What is a CFO (and Why Do You Need One)

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There is a common misconception that a CFO is just a glorified CPA or bookkeeper. This couldn't be further from the truth.

A CPA or a controller acts as the Company’s historian, reporting on how the Company has performed—a good CFO is forward looking and strategic, helping the Company avoid pitfalls. They are strategists planning the future growth of the company based on careful analysis of the company's finances and market projections.  They work hand in hand with the CEO or owner to develop long-term growth and leadership.

Even if you’re uncertain, it’s worth having an initial sit-down meeting with a CFO to discuss the financials and discuss future goals and needs.

A CPA or a controller acts as the Company’s historian, reporting on how the Company has performed—a good CFO is forward looking and strategic, helping the Company avoid pitfalls. They are strategists planning the future growth of the company based on careful analysis of the company's finances and market projections.  They work hand in hand with the CEO or owner to develop long-term growth and leadership.

• Develop and implement financial strategies to support the company

• Create financial forecasts, budgets, and projections to guide decision-making and predict future financial performance.

• Oversee and optimize the company's cash flow to ensure sufficient liquidity for operations and growth.

• Identify and mitigate financial risks, ensuring the organization's financial stability and compliance.

• Oversee the accurate creation and analysis of financial statements to comply with accounting standards and regulations.

• Develop and manage strategies for raising capital, as well as overseeing investment activities.

• Manage relationships with investors, lenders, banks, and other external partners.

• Lead and manage teams of financial professionals, fostering a motivated and engaged financial department.

Good CFOs have years of experience growing and developing businesses, but they expect to be paid commensurate with their experience. You get what you pay for. While many small businesses can't afford a full-time qualified CFO, they are the ones who could most benefit from having someone in their corner.

What if you could get all of the benefits of a qualified CFO without the cost?

Fractional CFOs (or fractional versions of any of the C-Suite) have become very popular in recent years. A fractional CFO provides all of the advice and functions of a full-time CFO, but because they work with your business to meet your specific needs, they are hired on a part-time basis, and you gain help where you most need it.

Blue Sky pairs businesses with fractional CFOs to set up ongoing financial support, services, and strategy. Even if you’re uncertain, it’s worth having an initial sit-down meeting with a CFO to discuss the financials and discuss future goals and needs. After the initial meeting, the CFO may make recommendations regarding the need for a Controller, or other full-time finance officer. Once you have agreed to the terms of hire, they will review your books and make further suggestions and start to advise next steps.

Reach out to Blue Sky today!