The term CFO means Chief Financial Officer. It sounds a bit high flying, however it’s a role for someone in any business, no matter what size.
Most small businesses have a bookkeeper who looks after transactions, paying bills, completing statutory returns such as Goods and Services Tax returns etc. They also have an accountant (mostly external) who looks after tax and compliance issues.
There’s a gap between these two, being information and guidance that a business owner needs to run and grow the business on a day to day basis.
Business owners need information such as:
- The true cost of products and services to get pricing right and make a profit
- Overheads level to ensure they are selling enough to cover them and avoid losses
- Dashboard reports on Key Performance Indicators (KPIs) such as
- sales by person, region, product/service type etc. to ensure they are on track
- marketing results to ensure sales will result
- product/service delivery/quality to ensure customer satisfaction
- staff attendance/satisfaction to ensure delivery resources/quality
- Feasibility studies on new products/services, outlets etc. to ensure they will be profitable
- Regular and accurate reports on financial performance with explanation about the ‘story’ they’re telling about the business results and guidance on how to achieve improvements
- A ‘sounding board’ to discuss business ideas, goals, plans, opportunities and how to capitalise on them
- Cash flow management and understanding what impacts cash flow such as Customer payments, Supplier payments, costs, overheads, sales, job/stock management, interest and taxes etc.
- Guidance on the right finance for business growth and help securing it
- Facilitating ‘changes’ in the business, such as team involvement and product/service developments
These are just some of the types of information business owners need to provide confidence that the business is running right and heading in the right direction.
If you don’t get this type of information currently and would like to discuss it with us, please give us a call and we’ll be happy to have a ‘Complimentary Chat’ about your needs and how we can help.
Phone: 1300 362 436