Recently, I read a thought provoking article from a few years back, highlighting a key message for entrepreneurs and CEOs – Why organizations need a good CFO for their business? Especially now during these trying times, a CFO provides sound stewardship and guidance, helping restructure to create sustainable financial viability and long term success for business.
Critical to success, the CFO needs to understand the core business model, economic drivers and cashflow cycle. Being able to relate to and work with all the key stakeholders of the business is paramount (directors, shareholders, employees, customers, suppliers, auditors, bankers, etc.). Providing reliable financial and management information, tax planning, budgeting and forecasting, access to funding, exit planning and compliance management.
Determining the type of CFO or what level of skill is needed is dependent on the state of the company, and where it’s aspirations lie.
In summary, a good value adding and pro-active CFO would be required when your organization is faced with periods of:
- Rapid growth
- M&A opportunities, potential busines re-organization or debt re-arrangement
- When profitability and cashflow is not at a desirable level, and you don’t know why.
- Needing a better and more complete understanding of business drivers
- Tax planning
- Developing a Financial Model that talks to your business strategy
- Visibility of future cash flows and risks
- Provision of detailed financial data, critical to making sound business decisions
If this describes your business or if you are facing a period of vulnerability due to COVID-19 we are here to help.
The FD Centre is currently offering a complimentary 60 minute Planning Session with one of our top notch CFOs, if you’d like to register your interest please click here https://www.fdcentre.co.za/future-proof-your-business/