The Four Faces of a CFO

One of the things you learn quickly when you own and operate a business is that you need to wear many hats. Your role changes week to week and, it might seem, from minute to minute. When you hire a virtual CFO to help manage and grow your company, you’ll quickly learn that they also wear multiple hats and that their role with your company seems to shift as your needs shift.

Deloitte took a deep dive into examining the four “faces” many CFOs wear. Let’s take a look at each of those faces and see how the four roles a vCFO plays can help your company.

Catalyst

Often, companies that hire virtual CFOs are looking to change. And, the CFO can serve as the catalyst for that change. Whether your business wants to move into a new market, open another physical location, hire more employees, or raise capital, the vCFO can guide you through the steps needed to make those changes reality.

A virtual CFO takes a good look at your company’s finances. They’ll let you know where there’s room for improvement. You might need to raise more money or spend less. The vCFO can highlight areas where you can easily cut back or illuminate expenses that are way higher than they need to be. If your company needs to raise funds to make the next phase of growth a reality, your vCFO can help you make connections with banks, investors, and other financing sources.

Operator

Outsourced CFOs become part of your team but aren’t employees of your company. Instead, they continue to operate their own businesses and are responsible for overseeing the operations of their companies.

Your vCFO can take on some operational functions within your company, though. Depending on how much of your financial responsibilities you outsource to the vCFO, they can oversee your company’s entire financial operations or just a portion. You might hire a vCFO to manage the financial planning aspect or to provide assistance with tax planning and preparation, too.

Steward

Your vCFO also acts as a steward of your company. That means they have an ethical responsibility to look out for your company’s best interests. They’ll ensure your company complies with financial regulations and accounting principles. They’ll also help you understand the risks involved in any financial decision you make, in contrast to the potential value of those decisions.

You want what’s best for your company and your virtual CFO does as well. If you have any questions or concerns about loans, investor financing, or the next steps for your company, you can ask them and receive an honest and well-thought-out answer.

Strategist

The final hat a vCFO wears is that of a strategist. This might be the role your company values most in a virtual CFO. You might have hired them to help you figure out what to do next with your company.

A virtual CFO will sit down with you and your other team members and work to develop a strategic plan. Your company’s strategic plan outlines where your company is headed in the future and charts out a roadmap to help it achieve its goals.

Since a vCFO is a neutral third party, they can provide an outside eye and neutral guidance regarding the changes you need to make to your strategy to help your business succeed now and in the future.

Whether your company needs a strategist, steward, operator, or catalyst, you need a virtual CFO. Contact the team at New Direction Capital to hire your vCFO today.