Financial management, financial analysis, and anything that has to do with money can cause a lot of nerves to rattle and cold sweat to form – especially if we’re talking about tens of thousands of dollars to 7-figure sums.
Let’s say your business has had a good run of 2-3 years and you’re now facing an opportunity to expand into other marketplaces – how do you know, in terms of financials, whether it’s a good time to expand or not? A bookkeeper records your cash flow, and an accountant shows you where you’re profitable – but both of them do not have the skills to help you analyze the numbers and guide you in your financial decision-making. Only a Chief Financial Officer or CFO can help you there.
Before we go any further, remember that hiring a CFO is not for every business. If you’re a startup that’s just learning the ropes and not quite ready to scale yet – an accountant and a bookkeeper should suffice in the meantime. A CFO consultation works best once your business begins picking up and you start moving sums of about $50K and up. Remember the rattling nerves and beads of cold sweat? CFOs don’t worry about that – they are used to managing large volumes of money – more importantly, that’s when they perform the best.
So – what can a CFO do for you exactly? Think about them as your business’s financial advisors. They are there to give you recommendations on where to best put your money to help your business scale faster and with less risk. They can help you understand why one investment is better than another. They can help you forecast timelines that will show you the right time to scale.
Don’t get us wrong – the major money decisions are still yours to make – but with a CFO perhaps you can quiet the nerves and trust the process a little better. And if you need a little more convincing – we got Sam Hill of eCom CFO who explains everything a CFO does in today’s Seller Round Table discussion with Amy. Watch the video below:
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