts can help in both areas.

Smaller businesses may not have the capacity to hire a CFO as part of their staffing requirements, but this role can be outsourced to get the financial expertise that your business needs at a reduced cost.

In summary, even if you cannot afford to have a full-time finance expert on board, it is important to at least connect with one to develop your finance strategy and check with them regularly to ensure that the strategy is on track.

Do you own a small business or startup and have no idea how to set your accounting and finance direction? Do you need help with monitoring your business’s finances? Or any other issue regarding accounting and finance in your business? Reach out to us today or leave a comment below. We will do our best to get back to you as soon as possible.