Far too many times, I come across business owners and CEOs (owners) who say they have a CFO only to find out when I ask a few questions that the person they call a CFO isn’t a CFO. In all reality, the owner’s CFO is really their bookkeeper, clerk, office manager, accountant, CPA, controller, chief accounting officer, or, God forbid, their uncle, nephew, spouse, or cousin Sal. With that type of “CFO,” is it any wonder why the company isn’t growing, or profits have stagnated, or why the owner can’t sleep at night or has no viable exit strategy?
Decoding the Role:
Unveiling the Functions of a CFO
A real CFO is a strategic business partner, advisor, confidant, customer service person, and mentor to an owner. Too often, owners think a CFO is supposed to put together their financial statements. No! A CFO is not your bookkeeper, accountant, or controller. That is not their job. Like any good leader, a true CFO will retain and lead people who are experts in those roles. A true CFO will set the goals, objectives, and timelines for those tasks and will ultimately be accountable for the results. But if the CFO is doing those tasks day-to-day, then your CFO is really a Controller. So stop calling them the CFO.
If your CFO doesn’t understand your marketing plans, the sales strategy, how your warehouse operates, who your key customers are and what makes them buy, or who the competitors are, or if they can’t speak clearly and confidently to your investors, bankers, or the board, or they can’t look you in the eye and politely point out problems with your strategy and offer up solutions, then fire them now!
One of my first bosses told me something that locked me into the finance field early on in my career; there are only two people at the company who need to know everything about the business - the CEO and the CFO. A CFO is a business planner. One thing I have learned through the years is if you are CEO or an owner, it is lonely at the top. A true CFO should be able to relieve some of that burden. If your CFO isn’t your right-hand man, you need to find one who is.
If you are interested in a valuation, a sale, or in strategic business consulting and are looking for an experienced advisor, please let me know. Thanks.
CEO and Founder of First CxO.
Bob Fiorella is a strategic problem solver, M&A advisor, and right-hand man to CEOs and business owners contemplating or dealing with a major change; whether it's restructuring a company, building a finance team, getting a loan, setting the company up for growth, successfully selling the company, etc. He began his career as an investment banker and worked on several deals including the multibillion-dollar merger of Avery and Dennison. Over the subsequent two decades, Bob’s career centered around the media, entertainment, packaged goods, wholesale distribution, specialty retail, technology, and software development industries where he took on roles such as SVP Finance, Chief Financial Officer, Chief Operating Officer, Chief Strategy Officer, and independent board member. Bob is the Founder and President of First CxO. Some of his assignments include being a fractional CFO for a $30mm packaging technology company, a $5mm software development company, and a $25mm e-commerce company. He is also an advisor to a $500mm franchising company. Bob holds a BS in Economics from Cornell University and an MBA from UCLA’s Anderson School of Management. Bob can be reached at 310-422-6858, bob@firstcxo.com.
Bob’s “claim to fame” is appearing on Season 13 of America’s Got Talent as part of the Angel City Chorale. They made it to the Semi-Finals.
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