One of the most critical problems to face small and medium enterprises (SMEs), especially those growing at a fast pace, is knowing the right time to hire financial expert for managing the finances. Being a business owner, you need to manage business costs, hunt for new clients, create a strategy to survive in the competition and so on. SME has limited investments and need to manage business costs strictly to keep the pace in the competitive industry. At the same time it needs a leader who strategically leads the organization to their goals. CFOs are the leaders who help the stakeholders to set the vision of the company and lay down policies and practices on how to invest funds with maximum returns, compliance with the laws and regulations, and making reliable projections for the cash flows. All these activities of the CFO are equally important to all the departments of the organization to align their strategy and drive the organization towards its goals.
One area of expertise that a CFO specializes in and most important area of today’s business environment which often ignored by owners of SMEs is the area known as strategic financial management. As small and medium sized businesses grow, their needs tend to expand what their accountants or bookkeeping staff can offer and their future success and on-going business growth will likely to be very limited by not accessing the right level of financial guidance.
The right level of financial advice is equally important for a growing business as important the other services the business is acquiring. Without CFO advice the stakeholders of course are making decisions that will lead them to incomplete results.
A CFO resides at the top of the hierarchy and could be one of the most important advisors to the board of directors. Before any resolution is passed, the CFO could give the natural and legal ways that could be adopted to get most out of the funds.