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
Joined
Apr 22, 2016
Messages
1,256
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
Joined
Apr 22, 2016
Messages
1,256
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 ] .
 
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