The reasons every company needs a Chief Financial Officer are many and complex. But they boil down to this: No matter what business you’re in, your business involves money. The CFO is a specialist who is trained in every aspect of the financial segments of your business. Here are 3 good reasons for your company to hire a Chief Financial Officer.
1. Your CFO will know the tax regulations for your industry. Not in just a vague, general way, but the nuts-and-bolts of everyday operations that can make or break you. For instance, in the hotel and restaurant industry, did you know that natural gas expense may be treated in different manners for some tax purposes, depending on its use? Your CFO will know, and be able to position you to take advantage of tax regulations that are beneficial.
2. Your CFO will be an expert in the financial positioning of your company. A CFO will be able to examine the company to see if your funds are being utilized for maximum benefit. Do you have idle funds sitting in bank accounts that could be making money for you? The CFO will examine the cash flow of the business entity and determine what the exact financial position of the company is, whether or not additional funds can be invested, and what the best type of investment is. The CFO can give guidance as to the best timing of accounts payable payments and help maximize revenue from receivables. Their knowledge of Generally Accepted Accounting Principles (GAAP) is an indispensable weapon in the modern business organization’s arsenal.
3. By reason of their expertise, a CFO gives credibility to an organization. Any organization will benefit from the knowledge a financial and tax specialist brings. Chief Financial Officers usually have baccalaureate or advanced degrees in accounting or finance and most often are Certified Public Accountants. This means they have extensive training and knowledge of these critical areas that most business owners just don’t have.
For all of these reasons, adding a CFO to your organization can be the best move possible. If your entity is not large enough to hire a full-time CFO, the option to bring one in from outside sources to give financial guidance should definitely be explored. It’s actually simple: Every organization deserves the absolute best tax and financial guidance they can get to help chart their course for everyday business, and to aid in steering them through the murky waters of present-day tax regulation planning and financial investment.
This information is presented by Foster Financial CPA.
Tax Tips for the Self-Employed
Do You Need to Send Out 1099s?
Checklist for Maintaining Your Limited Liability: Avoiding Piercing the Corporate Veil
Why Small Businesses Need a CPA
The New Tax Brackets for 2019
How Tax Reform Will Affect Your Business Meals and Entertainment