Problems that CFO Services Help Solve

Problems that CFO Services Help Solve

A few decades ago, a CFO was known as the company’s number-cruncher – whose main tasks involved the books and records of the company, financial reporting, and statutory compliance. Fast forward to the present, a CFO is more than just the person who calls you out when the company doesn’t have enough budget. Today, CFOs take on a more active role in providing guidance and direction to the company. 

From being mostly behind the scenes – a modern CFO is now more of a strategic player in the leadership team. They look at the short and long-term future of the business and make the necessary adjustments to maximise the company’s value and performance. 


What problems do CFO services help solve?

Poor Cash Management

Cash is the lifeblood of any business, and effective cash management will help ensure that the company continues to survive and thrive. Some tools that help owners and founders better manage their cash include reports that reveal the organisation’s cash position and cash flow forecasts. These tools, plus the guidance of a CFO, will warn owners of any possible cash shortfalls, giving them time to make necessary adjustments.


Improper Use of the Budget

A budget is essential for a business, especially when planning and forecasting profits, expenses, and revenue for the future. It shows potential problem areas, identifies growth opportunities, controls spending, and helps secure company funding. A budget can also serve as a roadmap, aligning everyone in the organisation to work around the same goals.   

A budget is only effective if it’s built and used correctly; this is where a CFO can help. With sound financial data, CFOs develop the company’s budget and review it along the way, making updates when needed.

Related: 7 Steps to An Effective Budget That Will Help You Grow Your Business


Raising Capital

A report from The Australian Financial Review revealed that venture capital investments in Aussie tech firms fell by 52% in June 2022, making some founders feel that they have a lesser chance of securing funds from VCs. 

Another advantage of having a CFO on your team is that they help you target the right VCs, prepare due diligence and guide you throughout the fundraising process. 

In addition, a CFO also helps identify the best type of funding (other than VCs), where you qualify, and what structure is best for your startup.


Lack of Internal Controls

Internal controls are vital to a business’ finance function as they prevent errors, fraud, and security breaches. A lack of these internal controls could mean your company is at risk of these problems. 

A CFO can help evaluate your company’s internal controls and recommend areas you can improve. Tight internal controls can help build trust with your stakeholders/investors and ensure that compliance is met. 


Inaccurate Reporting

Sound financial reporting is key to a company’s success, and inaccuracies hinder owners from seeing the actual numbers behind their business. A CFO’s role is to ensure that these financial reports are precise and designed to implement suitable strategies for the company. This will allow CFOs and the management to review and analyse transactions and identify trends quickly. 


Mentioned above are just some problems in which CFOs can support companies, but their services also expand to other business areas. In addition to their financial role, CFOs serve as partners to CEOs, guiding them in their decision-making, particularly in matters concerning finance.


CFO Services for Small Businesses and Startups

It may not be best for a small company or a new venture to hire a CFO as a full-time employee – this is where virtual CFO Services makes sense. An outsourced VCFO can hold the same role as an in-house CFO but is less expensive as they operate remotely. 

Here at Cloud CFO, we offer various CFO service packages so that we can support your business where we’re needed most.

Book a free consultation with our experts today if you want to know how a VCFO can help your small business or startup. 


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