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8 Invaluable Skills of CFOs that SMEs Need

Most SME business owners hesitate at the thought of hiring a CFO for their growing company, believing that only large businesses need and can afford a CFO. However, there’s lots of reasons why every business, even SMEs, need the expertise of a CFO.

A CFO is a highly competent and experienced financial executive that helps sharpen your business strategy. A CFO assists you to drive your company to greater profits, improved cash flow, and increase the value of your business.

If you think you cannot justify hiring someone full-time, you can seek the services of a part-time virtual CFO that provides the same expertise at the fraction of the cost. Think of hiring a virtual CFO as an investment for your growing company rather than an added cost.

Unfortunately, not all business owners are adept in managing finances, budgets and investment deals. You might feel that your business is actually doing quite well right now, but without the financial guidance of a CFO a turn for the worse might be just around the corner. An article published in the Sydney Morning Herald cited a data from ASIC reporting that the top three reasons why businesses fail are due to “poor financial control”, “poor strategic management”, and “inadequate cash flow”.

The way to avoid these common causes of failure is for the business to focus on their strategy, implement strong monetary control and record keeping and keep a close watch on cash. Obviously, the expertise of a virtual CFO can help avoid a business failure apart from that, a virtual CFO can also offer companies other invaluable sets of skills such as:

1. Accounting – An obvious reason for having a CFO in your team is for you to have access to accurate and updated financial records.
2.  Raising funds – CFOs have an understanding of the banking system as well as other sources of capital to help you raise funds if you need.
3. Closing sales – A virtual CFO can also lead your sales team in negotiating deals, as well as closing sales.
4. Operating the business – CFOs are skilled in understanding business processes and identifying opportunities, which makes them the best individual to help improve your business’ operations.
5. Legal counselling – While only large businesses need an in-house legal counsel, SMEs also need to enter into contracts and legal agreements that require review. Business owners can seek advice from CFOs that have a background in reviewing legal documents.
6. Helping IT-related strategies – Virtual CFOs can take the lead in assisting you generate information technology related strategies.
7. Controlling your expenses – Being prudent with money is deeply rooted in an accountant’s DNA. Virtual CFOs can help you stretch your dollar by knowing which costs you need to cut out to lessen the expenses without harming your business.
8. Advising you about the business – Running a business and making decisions on your own is tough, but a trusted CFO can be your source of sound advice for your business.

Looking at these skills, adding a virtual CFO in your team increases your enterprise’s potential for growth and success.

If you have been considering hiring a CFO and would like more information, please contact us.

David Officen
Business Improvement Manager

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written by:

McKinley Plowman