According to the Wall Street Journal, 60-80% of business owners don’t know what their financial statements are telling them. I know what you’re thinking. “That’s not me.”
The CFO, the Chief Financial Officer, is entrusted with the financial reporting of the company, and since everything that happens in a company flows down to the financial statements, he/she is also consulted in nearly every business decision that is made in the company, from operations to administration to sales and marketing.
The role of the CFO is important to any business, whether they have $1 million or $50 million in revenue. When most effective, the Chief Financial Officer serves as a Business Partner, a Trusted Advisor, and confidant to the owner or President of any business. This doesn’t change if the role is part-time or full-time.
An entrepreneur is an idea person. Their company is the result of the ideas that they have built one upon the other since the company started. Some of those ideas were key to the company’s success. Some were best left in the file drawer. But ideas develop when they are spoken about, explored, dissected, and expanded upon. Who is the person in your organization that you have confidence in, who will hold your thoughts and ideas private? Who has the breadth of experience in business operations to merge the concepts and elements behind the idea? Who can manage the finance, legal, operations, HR and banking issues that will impact whether those ideas should be developed now, in a year, or strategically sometime in the future?
And, critically, it is the financial reports that the owner depends upon to make the decisions that run the company. The creation of inventory plans, pricing strategies, the analysis of trends, margins, customer results, effective use of manpower, all depends on how easy it is to understand the financial results and how accurately they are reported.
It takes more than just printing the numbers on a page. It is the analysis of those numbers that will allow you to make the decisions that keep you ahead of the competition, warn you of the upcoming cash crunch, smooth the relationship with your bank, tell you how efficiently your plant is operating, and find ways of saving you money.
CFO Simplified takes the complexity out of decision making by ensuring that you have the accurate information that you need to make the right decisions for your business, and a trusted advisor with whom to discuss those plans and decisions.
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