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Why Business Need a CFO?

Chief Financial Officer

CFO who understands your business model, your vision, your policy & strategies’, you’re banking relationships & requirement. CFO deals with board of directors, Investors, auditor.

CFO prepares detailed financial and management reports, tax planning, sets policies around controls and payroll.

CFO interprets budget, forecast, mergers, acquisitions, compliance issues. Cost benefits analysis.

CFO is face of the company, Act as a right hand for the CEO or Promoters to grow the business

Why Business Need a CFO

  • To improve profit and control cost

Controlling costs, improving productivity, and analyzing pricing strategies are three ways the CFO can improve profitability.  CFO analysis the data from every angle, better decisions can be made across the company.

  • To deal with outside investors, debt facilitation or M&A,

When a business is preparing for a merger or acquisition, a team is needed to evaluate a potential acquisition. The CFO will interpret the reports from the due diligence team to tailor the terms according to the findings. CFO will be well prepared and anticipate questions to shorten the process.

  • For growth

Growth is an important indicator that a CFO is needed. Growth requires an expansion of automated systems, and additional capital and financing. CFO will interpret the investment and technology, and the terms of acquiring capital. CFO will analyze the company’s current financial position, market trends to implement the best strategies, and improve cash flow and profits.

  • To understand markets

The future is more unpredictable than ever. Market is very dynamic; technologies are changing every now and then. As a result, the CFO looked to as a change specialist. The CFO helps to identify new opportunities, new markets, plan for future growth; CFO can communicate the corporate growth story effectively. 

  • To execute strategy

CEO is at the center of developing a strategy process. However, the CFO is a key participant in the planning process by expanding on the CEO’s strategies. CFO can outline the details of a strategic plan, test it, review its viability, and advice on potential changes to the plan to achieve the desired result.

  • To understand current or future cash flows

If your business capital or money is not growing, it is an indication that you need a CFO. The CFO will perform an accurate forecast, define specific investment strategy, evaluate your terms, set up and enforce a payment discipline and segment your customers, suppliers, and inventory.

  • To understand your margins

Your CEO or company leaders may be unaware of the cumulative impact of the potentially thousands of pricing decisions made on a daily basis. A lack of discipline in price execution can, over time, be more damaging than a poorly-defined pricing strategy. CFO can provide the data and analysis to understand the market and margin.

  • Detailed financial data is critical to making sound business decisions

Without detailed financial data, decision-making relies on intuition and gut. It can also lead to conflicts within an organization. You are unable to generate financial reports required by bankers, suppliers, shareholders, investors, and partners. CEOs are empowered with a financial executive in place who knows how to solve problems and run the business financially.  CFOs are perfectly positioned to help create a company that is financially strong, and creates wealth for its owners.

 

You don’t necessarily have to invest in a full-time CFO right away. At first, someone who comes in one or two days a week might suffice.  If you believe there is a need for a CFO in your organization, please call us on 9619165432 or mail us on capravintawle@gmail.com at your convenience, we will be happy to schedule a complimentary consultation to discuss your needs and business challenges. 

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