Would a CFO help your small business?

  • Yes

    Votes: 1 33.3%
  • No

    Votes: 2 66.7%

  • Total voters
    3

CFOtoGrow

Member
Joined
Nov 23, 2021
Messages
1
Personally speaking, and I'm a bit biased since I am an Outsource CFO, I think every company could benefit from such a service. With that said, it's very important to pick the right Outsource CFO.

Here are two scenarios that I have came across in my career.

1. CPA Firm Offering CFO Services
I have came across a lot of companies that hired their CPAs (doing taxes) as their CFO and ended up regretting it. This is no bash against the CPA, but to be a CFO requires a different way of thinking. By nature, a CPA is trained to be historically oriented with taxes and audits. Wherein, a CFO is focus on the present to the future - cash flow, strategic deployment of capital, growth, etc

2. Not the Right Fit
A few of my clients have came across CFOs who just aren't the right fit - personality, thinking, expertise, and so on. Again, this isn't a bash on either party, but picking the right CFO is just as important as having the right one. For example, if I come across a client that likes to shoot from the hips, take calculated risk, and move at lightspeed - that's a pretty good mesh for my style. Since I'm more methodical and detail orientated, we compliment each other really well.

But if I come across a client who doesn't want to be involved in the business, doesn't want to take risk, and/or otherwise isn't a good fit. I just don't take them as clients.

With all of this said, if you find the right CFO partner - it can absolutely take your business to the next level
 

Hudsonpalmer

Member
Joined
Aug 20, 2021
Messages
6
Personally speaking, and I'm a bit biased since I am an Outsource CFO, I think every company could benefit from such a service. With that said, it's very important to pick the right Outsource CFO.

Here are two scenarios that I have came across in my career.

1. CPA Firm Offering CFO Services
I have came across a lot of companies that hired their CPAs (doing taxes) as their CFO and ended up regretting it. This is no bash against the CPA, but to be a CFO requires a different way of thinking. By nature, a CPA is trained to be historically oriented with taxes and audits. Wherein, a CFO is focus on the present to the future - cash flow, strategic deployment of capital, growth, etc

2. Not the Right Fit
A few of my clients have came across CFOs who just aren't the right fit - personality, thinking, expertise, and so on. Again, this isn't a bash on either party, but picking the right CFO is just as important as having the right one. For example, if I come across a client that likes to shoot from the hips, take calculated risk, and move at lightspeed - that's a pretty good mesh for my style. Since I'm more methodical and detail orientated, we compliment each other really well.

But if I come across a client who doesn't want to be involved in the business, doesn't want to take risk, and/or otherwise isn't a good fit. I just don't take them as clients.

With all of this said, if you find the right CFO partner - it can absolutely take your business to the next level

That is such a great answer.

Thanks for sharing!
 

PatrickM

Member
Joined
Feb 24, 2019
Messages
34
1. CPA Firm Offering CFO Services
I have came across a lot of companies that hired their CPAs (doing taxes) as their CFO and ended up regretting it. This is no bash against the CPA, but to be a CFO requires a different way of thinking. By nature, a CPA is trained to be historically oriented with taxes and audits. Wherein, a CFO is focus on the present to the future - cash flow, strategic deployment of capital, growth, etc

With all of this said, if you find the right CFO partner - it can absolutely take your business to the next level
Fully agree. Many SMB owners think that having a bookkeeping/accounting system and an external accountant covers all the business financial requirements.

This thinking leaves a big financial management operations gap. A gap that can be the difference between success and failure.
 

VirtualGlobalPhone

Moderator
Top Poster Of Month
Joined
Apr 22, 2016
Messages
1,247
Hudsonpalmer , A small company can either hire a position called CFO or depend on.

Instead a founder who can handle all the finance related will be a good fit.

Remember Title or position called CEO / CFO all comes up with Huge cost and expectation - small business cant afford that.

Hope this help you.
 

Hudsonpalmer

Member
Joined
Aug 20, 2021
Messages
6
Hudsonpalmer , A small company can either hire a position called CFO or depend on.

Instead a founder who can handle all the finance related will be a good fit.

Remember Title or position called CEO / CFO all comes up with Huge cost and expectation - small business cant afford that.

Hope this help you.

What about a Fractional CFO? I don’t disagree that some small companies can’t afford a full-time CFO. Asking the founder to run the business plus handle the finances is not always a recipe for success.
 

PatrickM

Member
Joined
Feb 24, 2019
Messages
34
Remember Title or position called CEO / CFO all comes up with Huge cost and expectation - small business cant afford that.

Most, if not all, SMB's cannot afford and do not need a full-time CFO - they are too expensive and would be too underutilized.
However, any small business can, and should, outsource this skill on a regular part-time basis. This will make sure that the business fully utilises its financial capability ... with relevant accountability.
 

VirtualGlobalPhone

Moderator
Top Poster Of Month
Joined
Apr 22, 2016
Messages
1,247
PatrickM , Hudsonpalmer

Once can think of outsource if they know A to Z of work.

Most of the small and SMB will be juggling through the Trust, Risk, knowledge , experience etc .....

Unless they are fully trained and in a country where everything is already defined and transparent in terms of finance [ Invest --> sale--> Tax --> Expenses --> Profit ] .
 
Top Bottom