It’s hard enough running a business as it is, let alone trying to decipher complicated financial statements and making sense of profit & loss sheets. Hiring a CFO might be just the thing your business needs in order to maximize its earnings potential. CFO stands for “Chief Financial Officer” and this is the individual who is delegated of managing the financial side of a business. CFO’s usually have obtained degrees in accounting, finance or business management and in many cases may have a MBA. A CFO plays a key role within a company and has a lot of input in regards to a company’s strategic planning. Many CFO’s have excellent leadership skills since they often manage professionals and in some cases even teams. The CFO often works very closely with the CEO and as a result it is very important that these key individuals have a good rapport.

The Chief Financial Officer is at the head of the accounting department and generally oversees the accountant and controller. A CFO’s duties may include of developing and analyzing the yearly budget, implementing complicated accounting and financial systems, drafting business plans, determining optimal capital structure, developing cash flow forecasts and balance sheets, analyzing financial data in-depth, building relationships with funding sources such as banks, identifying of equity for business expansion, exit planning consulting and giving advice to the Chief Executive Officer.

The majority of new and small businesses do not have a CFO on staff. General bookkeeping duties are usually dealt with by the owner or a clerical worker. As a business makes more money there may be financial questions and accounting issues which will require the expertise of a CFO. A CFO can also be very useful if a company is offering an IPO or is involved with mergers and acquisitions and can also assist with complicated audits.

Business start-ups usually do not have the capital funds to shell out a six figure salary for a full-time CFO and will instead choose to utilize interim CFO services or a temporary CFO. This allows small business owners and entrepreneurs to utilize the skills and services of an experienced financial executive on a part-time or hourly basis without having to shell out a hefty salary. Outsourcing this position to the right individual can really help take a business to the next level.

The CFO has the capability and knowledge to make sense of complex financial data in order to maximize profits and to make the necessary strategic and key decisions to take a company to the next level. A good competent Chief Financial Officer can optimize your cash flow and accelerate your business’ expansion. It makes sense business wise to hire a financial expert to concentrate on these matters while you focus on negotiating new deals, landing bigger clients and overseeing the business. Having a knowledgeable and seasoned team of experts behind you is key in ensuring success for your business in today’s competitive market.

Author Bio: Written by Jacqueline Star: CFO Services, California CFO, Interim CFO Services

Category: Business
Keywords: What is a CFO, What does a CFO Do, CFO responsibilities, CFO job duties