Owner-manager’s tend be idiosyncratic, head-strong, forceful and demanding (not you of course, the other owner-managers reading this article). And while it’s important that every member of your management team keeps in step with you, it’s especially important that your CFO is in lock-step with you.
Here’s Five Reasons Why
- Your CFO is Often the Person You’ll Work Most Closely With
The CFO responsibility for cost management, financial controls and the final say on all financial decisions places him or her in a very prominent position in your organization. Not only are they a sounding board for you, they can also help to align your management team with your vision and goals.
- Your CFO Often Acts as the Spokesperson for Your Company
The best CEOs have a knack for transparency and simplifying complexity whether communicating with consumers, staff, investors or the management team–modern CFOs require the same ability.Most CFOs or accounting executives have the skills to deliver financial information and insights to investors and the financial markets but they should also embrace the role of reinforcing the company’s message with the management team, supporting your priorities and assuring that your management team work towards a common goal..
- Your CFO Represents Your Company to Sources of Finance
When it comes to the basic role of the CFO, ensuring compliance with financial reporting and financial control as well as facilitating transparency and accountability throughout the organization is a given.However, banks, venture capitalists and other lenders look for sustainable value that exceeds simply controlling costs and maximizing revenues. They look to the CFO to maximize expected economic value by accurately identifying, evaluating and responding to ongoing and emerging risks to the business to protect their investment.
- Your CFO Needs to be Able to Speak Truth to Power
Whether it’s to report that a project is over budget, revenues are falling or quarterly financial came in worse than expected, it’s difficult to deliver bad news to the boss. Successful CFOs—similar to the leadership style of many CEOs, anticipate bad news long before it occurs and have a proactive approach.
- Your CFO May Be Your Logical successor
A good CFO adds value throughout the organization, not just in finance. They should be conversant with all aspects of the business and be able to help come up with successful strategy and tactics pertaining to operations, sales and other key areas of the business.In short, they could and should be almost as knowledgeable about your business as you are, making them a possible candidate as your successor.