Her CFO Tips: The Role of a Chief Financial Officer and 5 Benefits They Bring
Updated: Aug 18, 2021
As business owners, we carry all the stress and pressure of running the business on our shoulders. As a result, we tend to want to handle everything by ourselves. But running a business doesn’t work that way. You won’t be able to carry out your responsibilities properly if you’re stretched too thin. This is where you can benefit from examining the merits that the role of a chief financial officer can bring.
It’s important to know that the role of a chief financial officer or CFO isn’t only to look at your numbers. A modern CFO can help you reimagine your business above and beyond financial management. And so, we talk about five crucial tips on how a CFO can reimagine your business finances and align them with your purpose. We discuss the role of a chief financial officer and how founders can benefit from hiring one. Learning these things will allow you to become a better leader and make your business flourish for years to come.
If you want to know why you should hire a modern CFO for your business, then tune in to this episode!
Here are three reasons why you should listen to the full episode:
Understand the role of a chief financial officer.
Learn crucial tips on hiring the benefits of having a modern CFO as a trusted advisor.
Find out the areas and aspects beyond financial management that a CFO can examine.
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[01:50] What is the Role of a Chief Financial Officer?
A modern CFO is someone who can help founders reimagine their business finances and align them with their purpose. They look at the business objectively as an outsider and create a judgment-free zone around your financial results. Because of this, modern CFOs can help founders focus and enhance business ideas and long-term strategy. They can bring everything together in a financial forecast that you can trust and understand.
However, it’s understandable that cash can be tight at the beginning. So hiring a CFO may not be a feasible choice. Hiring a full-time CFO would depend on the stage of your business. Often, you only need a part-time CFO working 3 to 4 hours a week or month.
[03:16] Tip #1: A CFO Presents an Independent Viewpoint
It can be hard to look at the company objectively when you have been running a business for several years. That’s where the role of a chief financial officer comes in. They examine your business with a fresh set of eyes.
This independent viewpoint, along with the financial data, can help you step outside the day-to-day operation and reimagine the business. This is helpful when you’re looking for new opportunities or improvements within the current operation of your business.
[03:55] Tip #2: A CFO Spots Critical Issues in the Business Operation
Most business operation issues are non-financial but they have financial implications. A CFO can help you spot the flaw in your business operation and the areas you need to work on. This allows you to overcome them and move forward in the right direction.
[04:28] Tip #3: A CFO Provides a Business Plan and Strategy Aligned with Why You Founded the Business
Some businesses can run fine without a business plan at the beginning. However, you will need a business plan and financial model when scaling up. You can learn the benefits of proper business planning with a CFO. And together, you can work on a robust plan that works best for the future of your company.
The right CFO is someone who understands you want to grow the business—not at all costs, but a growth that matters to your soul. A business plan that doesn’t align with your soul won’t create a meaningful profit.
[05:30] Tip #4: A CFO Assists with Setting Goals and Targets
You cannot create a workable business plan without outlining the business's critical financial and non-financial goals. A CFO helps narrow down goals, set apt targets, and create more drive and momentum in the business. It’s easier to understand your business purpose and measure overall performance with a clear set of targets.
[06:14] Tip #5: A CFO Brings Everything Together into Financial Results You Can Understand
A CFO creates financial results you can understand and trust. Having a CFO gets you ready for receiving funding externally or creating your own capital internally. They create a clear roadmap on how you can make your purpose profitable.
[06:51] The Benefits of Having a Trusted Chief Financial Officer
Taking care of your mental health and wellbeing is beneficial for both you and the business. You can be a better leader, decision-maker, and founder when you’re less stressed. You can share your worries and ambitions to make you feel less alone when you have a trusted advisor. And this trusted advisor comes in the form of a CFO who can help you manage your business finances.
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