Thursday, December 1, 2011
Getting the Services of a Chief Financing Officer
You are making the right decision if you acquire the services of a CFO for hire during your company's expansion period. Expanding your business is an exciting but very challenging phase, since you have to monitor a lot of things. It is inevitable for you to encounter inaccuracies in your bookkeeping and tax declarations; thus external help is necessary. Do not be distrustful towards an outsourced Chief Financial Officer, since his efficiency is very much dependent on you.
There are a number of duties you should perform when you get the services of a CFO for hire. First, you have to give him access to your bookkeeping records. These documents do contain exclusive company information, but you have to trust the CFO so that he can study your financial history. Do not worry about him revealing company's strategies to your competitors, since CFO's make a pact not to share the confidential information they find.
Part of granting the outsourced CFO access to your company records is introducing him to your accountants. The CFO needs to check with them how they came up with the values written in the bookkeeping records. Moreover, the CFO needs your accountants to help him understand your company's current financial situation.
Second, be very honest with the CFO: Do not be afraid to share information regarding taxes and payroll, especially when you are nervous about those. The CFO will help you correct your malpractices, if there are any. The CFO sees to it that your company declares and pays the right amount of tax. Moreover, he makes sure that your company does not violate employment laws.
Third, be open-minded when dealing with the CFO. This profession has greatly evolved in the last decade. CFOs are not just ordinary bookkeepers; they offer qualitative analysis. Thus, you will find the CFO giving you advice about which employees to keep, which products to continue manufacturing, and which workflow steps to eliminate. Indeed, some pieces of advice may be drastic, but keep in mind that CFOs base their decisions on your bookkeeping records.
Finally, regularly communicate with the CFO for hire you get. This is the only way you can be guided in every step of your business expansion. Listen to him, especially when he engages in economic forecasting. Doing this will make you aware of the changes in consumer habits and will make you prepared for economic crisis. Remember to ask the CFO to enumerate the consequences your company will face in every business decision you propose.
For more details, search CFO for hire in Google for related information.