B2B CFO is a business firm, it adopts the concept of consultation of small to medium sized businesses. Their role is to provide or help hire Chief Financial Officers (CFO) to business owners.
B2B stands for business to business. In other words, it refers to the business interactions done between two businesses. An example for that may be if an office hires another office to perform some legal services for example.
Even if you are a business owner, it does not mean that you know everything about finance. This is when you need a CFO .The acronym CFO stands for Chief Financial Officer.
He/ she is responsible for executing financial decisions in a company. The CFO takes financial risks in any corporate.
Additionally, the CFO holds responsibility of preparing financial plans, record keeping as well as data analysis.
It is advisable that you hire a full-time help after your business starts to thrive. When you start growing into business and find it hard to manage the company's financial status, then you need to hire help.
The CFO is the sound of reason in any company. Hiring a CFO will make it easier to put yearly budget plans. Monitor cash flow. Handle all financial issues with banks. Analyze financial data and provide a well-analyzed plan to improve profits.
The best way to fill in your vacant financial position is to ask for professional help of a recruiting company. They will make your life easier as they have years and years of experience in this field.
There are various roles to the CFO. He/ well oriented with financial policies to the company. Be well acquainted with business to give correct advice and help employers do their job better.
Review financial statements periodically. Insure the integrity of values and numbers and has updated audit trail.
To match the fast pacing business life, the job description of a CFO has changed greatly as well. The CFO is not the treasury keeper. The role has evolved drastically.
The job description expanded to reach higher levels to the extent of being a trusted strategic adviser as well as a direct helper to the company's CEO.
Since the world has stepped incorporating technology in each aspect of business, the focus shifted to the analysis of data to support or strengthen the decision-making.
By focusing on the data analytics, this will lead in the reduction of risks greatly.
Financial planning is one of the most important tasks performed by the CFO. Any successful company must a 3 to 5 years plan. This is one of the most influential tasks of a CFO.
Providing the basis of a doable financial plan determines the success or the failure of the company as a whole. The CFO is the person responsible for issuing ideas for capital expansion as well as expanding the number of staff to hire.
Additionally, the CFO must study the market and gives specific attention to other competitive companies.
Setting an annual budget plan is yet another vital role a CFO carries out. CFOs must track international stock markets and predict any altering in the markets before it happens.
If a company has an intuitive CFO, this will reduce the amount of losses to a great extent.
Believe it or not, CFOs must also do time management. They have to lay more time and effort, emphasis if you may, on important issues and not waste their time on less important or irrelevant stuff.
They must be well aware of the famous business saying, "time is money." Ambition is very important when it comes to the qualities of a successful CFO.
They must be target or goal oriented to keep the business floating.
CFOs are the right hand of any business owner. They must have well-embedded market knowledge as well as the foresight to predict a problem before it arises. They help owners by providing financial solutions during crisis. CFOs must be critical thinkers so as they can come up with new different ways to allocate resources when they are few or there are not any. In addition, they must have financial intelligence that will enable them to tighten budgets and reduce costs.
A CFO must also have social intelligence. Since he/she will be a head of a department, a CFO must have charismatic leadership skills. Further, he/she must be aware of how to motivate people working within his/her team.
Knowing what motivates people and what makes them enhance their performance is one of the crucial elements of a successful CFO. Another vital role of a CFO is to choose correctly an experienced, self-motivated team. Having a well-structure team has the tendency to make the CFO's decision making much easier and more accurate.
The Federal Government of the United States has implemented various crucial elements to the fast growing business sector. One of the most important implementation is the usage of a CFO.
Thus, having a CFO is not a luxury anymore, if you do not have one not only that you will be breaking the law but also losing a whole lot of money.
Here are 5 of the most important elements that must be in a CFO:
1) Thinks outside the box.
2) Firm understanding of finance and accounting.
3) Ambitious enough to ensure the steady growth of any company.
4) Able to perform damage control in the cases of financial crisis or bankruptcy.
5) Most importantly having great leadership skills to insure the execution of all orders given by him/her.