When you hear "CFO" you probably picture a suited executive at a multinational. Someone who signs annual reports and appears in financial news. But in reality, a CFO's role is much more practical, and much more relevant to companies of every size than it looks.
What does a CFO really do?
A CFO is not an accountant. The accountant records what happened. The CFO interprets what happened, anticipates what’s coming, and helps you decide what to do about it.
Day to day, a CFO is responsible for:
- Financial planning. Building the annual budget, long-term projections and models to evaluate new opportunities. The architect of the company’s financial plan.
- Control and reporting. Making sure the numbers are right, reports go out on time and information reaches whoever needs it in the right format.
- Cash and liquidity management. Monitoring cash flow, anticipating financing needs and managing the relationship with banks and lenders.
- Risk management. Identifying the business’s financial risks (FX, concentration, liquidity) and building strategies to mitigate them.
- Investor and shareholder relations. Preparing and presenting financial information to partners, the board and investors. The bridge between the business and those who put up the capital.
- Transaction support. When there’s a merger, acquisition, sale or capital raise, the CFO leads the financial process from start to finish.
Why an External CFO?
A full-time CFO in the US can cost between USD $250,000 and USD $450,000 per year in base salary, plus bonuses, equity and benefits, bringing total comp to USD $400K–$700K annually. For a startup or mid-sized company, that fixed cost may not make sense.
An External CFO gives you access to the same level of expertise, with the flexibility to pay only for what you need, when you need it.
At MOVA we act as your External CFO: we integrate with your team, understand your business and give you the financial direction you need to make better decisions, without the cost of a full-time executive.
