To make the most informed decision regarding when to hire a CFO, you should first understand what a CFO does. A great CFO provides confidence in decisions. By understanding the numbers and developing meaningful metrics, a CFO helps the organization see opportunities and protect against unnecessary risks. A CFO does not manage the day-to-day accounting activities of the business. However, he or she has a clear understanding of accounting processes and typically oversees the company controller. For example, the following are some of the activities that VantageCFO performs as part of our part-time CFO program:
A CFO should compile and analyze data in order to aid the CEO in making important business decisions in a timely manner. Other responsibilities of a CFO might include establishing credit policies for clients, managing cash flow and overhead expenses, working with vendors to establish the most cost-effective terms, and preventing fraudulent activities within the organization. A CFO might also be needed to maintain or develop respect from shareholders, banks, suppliers or government regulators in order to ensure compliance with financial regulations, raise capital and secure credit.