Reasons Why Every Business – Big or Small – Needs a Chief Financial Officer

Standard

Brian Bonar is an established Chief Financial Officer, currently serving in the docket of a CFO and CEO of Trucept, Inc. He has a wealth of experience working as a CFO in many countries and industries around the world. For instance, he served as the Principle Chief Financial Officer of Allegiant Professional Business Services between 2008 and 2010. In 2003 he had been appointed as the acting Chief Financial Officer of Dalrada Financial Corp. Having worked in many more companies in different industries across the world, Mr. Bonar reveals an undisputable fact – all companies regardless of the industry and size require a CFO. Here are the reasons why:

 

Risk management

 

Every business, whether big or small, faces some sort of risk. Some risks are manageable but some can potentially destroy a business if not handled with professional care. For instance, the subsequent recession in the recent years should sensitize business owners and CEOs of companies to the constant risk that faces every business. This is where the need of a CFO comes in. One of the major roles of a CFO is risk management. This is because risk management underpins issues of financial controls and corporate strategy.

 

Business alignment

 

A CFO frequently finds himself managing matters unrelated to finances since he is also one of the business executives. As such, he is uniquely positioned in the company to identify problems as soon as they appear. He is able to work with line managers to solve these problems to improve operational agility, quality and efficiency. By integrating the different aspects and departments of a company, a CFO can ensure attainment of goals with minimal costs.

 

Interpretation of data

 

Companies are nowadays adapting the strategy of predictive analytics and business intelligence. While collection and verification of data is a simple and inexpensive task for many organizations, understanding of the data to provide meaningful information might not be easy. A CFO is needed to analyze the data. Typically, a CFO collects, analyzes and makes the data in a way that is understandable and actionable. Having knowledge of the underlying fundamentals of business, including competitors, consumers and company processes, is essential for all businesses.

 

Forecasting

 

The CFO is usually at the center of a company. He is positioned to see all numbers as they come in at all times. Being a “master of numbers”, a CFO is able to ask certain important questions: What’s happening? What does it mean? What will happen next? In essence, a CFO has insight and foresight. Therefore, he is able to help a company navigate the future and even challenge conventional thinking when necessary. Not only does a CFO understand where a business has been and is, but he also understands where it is headed.

Leave a Reply