A lot of times when I tell my prospective clients (or even family members for that matter!) that I’m a CFO, I get a blank stare.
Chief Financial Officer, I clarify.
Still a blank stare.
Today I am breaking down all of the financial professionals in your business and what they do for you. I’ll show you how a CFO is the missing piece to your arsenal of numbers people.
Bookkeeper. Your bookkeeper manages the daily transactions in your business. She enters your bills, invoices your clients, reconciles your bank accounts, and makes sure the true numbers are accurate and booked to the correct categories. They often come with lots of experience in a particular software like Quickbooks Online.
Accountant. This is your tax guru. Your bookkeeper often sends the monthly financials to your accountant who reviews your tax strategy, tells you how much to pay the IRS, and files your taxes. They are often a CPA. In nonprofit organizations, they may be your auditor or the one who files your 990.
Financial advisor. Your advisor advises you on how and where to invest your money, whether personal or business. Have a question on whether your money should go in a 401(k) or an IRA or what the return is on an index fund or a bond fund? Your financial advisor is your go-to gal and often a Certified Financial Planner (CFP) – just make sure she is a fiduciary.
But what about when you have a question on your business financials? Like, can I afford to make a big investment next year? How do I reach my $1M annual revenue goal? How do I know which revenue stream is most profitable? Where am I spending too much money?
CFO. Your CFO is your business finance expert. We review your numbers and draw insights and trends from those numbers, giving you more information to make better decisions for your business. Our one and only interest is providing more insight into YOUR BUSINESS – not making money in the stock market or ensuring we are complying with the IRS. Without a CFO, you have virtually no way to make your numbers work for you strategically.
Your CFO focuses on how to make your business strong and sustainable based on your numbers.
Think about your own business: do you have this critical missing puzzle piece in place? Take the quiz below to figure out which finance professional you need RIGHT NOW to help your organization soar.
(Want more info on what a CFO is and does? Check this out!)