Firstly, what is a CFO
Having a CFO is not the same as having an accountant, nor does the CFO replace the accountant. CFOs and accountants work together, along with other advisers. The CFO has a different perspective and more closely-focused responsibilities as an internal member of the management team.
Because CFOs must be very highly qualified and experienced, they’re costly to employ. Larger companies have a CFO working at the right-hand of the CEO, along with other C-level executives. A smaller business usually needs a ‘real’ CFO long before it can really afford to hire one. How surely a smaller business grows and scales-up, and how much more value is built within the business for an exit, can largely depend on a skillful CFO.
“A chief financial officer (CFO) is the senior executive responsible for managing the financial actions of a company. The CFO’s duties include tracking cash flow and financial planning as well as analyzing the company’s financial strengths and weaknesses and proposing corrective actions. The CFO is similar to a treasurer or controller because [they are] responsible for managing the finance and accounting divisions and for ensuring that the company’s financial reports are accurate and completed in a timely manner.”