If you’re like most entrepreneurs, your business began as a vision. You refined your vision, ambitiously studied your market, targeted your customers, developed a plan, and through grit and determination turned your vision into a reality. Now your business is up and running and probably growing faster than you thought possible.
If you have cash in the bank, you can avoid failing as a business. Poor planning is one reason companies run out of money. Forecasting your company’s cash flow is critical to maintaining positive cash flow—changes in variables, timing, and risky assumptions can cause inaccuracies.
A Chief Financial Officer or CFO is a senior executive in your finance department that is responsible for managing your financial decisions of a business. As a business owner, you are possibly at the crossroads of deciding when to hire a CFO. Let’s start with understanding the jobs and duties required of a CFO, and then determine at what point your business is financially ready to hire a CFO.
Sometimes as a business owner you can get so busy trading out different hats, that you might not stop to consider if that hats fit anymore. One day you’re wearing a “Training” hat, and the next day you’re wearing a “Research” hat, and by the end of the day, you have to switch into your “Payroll” hat. Outsourcing your accounting allows you to wear the hat(s) that fit you best.