Many business owners reach a point where managing the financial side of the enterprise becomes overwhelming. This is most likely a good thing, meaning the company is seeing growth and may be at a point where simple bookkeeping and basic financial reporting isn’t enough to manage future opportunities, risk, and planning.
If this scenario is you, it may be time to consider adding a CFO or controller to your team. However, before you do, you need to consider whether your payroll can take on these generally high-paying positions and understand exactly what you will get in return.
General duties
A CFO or controller looks beyond day-to-day financial management and their job goes beyond merely compiling financial data. Their involvement is broad and includes:
- Integrated, big-picture planning of financial and operational goals,
- A seat at the table with your executive leadership team,
- Serving as your go-to person for all matters related to your company’s finances and operations,
- Interpreting the data to explain how financial decisions will impact all areas of your business,
- Planning for capital acquisition strategies, so your company has access to financing, as needed, to meet working capital and operating expenses.
A CFO or controller should also serve as the primary contact between your company and your bank to ensure your financial statements meet requirements for loans negotiation or other financing issues. Analyzing possible merger, acquisition and other expansion opportunities also falls within a CFO’s or controller’s purview.
Specific responsibilities
A CFO or controller typically has a set of core responsibilities that connect to the financial oversight of your operation, including ensuring there are adequate internal controls in place to help safeguard the business from internal fraud and embezzlement.
Additionally, this position should:
- Be able to implement improved cash management processes that will boost your cash flow, and improve budgeting and cash forecasting,
- Analyze the tax and cash flow implications of different capital acquisition strategies — for example, leasing vs. buying equipment and real estate, and
- Be able to perform ratio analysis and compare the financial performance of your business to benchmarks established by similar-size companies in the same geographic area.
Big commitment
Hiring a full-time CFO or controller is a major commitment in both time to hire the right person as well as expense to your payroll. CFO and controller positions typically command sizable high salaries and attractive benefits packages.
Start with outsourcing
If you aren’t sure you need a full time person, where to start, or don’t have the time to put into hiring someone soon, you can start with outsourcing the position. Dalby Wendland provides virtual CFO and controller services via our Client Accounting Services group.
No matter which route you choose, our firm can help you assess the financial impact of the idea. Give us a call:
Grand Junction 970-243-1921
Glenwood Springs 970-945-8575
Montrose 970-249-7701
