If you’re a business owner, you know how much goes into running a business. While larger companies are able to hire many employees and delegate tasks, small business owners wear many hats over the course of the day – tackling everything from marketing to sales to financial management.
But is that the right way to run a business? Should one person fill so many different roles? For a business to run properly, the essential roles of the CEO, CFO, managers, and the rest of the team should be divided.
Roles in a Business
The highest-ranking executive in a company, the chief executive officer (CEO) is the public face of a company. The CEO is responsible for making major corporate decisions, managing operations, and serving as a communicator between the board of directors and corporate operations. Depending on the size of the business, the CEO may be an overseer or may be deeply involved in the day-to-day functioning of the company.
The chief financial officer (CFO) has an equally important role to fill. Responsible for managing the company’s finances, the CFO’s duties include tracking cash flow, analyzing the company’s strengths and weaknesses, and financial planning. Because CFOs have skills and expertise in finance, they ensure that a company’s money is being managed responsibly.
Managers also fill an indispensable role in companies across all sectors. With the responsibility of overseeing a department or group of employees, managers ensure that all parts of a company are running efficiently.
And finally, the rest of the team carries out day-to-day tasks that allow the business to function. Without employees below the CEO, CFO, and managers, a business cannot run efficiently.
Though each of these roles is essential to the functioning of a business, many small businesses don’t have the resources to hire full-time employees to fill each one. Some small business owners outsource work, while others try to fill all of these roles themselves. Of course, the business owners who are able to delegate the work to people who specialize in their respective fields have more success.
A Virtual CFO – Seeking Help
There are a number of ways to go about filling these roles, including going to a hiring agency or taking on a freelancer or contractor. For instance, a business may hire a virtual CFO to manage its finances.
A virtual CFO provides the same services and expertise as an in-house CFO – from financial planning and management of financial risks to record-keeping and financial reporting. A virtual CFO can also offer guidance in accounting, sales, training, and strategic planning.
Hiring an in-house CFO is expensive, with salaries ranging from $175,000 to $480,000 per year plus vacations, bonuses, and benefits. But because a virtual CFO can work remotely and provide the services you need as you need them, it costs significantly less to hire a virtual CFO than an in-house CFO. This makes a virtual CFO an attractive alternative for businesses of all sizes.
The benefits of hiring a virtual CFO are huge. At the Virtual CFO Group, we’ve seen the difference that skilled financial management can make for a business. By working with us, one of our clients saved over $350,000 in the first year of management. Just think what we could do for your business!
The Virtual CFO Group is here for all of your CFO needs. Our inbox is always open to answer questions, so please don’t hesitate to reach out!