Management of a business is complex. Business owners are experts in their respective fields, but they often have to manage people, systems and processes that fall outside their field of expertise. Many businesses have strong bookkeeping and controller functions, but a CFO delivers enhanced value. Various small to medium-sized businesses cannot afford nor require a full-time CFO and that is where an interim CFO can assist, and why you should consider adding one to your management and advisory team.

What is a CFO? And How are They Different from a Controller or an Accountant? 

Or perhaps the questions should be, why would I pay someone to do something I already get from my bookkeeper, accountant or controller? Although a CFO is responsible for the overall accounting function of an organization, they often rely on existing accounting staff. A CFO is not a bookkeeper or traditional accountant – and it is important to understand why, and what you should be getting from your CFO. 

Your accountant, whether they be external or internal, is largely focused on the following areas:

• Financial reporting (of things that have already happened)

• Tax filing and

• Potential tax savings

• Compliance

• Providing reactive information 

• Largely focuses on what has already happened

An interim/part-time CFO would work with your existing bookkeeping/ accounting staff, focusing on:

• Proactive advice to help drive growth

• Profits

• Improving margins

• Cash flow management

• Looking at future opportunities to provide strategic advice 

The strategic and financial advice received from your CFO would provide you with options your business should consider with data to back it up. Your interim CFO would develop and track key metrics (both financial and operational) to help management better understand opportunities to further improve and make more money. 

A CFO will use your bookkeeper, accountant or controller’s information as tools to enable analysis, assist in strategic planning and advise you on future opportunities. The CFO anticipates what is going to happen, focuses on improving profitability strategically and seeks ways to improve decision making. The CFO’s role is primarily advising the CEO to assist in strategic decision-making in the areas of:

• Capital structure, including banking and shareholder relationships and reporting, and fundraising;

• Developing key statistics and performance indicators to improve results;

• Improvements to cash flow and profitability;

• Forecasting and planning;

• Succession and exit strategies to maximize value;

• Risk management and compliance;

• Tax planning; and

• Diplomatically managing third parties relationships when necessary (banks, vendors, auditors, tax advisors, customers, investors etc.)

Many companies, including yours, hire controllers and bookkeepers. These individuals are extremely important for an organization, but small to medium-sized businesses can benefit from the skills of an interim CFO. These roles are not interchangeable and are very different, despite using some of the same tools and resources. 

Contact Whitehorn to Discuss Your Potential Needs, Especially if You Want Help Answering These Questions:

Do you want to:

• Increase cash flow and profitability?

• Seek opportunities in a challenging marketplace, but not sure of the risks or where to start?

• Get more operational and financial intel to help manage future decision making?

• Develop a rolling monthly budget?

• Create a financial model that tracks leading indicators and operational performance?

• Identify problem areas before they happen?

• Know your future cash flows and needs look like?

• Improve your lending and investor relationships?

• Exit or retire from your business within the next 3-7 years?

A good CFO helps make you more money, increase cash flow, improve your key financial relationships and provide a sounding board for strategic decision-making. Not all businesses need a full-time CFO; for those that only require a part-time CFO, Whitehorn has 10 years of experience working directly with private small to medium-sized business owners and has the know-hows to help move your business forward.