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Management of a company’s assets is an important part of the business. The assets are used to generate revenues and as such, must be managed appropriately in order to generate the greatest benefit. This management role is typically fulfilled by its chief financial officer (CFO). Typically large companies, especially if public, will always need to have this role fulfilled in order to gain the confidence of shareholders. Smaller companies and start-ups also have a need for this role in order to help their growth, but CFOs can be one of the highest paid positions due to the specialized knowledge they possess. This cost might not be able to be incurred by all companies and as such, CFO advisory services have become an important option for many small businesses.

What do CFO advisory services provide?

Some of the particulars of these services are:

– The ability to establish practices which can be considered best-in-practice for the industry. This will allow for a greater amount of value added to the company and will help to establish an environment which only the industry standard practices will be acceptable. CFO advisory services will also be required to monitor the implementation in order to ensure its accuracy.

– CFO advisory services provide the expertise to understand the drivers of a business and therefore be able to understand the future impacts of those drivers. This is highly important as each company will need to create budgets to help guide purchases, hiring and contract negotiations.

– CFO advisory services are also responsible to establish and preserve the finance function within the organization. The financial reporting is needed to satisfy the shareholders and potential investors. The CFO is at the head of this function and a highly functioning member in this role will help to bring comfort to all stakeholders.

– CFO advisory services will also provide overview of the operations. Especially in the manufacturing industry, the CFO will be tasked with overseeing the costing methods used. The costing has implications on operating margins and efficiency of the accounting department and the timeliness of the deliverables provided. The CFO will be charged with ensuring the costing methods are appropriate for the needs of the company.

– CFO advisory services are highly paid, likely at the request of shareholders, in order to ensure the best return in gained on the assets the shareholders own in the company. The CFO will have to keep the requests of the shareholders in mind when making strategic decisions with the company’s assets. Shareholders may impose restrictions such an internal rates of returns which will need to adhered to. This can limit the investment opportunities available and the CFO will be required to invest much of their time to find opportunities that will meet these required rates of returns. As some of the returns could be excessive this requires a high level of proficiency.

There are so many great reasons to engage the CFO advisory services. If you have a small or medium sized business, look into this option today.

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