How to be the CFO (Chief Financial Officer ) in your business

I am a huge proponent of people having a bookkeeper, having an accountant. Those are definitely things that you can outsource and at a certain income level, business revenue level, you should be. Because that’s not the best use of your time. But that does not mean that you can outsource being the CFO.

And so I say, you can never outsource being that CFO. So you need to be the one that is constantly analyzing the numbers, making decisions based on what you’re seeing.

Many times as business owners, our numbers are present to past. So like a P and L sheet, balance sheet, that’s all numbers that have already transpired. And then we’re doing the things where we reconcile the transactions .

Being the CFO means that we can analyze the data from the past, we can have accurate current data for right now, and that we’re strategizing and making like decisions and moves future-oriented.

So it’s really critical to create projections inside your business . With understanding of the cash flow of your business, and create a cash flow projection to be able to plan ahead and have the money to keep your business runing.

So you need to make sure that you ‘re strategizing your business and personal finances.

How do you plan for the future so you ‘re not just like catching things as they’re thrown at you ?

Yes you need to have a good understanding of financial analysis and reporting. This may require hiring a professional accountant or bookkeeper who can help you interpret your financial data, identify trends and patterns, and make informed decisions based on your financial goals.

While you can certainly learn these skills yourself, it can be time-consuming and challenging to master. By outsourcing this work to a professional, you can free up your time to focus on other aspects of your business while still having the peace of mind that your finances are being managed effectively.

But have the skills to make these Cash flow projections on your own is game changer !!

Absolutely, being the CFO (Chief Financial Officer) of your business is crucial for its success.

Her are some ways you can get involved in the money side of your business.

☑️ Financial Goals: As a business owner, it’s essential to have financial goals for your business. These goals can be short-term or long-term, and they should be specific, measurable, attainable, relevant, and time-bound . You can work with your accountant or bookkeeper to determine what goals make sense for your business

☑️Track Your Finances: While you can outsource the bookkeeping and accounting aspects of your business, it’s still important to keep track of your finances. You can use accounting software to record your financial transactions and generate reports. These reports can help you make informed decisions about your business.

☑️Monitor Cash Flow: Cash flow is the lifeblood of your business, and it’s essential to monitor it regularly. You can use cash flow forecasts to predict how much cash you’ll have on hand in the coming weeks and months. This information can help you make decisions about when to make purchases or investments.

In summary, getting involved in the money side of your business means setting financial goals, tracking your finances, monitoring cash flow, analyzing financial data, and seeking professional advice when necessary. By doing these things, you can take control of your business’s finances and set it up for long-term success.