Where is my business going?

A business needs a road map or plan for success. A CFO is familiar with strategic planning and can assist the owner in developing that road map. Whether that takes the shape of budgets and forecasting, or a fully developed strategic plan, the plan helps the owner address where they want to go and the steps needed to get there.

As your business grows in size or number of employees, several things happen. Growth in sales can cause growth in accounts receivable and inventory, putting strains on cash flow. As your cash is tied up in A/R and inventory, it puts pressure on your existing line of credit. A CFO or Controller can anticipate this growth through the use of cash flow forecasts and take steps to make sure the cash is there when needed.

Part of managing the growth in receivables and inventory involves focusing time on them to make sure they don’t grow unnecessarily. That should be the job of the CFO or Controller and the accounting department.

Growth in employees has another effect. It requires more administrative time for one. A CFO or Controller has the experience in dealing with Human Resources, and can free up executive or owner time from that function. The time freed can be used in what the owner does best, and not in administration.