As a business owner, you may find yourself taking on the responsibilities of a CFO (Chief Financial Officer) until your business is ready to bring in external expertise. A CFO plays a critical role in overseeing the financial health and strategy of your business. The good news is, you don’t need to hire a full-time CFO—many businesses benefit from part-time or outsourced CFO services to suit their needs and budget.

Let’s break down the two key types of CFO roles: Operations CFO and Strategic CFO.

1. The Operations CFO: Managing the Day-to-Day

An Operations CFO focuses on the day-to-day management of your business. They ensure that your operations run smoothly, and that you’re prepared for any potential risks or inefficiencies.

Key responsibilities include:

• Customer Management: Understanding your customers, their purchasing habits, and how to attract and retain them—whether through quotes, regular advertising, or streamlined sales processes.
• Supplier Relationships: Reviewing suppliers to ensure you’re getting the best value for money without compromising on quality.
• Capacity Planning: Managing hiring and firing processes to ensure the business has the capacity to meet demand.
• System and Procedure Optimisation: Evaluating systems and workflows to improve efficiency, reduce costs, and mitigate risks.
• Risk Management: Addressing risks through insurance, communication, and robust controls.
• Quick Wins: Identifying ways to save money, improve processes, and increase revenue quickly.

An Operations CFO may also be referred to as a Business Development Manager (BDM). When hiring for this role, it’s important to set clear guidelines on timeframes and how to implement changes, ensuring they’re adopted smoothly by your team.

2. The Strategic CFO: Planning for the Future

While an Operations CFO focuses on the present, a Strategic CFO looks towards the future, helping you plan and make decisions to achieve long-term success.

Key responsibilities include:

• Long-Term Strategy: Developing 5–10 year plans to guide your business’s growth and sustainability.
• Decision Support: Helping you make informed, strategic decisions that align with your long-term goals.
• Pathway Development: Identifying the steps needed to transition your business from its current state to your future vision.
• Diversification: Exploring new income streams and strategies to ensure stability and growth.
• Accountability: Keeping you on track with milestones and goals, ensuring progress towards the larger vision.

A Strategic CFO takes your ideas, even if they’re in their early stages, and turns them into actionable plans that set your business on the path to success.

Do You Need a CFO?

Whether you’re focused on improving daily operations or setting a long-term strategy, a CFO can add immense value to your business. Hiring a part-time or outsourced CFO is a cost-effective way to gain the expertise you need without committing to a full-time position.

At Northwest Accountancy, we understand the dual roles of a CFO and provide support tailored to your business’s needs. Whether you require operational insight, strategic planning, or both, our team is here to guide you every step of the way.

Explore our other blogs for more insights into bookkeeping, accounting, and business growth strategies. Let us help you take your business to the next level!