The need for a chief financial officer (CFO) is often overlooked, especially by new companies, because of the lack of understanding about the job.
Generally, the CFO is responsible for:
1) Interpret and preparation of financial statements,
2) Develop a financial strategy in the company’s relationship with the bank and investors,
3) Payment of tax planning,
4) Formulate internal controls to minimize fraud,
5) Develop the company’s budget and
6) The handling of financial compliance.
There are many companies that provide the virtual cfo service in Melbourne.
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Given the importance of these tasks, it is difficult to believe that there are companies without the CFO in their employ. Despite the previously mentioned tasks are essential to business operations, it is quite common for founders to give them less priority and focused on finding new customers and improve their products and services.
However, for a company to grow, it needs to have a solid foundation, which is what a good CFO can provide. With the erratic fluttering of today’s business market, the role of the CFO may prove to be more important than ever.
If you are a small business owner, there are signs that your companies really need a CFO. You have to start the selection process for the CFO immediately if:
1) The company’s revenues experienced exponential growth
2) The Company has acquired venture capital, and
3) There are more than 30 workers are currently employed.
If you hire the services of a permanent CFO is really not possible, one option for you is to hire a part-time CFO. Part-time CFO is usually required to work for two days a week, but can make an additional hour depending on the needs of your company.