CFO as a service is not just a buzzword but a promising approach for start-ups and established small and medium-sized enterprises (SMEs).
In this article, we will shed light on the setup and success factors for working with external CFOs and how they differ from interim CFOs.
Why CFO as a Service?
In many SMEs, finances are often neglected, as the founders’ focus is understandably on product development and/or increasing sales.
Financial management is therefore often seen as a chore, which leads to a lack of transparency for number-based decisions.
Decisions are often even made based on gut instinct.
The main reasons for using a CFO as a service are obvious: companies bring expertise in-house that they would otherwise not be able to afford.
Experienced CFOs improve transparency, the financial situation and promote data-driven decisions.
Why not simply hire an interim CFO?
Interim CFOs often only stay with the company for a limited period of around 3-12 months.
After that, they are gone again and the issues may no longer be consistently pursued.
Likewise, as with every change of employee, a lot of knowledge that has been built up is lost.
Tasks of an external CFO:
An external CFO is responsible for strategic controlling, planning & forecasting, liquidity management, financing, operational controlling and accounting management.
The specific tasks are agreed individually between the company and the external CFO, whereby clear roles and responsibilities must be defined.
Success factors for CFO as a Service:
It is crucial that the CFO is seen as part of the management team and is involved in planning and decision-making.
In addition, regular communication is essential to ensure successful collaboration.
Conclusion
CFO as a Service offers small and medium-sized companies the opportunity to benefit from experienced financial experts, improve their financial situation and make informed decisions.
Clear roles and regular exchanges ensure effective collaboration that contributes to the long-term success of the company.
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