CFO? Why do I even need one when I have an accountant?

CEO, COO, CFO or the 'C-suite executives' who are commonly thought to be reserved for multi-national corporations or well-funded organisations could also be roles taken up by some(one) in your company without you realising it. In the most infant stage or strict-cost controlled model, the founder could even be wearing all hats. However, the key issue is, it is easy to wear a hat but whether the person is suited or not, that is a harsh reality which founders may avoid and hope things work out.

This is especially common in SMEs / start-ups' context when hiring a management typically comes with the costs which is seen to be 'extra', often not comparing to the potential values which could be added to the organisation in the long run. In this post, we will focus on the 3 key values a CFO can bring for SMEs / start-ups and why you need more than an accountant in your business. A CFO:

1) Ensures a solid base

An accountant could typically comply with IFRS and prepare the books and information required for statutory reporting. However, how exactly efficient or robust the processes (financial and non-financial) of a SME / start-up is often not a focus either due to a lack of resources or the right knowledge. With a CFO, the company can expect an eagle eye on the processes to ensure their efficiency and effectiveness to avoid wasting resources unknowingly.

2) Translates owners' visions to numbers

Every owner starts with an idea and visions for their businesses. However, these goals often get blurred amongst the overwhelming daily to-dos especially in a high volume business. A CFO can ensure parameters of owners' visions are set out to keep the business on track and constantly checks in to re-route the path to the visions if necessary. An accountant surely plays a key role in this process as a hired driver to provide a monthly B/S and P/L report but his / her duty is almost limited to this. However, the ability to set a practical plan (with numbers) for the owners together with a tracking plan and insights is what set a CFO apart from an accountant.

3) Focuses on growth

It is not uncommon for the owner to feel a glass ceiling to what their business can achieve or concerned about stagnant growth rate. The various options to raise funds, kill a project, increase investment or merge with others often spin around owners but which could be the safest or best options is always a dilemma. An accountant usually is capable of churning historical data but the growth is often not within his / her scope. Surely, no one is a crystal-gazer but with a CFO, dots are often connected with the owners to evaluate the options and avoid unnecessary growing pains.

Nevertheless, the reality is that hiring a full-time CFO could be way beyond a SME / start-up's budget and you may not really expect one to be 'fully utilised' 8 hour a day. Yet, you should never be alone and a part-time CFO can be a valuable partner. Have a chat with us on how we can tailor one suitable for your business, at fraction of cost.