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What exactly is a CFO? |
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At what point should I think about hiring a CFO/Controller? |
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What is the difference between accounting and finance? |
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Can Small Biz CFO also do my bookkeeping and taxes? |
What exactly is a CFO?
CFO is an acronym that stands for Chief Financial Officer – an executive-level corporate role
in larger companies where the Controller and Treasurer report to the CFO.
A small business CFO essentially encompasses both Controller and Treasurer responsibilities. By necessity, in addition to having strong accounting and finance skills, a small business CFO has experience in corporate level administration and operations including production, purchasing, human resources, facilities, contracting, negotiations, etc.
CFO can also stand for Corporate Finance and Operations - because finance doesn’t operate in a vacuum. It's an integral part of every business operation regardless of size, because every business transaction has a financial implication.
At what point should I think about hiring a CFO/Controller? To help you determine when the time is right, ask yourself these simple questions…
- Do you have a budget or a financial business plan? Do you know how to get started?
- Do you have a good handle on both revenue and expenses?
- Do you know if specific product lines, geographic locations or distribution channels are profitable? Are you spending too much in certain areas?
- Do you get all the accurate, timely and relevant management reports you need to run your business?
- Do you have operational metrics to indicate whether you’re on track?
- Do you review and understand your financial statements? Do you find them useful?
- Do you have in-house expertise to do higher-level analytical work?
- Does your staff give you an objective, unbiased perspective or help you think strategically?
- Do you have cash flow problems because you don’t know how much money you need to pay bills, or when?
- Do you know how to manage cash, inventory, receivables and payables?
- Do you sometimes feel like you’re flying by the seat of the pants? If so, does it keep you up at night?
Most companies find they need a CFO/Controller when their operation reaches a certain level of complexity – whether it’s due to the numbers of employees, contractors, product lines, suppliers, vendors, geographic locations, etc. Others want to take advantage of opportunities to grow the business and realize they don’t have the necessary financial expertise on board to help them get there.
The right time to bring in a CFO/Controller will vary from company to company since no two companies, even in the same industry, are grappling with exactly the same financial and operational issues.
Finally, most small businesses either don't need or can't afford a full-time CFO/Controller on staff. Contracting with a Consultant can be a cost-effective way to get the specific services you need, when you need them.
What
is the difference between accounting and finance?
Accounting generates historical information that is
simply the starting point for modeling a wide variety of potential, future
business outcomes. It's important to know where you are before you can figure out where you're going. Having accurate and timely financial and accounting information always facilitates making better management decisions.
Finance takes accounting information to the next level. While a CFO fully understands accounting and accounting systems, s/he also has the ability to take a more forward look at your business through budgeting, planning, projecting, forecasting, etc. - all toward helping you plan for 'profitable' growth or sustainability.
Can Small Biz
CFO also do my bookkeeping and taxes?
Bookkeeping: Yes, we have qualified and trained bookkeeping staff we can provide on a part-time, interim or project basis. Whether you're just starting out or already in business, we can get your books set up properly, process your business transactions, do account and bank reconciliations, and generate relevant financial statements. We can customize our services to fit your needs.
QuickBooks is the general accounting software that we typically recommend and we are proficient in its usage. We also have experience with other standard accounting software.
Small Biz CFO will also help recruit, hire and train your own permanent bookkeeping and accounting staff.
Taxes: No, because we are not tax professionals. Because
of the complexity of ever-changing tax laws, we recommend that you engage an experienced Tax CPA or Tax Agent to provide tax planning and tax return preparation. Our goal is simply to ensure that your books are ready and in good shape for them to prepare your tax returns. Small Biz CFO values your relationship with your CPA and strives to maintain good communication.
Audit or Review: Small Biz CFO will help you to prepare for a review or audit by your CPA firm.
“When a former employee left, Priscilla was very helpful in sorting things out while getting a new hire fully trained and up to speed. During a frustrating and uncertain time when I was not sure what problems we might find, or how it would impact the numbers, I found her calm demeanor, and the perspective she gave on other businesses, to be very reassuring. I appreciated that! Sometimes, it's not only what we do but how we do it. I was truly pleased with the results.”
Wendy Simmons, President, Prism Consulting, Inc.
CFO/Controller Services
Financial Accounting
Management Accounting
Business Plans
Budget Preparation
Financial Statements
Financial Analysis
Cost Analysis
Cash Flow Projections
Financial Modeling
Banking & Loan Relations
Dashboard Metrics
Corporate Governance
Financial Training
Financial Oversight
Due Diligence Assistance
Bookkeeping Services
Transaction Processing
Bank Reconciliation
