Sunday, October 5, 2008

The role of a CFO (Chief Financial Officer)

I feel the need to always come back to the basics as sometimes the role of the CFO can get clouded by the demands placed on the role. The Part Time CFO has even more of a challenge to address what is a critical need in the business as well as addressing the basics.

The basic CFO Duties and CFO services that a Chief Financial Officer should focus on are as follows:

1. Drive the bottom Line
2. Project profitability
3. Enhance systems, improve controls and processes leading to operating efficiencies
4. Manage cash and cash flow problems
5. Optimize operations
6. Drive results
7. Contribute to business development
8. Shape financial strategy
9. Understand, identify and assess the risks of business ownership.
10. Accomplish something for the business in an area that the business owner does not expect a CFO to accomplish something. (i.e. help the company with search engine optimization enhancing its internet presence.)

If the CFO excels in these areas he will add tremendous value for the business owner.