Here are the TOP 5 Deadly Sins you commit when you fail to hire a CFO that your business needs.
- Not Getting Financial Information or Reports When You Need Them. Since all major business decisions are contingent on numbers, it’s important to have someone around who can answer those questions quickly and provide you relevant financial reports and information when you need it. A CFO, not a Controller or Outside CPA, is trained to provide you this information.
- Your Financial Reports are Late or Inaccurate. You have to have timely and accurate financial info to operate your business and make correct decisions. You must close your books timely and accurately, typically within 15-30 days of month end. A CFO can lead this deliverable.
- Cash Flow or Finances are Out of Control. If you’re not confident that your team is on top of billing customers, collecting and applying customer payments, paying invoices, or keeping records updated, then your accounting department is not functionally properly. You need a CFO to lead the clean-up of your books and implementing processes that streamline your accounting and financial reporting. Only by being on top of your books can you manage your cash flow.
- No Financial Strategy. You need to improve your financial strategy. A CFO brings a level of strategy, insight, and execution for which small or inexperienced financial teams may not be qualified. CFOs have a wide range of industry, operations, and corporate finance experience. They focus on future cash flow more than historical data, and are experts in long-range operational planning and making sure every arm of the company is performing sustainably at peak performance.
- Poor or Lack of Financial Projections, Forecasting and Budgeting. You can’t “manage what you can’t measure.” If you don’t have timely and accurate projections, forecasting and budgeting, then you have no plan or target of where you want your business to go. One of a CFO’s most important tools is the long-term forecast. A financial forecast goes down to the detail to determine where money should be spent, where money should be coming from, and when. This forecast will guide budgeting, fundraising, sales, marketing, purchasing, and operations.
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