The CFO'S Perspective

Large, established companies usually have a full-time Chief Financial Officer (CFO) as an integral member of their executive team. Your business might not be in a position yet to add a CFO to your executive suite. Or you might be ready but finding just the right person takes time. Perhaps you’re not quite sure what to expect from a CFO, and you need to learn more about what they do before hiring one.

If you're a business owner or CEO, you need some kind of financial guidance. Maybe you create addicting video games for smartphones, run a local real estate agency, or are a health services provider. No matter what your trade involves, being in business can be a challenge.

But unless you run a CPA firm, you probably didn't go into business to stare at numbers and comply with financial regulations. These are often perceived as a pain, but they are a necessary piece of any successful endeavor. Hopefully, you already have some help in this regard.

Unfortunately, hiring financial help is often either an afterthought or a hastily made decision, and you don't get the guidance you need and deserve. Even worse, your business meanders down the wrong path and ends up being just another scary statistic.

A successful business needs not only financial assistance but also guidance that is effective. On the one hand, you might just have the wrong accountant in your corner, but there's also a chance that your company needs something more.

In the early days of your business, you might have managed your books single handedly or hired an outside accountant to take a peek at regular intervals. As you scale and grow your business, your financial management needs expand as well.

One of the keys to success in just about any sector is strong financial planning and management. This requires taking more than just a backward glance at what just happened during the past month, quarter, or year.

While a full-time bookkeeper can give you some of the controls you require, the truth is that you will need to dedicate more resources to the sound financial management of your business. So, just what is financial management, and where do you begin?

Here are some common questions and answers about key financial processes as they relate to your business.

Change comes more from managing the journey than from announcing the destination.”  -  William Bridges

Change can be hard to navigate under the best of circumstances. When things aren't right within the financial arena, it can unknowingly create a delicate situation. CEOs should tread lightly, and yet, must still be effective leaders.

The inclination of many CEOs is to assume that because financial teams tend to be more analytical than, for instance, a marketing team, they can make changes without understanding the potential ramifications. This may not be the case. Here are some best practices for navigating change in your financial waters.

On November 15, 2018 CAMPS (Center for Advanced Manufacturing Puget Sound) celebrated the successes and achievements in manufacturing in the Puget Sound region.  Regence, Capital Benefit Services and Shannon & Associates sponsored the fabulous event. The emcee for the evening was Randy Gardiner, President of CAMPS Board of Directors.

Members of the CFO Selections team were in attendance. We were again impressed by the character and expertise of the attendees and those recognized with awards (both past and present). CAMPS continues to stand out as a valuable organization we recommend.

This is an important event because it recognizes companies and people who are remarkable and often go unnoticed. Their commitment is not a headline in a tweet or newsfeed. 

The thought of needing to hire a CFO often doesn't come before there is some sign of trouble. Most companies try to operate using the “bank account formula” for as long as possible and then make a change only when the pain becomes too great. “Let me look at my bank account… if I have money, I must be OK!”

Fortunately, this no longer a black and white choice. The most successful businesses are built on a collaborative foundation, and a growing number of companies are embracing the concept of hiring a part-time CFO. Instead of being just a sunk operating cost, this move is now widely viewed as a smart business investment that is delivering positive returns.

Top business owners and CEOs know that having a well-run finance department is vital to their company's success. Being able to process and analyze payments coming in and going out is paramount. Likewise, your company's financial team should keep you in compliance with regulations, such as tax laws, and help drive some of the strategic decisions for your business.

But, what is the right size and make-up of a financial team relative to the scale of your business operations? If you are a start-up or small business, should you have a CFO? If you don't, who will handle these essential financial functions? At what point should you start scaling up your financial team. The answers to the questions could have an impact on the success or failure of your business.

The Chief Financial Officer (CFO) position is an important component in the success of any company. A capable CFO takes the time to understand the financial operations of his/her own company, as well as the company’s position in the industry. That knowledge informs vital strategic financial decisions that are often the primary drivers of business growth.

However, the costs associated with a CFO role typically put it out of the reach of many small businesses and startups. Some companies choose to forgo a CFO altogether, opting to let the head of the business make the financial decisions with the help of a CPA, accountant, or other less experienced financial professional. Much like taking a road trip without turn-by-turn GPS directions, this route may result in poor financial management that leads the company astray.