The CFO (Chief Financial Officer) plays a crucial role in the development and structuring of a startup, as they are responsible for the planning and execution of the entire financial strategy, enabling the maximization of results and greater transparency in financial reporting.
In addition to financial activities, it is essential for the CFO to navigate and interact across various interdependent areas such as accounting, auditing, human resources, sales, operations, new business, marketing, among others, in order to delve into the operation and thereby expand their knowledge of the business and overall strategy.
What does a CFO do?
Among the main responsibilities of a CFO, we can highlight the following:
- Cash management (short, medium, and long term)
- Financial planning and analysis (FP&A)
- Budgeting and forecasting
- Decision-making on investments and financing
- Accountability through management and accounting reports
- Business planning
- Team management and development
In the startup world, the CFO assumes an even more strategic position, considering the levels of operational uncertainty, rapid and continuous growth, the challenges of cash micro-management, the dynamism of stakeholders, and other factors that make the challenge even more interesting.
When to hire a CFO?
I always say that running a company without financial management is like navigating the high seas without compasses and appropriate navigation equipment. No matter how skilled the captain of the ship may be, they are likely to encounter numerous obstacles and setbacks that could be avoided with the proper use of resources. In startups and companies in general, it is vital to have effective financial tools, indicators, and management in order to adequately prepare for their challenges and more easily overcome any obstacles that may arise.
That being said, from the initial moment you decide to embark on entrepreneurship, even before opening your company, it is highly recommended to have a CFO. Having financial discipline from the pre-operational stage of operations and having proper financial planning and projections are of paramount importance for the success and improved performance of the business.
Having a qualified professional dedicated full-time to your business, especially in the early stages and expansion phases, can significantly increase administrative expenses, making it impractical to hire one and leaving your operation exposed to financial risks and lack of planning.
With that in mind, Soul Finance is comprised of highly skilled professionals with market experience and the necessary dedication to assist your company in facing the challenges of financial management, tailoring your team to the size and needs of your operation. As a result, all companies, from their inception, can organize themselves for sustainable and secure growth.