Recently, I read a great and thought challenging article from a few years ago, highlighting the key message around why organizations need a good CFO in their business – especially in these trying times in being able to provide sound stewardship in developing structures and creating sustainable financial success for the business that aligns with the pillars of success.
Key to this success is in developing the CFO role and understanding the business operating mode. A CFO has the ability to work with the key stakeholders (board of directors, auditors, bankers, insurance providers), providing detailed financial and management reports, as well as tax planning and policies of compliance controls (budgeting and forecasting, managing mergers or acquisitions, and compliance issues).
Determining the type of CFO or what level of skill is needed is dependent on the state of the company, and where its aspirations lie.
In summary, a good value adding and pro-active CFO would be required when your organization is faced with periods of:
- Rapid growth
- M&A opportunities, potential busines re-organization or debt rearrangement
- When profitability is not at a desirable level, and you don’t know why.
- Needing a better and more complete understanding of business drivers
- Tax planning
- Developing a Financial Model that highlights your strategy
- Visibility of future cash flows and risks
- Provision of detailed financial data, critical to making sound business decisions
If this describes your business or if you are facing a period of uncertainty concerned with Covid 19, government assistance or intervention, foreign exchange markets outlooks and effect on your supply chain pricing or even what the next 3 months holds for you then please reach out as we have a number of options available to assist you.
New Zealand contact:
Richard Justice – Regional Director, Auckland
0800 422 121
Article written by Brendan Raftery CFO at The CFO Centre Australia