Do you have a CFO steering the profitability of your business?

It’s an essential question that many business owners might overlook. Ensuring your business stays profitable isn’t just about sales, technology, or services—it’s about having the right person at the helm.

Every company, except non-profits, aims to make money. So, who’s responsible for profitability in your organization?

In Fortune 100 companies, this role is clear. They treat their accounting departments as strategic partners, aligning with goals like profit, revenue, and market share. These teams provide key metrics that offer transparency and facilitate effective communication across the organization, tracking progress and identifying gaps.

Statistics back up the importance of this role. According to a 2020 survey by the National Small Business Association (NSBA), 70% of small businesses with a CFO or financial manager felt prepared to manage cash flow and profitability, compared to just 30% of businesses without one.

Here’s why smaller firms often struggle:

  1. The Undervalued Role of Accounting
    Verne Harnish in Scaling Up emphasizes that many growth-focused firms see accounting as just a tool for tax compliance and bill payment. It should be a forward-looking function driving strategic decisions.
     
  2. The Expertise Gap
    Just as you wouldn’t hire a landscaper to rewire your house, you shouldn’t rely on a bookkeeper for complex financial planning. The right talent is crucial for driving profitability.
     
  3. The Planning Tool Deficit
    Without a budget, strategic plan, or succession plan, it’s like traveling without a map. These tools set a clear path to increased profitability and long-term success.

Strategic planning isn’t just for big companies. If you’re ready to rethink your approach to profitability and harness the power of a robust accounting function, let’s talk about how to get started.
 
 

Your CPA Shouldn’t Be Your CFO!

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