Are you considering hiring a small business CFO but not sure whether it’s a smart move?

Your situation is understandable because it’s not commonplace for small companies to hire a chief financial officer; an executive position that’s associated with large corporations and Silicon Valley startups. Most small businesses make do with a bookkeeper, accountant, or accounting software.

However, while hiring a CFO will make a big impact on your labor expenses, unless you opt for hiring a Fractional CFO, there are a number of great reasons to go ahead and make the hire

Read on to learn why your business is better off with a CFO.

1. Cash Flow Management

It’s an established fact that many small businesses fail within a decade. But did you know a whopping 82 percent of those that fail to do so because they run into cash flow problems?

Many small business owners lack the expertise to manage their cash flows soundly. As a result, the businesses end up in a cash crunch; a situation where expenses outstrip revenues. Without adequate working capital at hand, your business will grind to a halt.

A CFO is an experienced financial specialist. They have the skills to develop a cash flow management strategy that will keep your business afloat. They’ll also develop cash flow forecasts, giving you a clearer picture of your business’s short-term and long-term financial performance.

2. Financial Risk Management

Every business is exposed to various risks, including financial. Identifying the financial risks your small business faces and implementing suitable risk management solutions is key to business survival.

Unfortunately, if you’re anything like the average small business owner, zeroing in on the financial risks hanging over your company is difficult.

3. Financial Decision Making

The financial decisions you make can make or break your business. And, virtually every business decision you make has a cost implication.

For example, if you decide to go on a recruitment spree, the effect will be felt on your wage bill. If you go on a business expansion drive, your working capital will feel the heat.

4. Increase Company Value

There are hires that raise the value or profile of your business in the industry. One such hire is the CFO. Being a position that’s associated with corporations, hiring a CFO will send a message that your small business is ready to play in the big league.

If you’re planning to raise equity capital or even get big business loans, having a CFO on your team is a plus.

Don’t worry if your company can’t afford to hire an in-house CFO at the moment. Companies like https://finvisor.com/ provide on-demand or fractional CFO services that are just as beneficial.

You Need a Small Business CFO

You’re on the right path if you’re considering hiring a small business CFO. Managing business finances is a sensitive task that requires a trained hand. In a CFO, you’ll have a professional you can bank on to steer your business in the right financial direction.

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