When you think of a chief financial officer (CFO), who comes to mind? A man or woman in a business suit with a serious expression on their face? The fact of the matter is a CFO can wear many hats (and faces), but most have a few defining characteristics.
Beyond Basics Accounting Resources near Nashville offers outsourced CFO services tailored to your needs. Whether you need help budgeting or a sounding board and financial analysis, we can help. We understand that many small businesses don’t have the resources to hire a full-time CFO. By partnering with us for outsourced accounting services, you can have the best of both worlds. Below, we’ll go over some of the defining characteristics in CFOs for your company. Contact us today to get started!
CHARACTERISTICS OF A CFO
Vision & Foresight
Beyond Basics Accounting Resources near Nashville believes these two characteristics belong together. A great CFO has vision and foresight to not only help determine where the company should go, but also to help foresee where the market is headed and gain a competitive advantage. This is also being able to see the big picture of where the company is headed and implementing the financial plans to get there. While this is also the role of the CEO, the CFO ultimately determines if the financial infrastructure is in place in order to reach the vision of the company. For example, it’s all well and good to say you want to purchase another company to help your business grow; however, if you don’t have the capital, this vision won’t take place.
Understanding Financial Analysis and Rules
While having vision and foresight is important in a CFO, the ultimate job of a CFO is optimizing the financial performance of your small business, which is done through having a clear knowledge of the rules of accounting, government regulations regarding small businesses, and balancing out finances and accounting, such as debt, liabilities, assets, and equity. Furthermore, being able to work a spreadsheet is a basic skill; being able to tell you what the numbers on the spreadsheet mean is a whole other matter. A CFO is ultimately responsible for the solvency of your small business; this is not to be taken lightly.
Integrity & Candor
Doing what’s right is so important in today’s economy with cut-throat competition, especially when it’s easy to cut corners and skirt the law. Your CFO should be your source of internal conscience, meaning someone who will stick to your vision and mission while being unafraid to tell you how it is. This role usually falls to the CFO since they often are the gatekeepers of the money. Furthermore, the utmost integrity is not only important in business dealings, but it’s also important to avoid IRS audits or any other scandals that could be the financial ruin of your company and all of your hard work.
Communication & Leadership Skills
Communication and leadership skills can be overused terms that many dismiss as meaningless. After all, everyone can claim they can communicate and be a leader. However, those who truly have the necessary skills will stand head and shoulders above the rest. Think of famous businessmen throughout history that you remember, such as Lee Iacocca and Henry Ford versus those whom you can’t remember at all. Communicating with everyone in the company and leading the company, especially in the rough times, are vital skills every CFO needs to possess.
PARTNERING WITH BEYOND BASICS ACCOUNTING RESOURCES
CFOs play such a vital role in a small business that if you are lacking one, you should consider hiring either a permanent one or outsourcing one from a company such as Beyond Basics Accounting Resources in Mt. Juliet. Our services are tailored to fit your small business’s needs. We can be your sounding board as well as your moral compass. Having an outside perspective can be invaluable as well, especially when you are intimately involved in every aspect of the business. You could be blinded to the big picture with the excitement of the little things.
Our mission is to help you fill the gaps you are missing in your small business. Whether you need bookkeeping services, consulting, or a temporary CFO, we can help. Contact Beyond Basics Accounting Resources near Nashville today!