What do CFOs do?
Why do businesses hire a CFO in the first place? They typically hire a CFO in order to get clarity on what is going on in their business financially. The CFO is able to perform analyses and act as a translation tool between the numbers and the operations of the business.
Their primary function is to help the business operators and owners better understand what the financials mean from a business health and operational impact standpoint.
We are so lucky to live in a time where that level of analytics is becoming possible for small business owners. We always hear the stories about how Walmart only makes data driven decisions and Amazon is all about the AI analytics.
Where does that leave small business owners? Without a CFO, it often leaves them in the dark. But what are the core functions of a CFO and how is technology changing small business owner access to this tool set?
Historically, a CFO would support a business owner by pulling their financial data from their accounting system into a tool like Excel, and then manipulate that data into a more understandable format.
They would then sit down with the CEO and management team to translate what terms like accounts receivable aging (what my customers owe me) and other finance terms meant. They also would often put together a budget to show the business owner a clear picture of their goals for the year. Then, periodically throughout the year, they’d perform analyses to explain how what actually happened differed from the original plan (they call this a variance analysis).
Comparing what actually happened versus the original plan helps the business operator understand questions like, “Where did the cash go?” and “How is my business changing in unexpected ways?”
With the advancements in technology in the last several years and the experience of our founder, building hundreds and hundreds of models for everything from billion dollar companies to brand new start-ups, has allowed us to build a tool that performs many of the functions of a CFO automatically. That’s why it’s called AutoCFO!
This is a HUGE advantage to small business owners as they try to compete with their CFO-backed competition. Come join the small business finance revolution.
We will change the way you run your business and help you answer the question, “Where did the cash go?” and eliminate those surprises at the end of the year. Sign up for a free trial today!