10 Things to Expect from Your VP of Finance
The career path to owner-manager typically follows one of three arcs. They have a background in sales, they have a background in operations/engineering, or they were born into the business. The path almost no owner-manager follows to owning their own business is finance and accounting.
And since pretty much all businesses start out as small businesses, the perspective on finance and accounting of an owner-manager of a medium to large business is often shaped by their experience in running a much smaller business.
Back in those days, an owner-manager’s treasury and cash management function consisted of calling customers on overdue invoices, writing cheques to suppliers every month and calling their bank branch manager every so often to see how much money was in the bank.
You didn’t need anything in the way of management reporting because it was all in your head; you knew how much you spent, how much you sold and you had a pretty good idea of how much money you were making (or not), one month to the next.
As to the actual function of accounting, debits and credits, payroll remittances, taxes and so forth, your brother-in-law accountant did your books every month or you had a part-time bookkeeper come in to deal with it. As far as you were concerned, if your banker and the CRA were happy with your accounting function, so were you.