How CFOs Are Changing The Landscape Of Small-to-Medium Sized Businesses and Their Financial Success

Small to medium sized companies operate within a rapidly changing environment. And, due to this rapid changing nature, many are ill-prepared to handle the continuous movement and adaptability, usually the result of a lack of relevant management expertise.

In order for a company to survive and thrive, there must be changes made. A lack of adaptability can almost, inevitably, spell doom for a company.

What Factor Lead To Change Within An Organisation?

A company’s finances are the one factor that leads to a real insight into what is happening within a company. It’s the one factor that can lead to significant changes, both in terms of productivity and strategy.

By knowing what a company’s finances are like, steps can be taken to ensure crises are minimised or avoided altogether, and opportunities are capitalised on.  The company can also focus on management control systems, cash flow forecasts and more, including using this information to effectively communicate its strategies and operation.

The Importance Of CFOs In Work Environments

No company can afford to ignore and work without some type of financial structure, as it is necessary to boost employee and consumer confidence. Both economic climate and operative finance are a complicated but necessary issue for companies. Specialised support and expertise are required to manage challenges most effectively. These specialised professionals are referred to as Chief Financial Officers (CFO).

These specialised professionals provide a non-invasive, flexible and on-site intervention, working for however long they are needed, on a full time, part time or interim basis, to ensure that a company’s financial operations are working efficiently and in compliance with the law. It doesn’t matter how complex the issue is; a CFO utilises their knowledge and expertise to advise management of the best course of action.

A Chief Financial Officer will carefully and strategically review the company’s financials and all of its resources. Many small to medium sized businesses still have family finance and personal assets tied into the business. Therefore, the entire process is multi-faceted, and a strategy will be developed over time to strengthen the business’s position.

Mary Ellen Biery, has offered a summary of a CFOs responsibilities here:

4 Key Functions of a Chief Financial Officer

Book

The primary role of a CFO, of course, is to make sure financial records of the company are in order. “They’ve got to make sure the books are right,” says Brian Hamilton, chairman of Sageworks. “Most CFOs have that covered.”

Share

CFOs should make sure that management has critical decision-making data. In order to provide that forward-looking data, CFOs must develop good forecasts and utilise reliable benchmarking data.

Comply

Every company has compliance issues to address, and the CFO oversees many of them. Filing and paying taxes is one example. CFOs oversee duties related to shareholders, such as issuing dividends, preventing fraud and disclosing financial information.

Assist

The final CFO function that is vital to companies is assisting internal customers – the people in the company, such as operating managers, who need data to determine things like decisions on pricing or the lifetime value of a customer.

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Adopting the recommendations offered by a full-time or interim CFO can provide solutions to most complex financial problems… even for the most innovative companies.

For the immediate future, CFOs provide a new service that companies can benefit from when it comes to their finances and financial services. The market recognises the value and stability a CFO can bring, increasing business confidence right away.

If you are interested in discovering how you can utilise Assured FD Services, as your interim CFO, to ensure your business’s future stability and growth, call us on 07817 676371, or email us at info@assuredfd.co.uk.

The post How CFOs Are Changing The Landscape Of Small-to-Medium Sized Businesses and Their Financial Success appeared first on Assured FD Services.

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