For most of my career, I have provided financial services to entrepreneurial, fast-growth companies.  With a few exceptions, most of these businesses have been closely held, privately-owned companies that are run directly by the owner or companies that are backed by venture capital firms.  In other words, I work directly with the owner of the company who happens to also be the president or chief executive officer and I interface directly with outside funding sources.  This size and type company is a sweet spot for me; one about which I am very enthusiastic.

My clients have included everything from startups to large, national companies and pretty much every stage in between.  They have covered a variety of industries including technology firms (including software and hardware), retail, manufacturing, restaurant groups, catering companies, proprietary schools, health practitioners, consulting firms, advertising agencies, plus many more.   

Based on my experience, I believe that every company – regardless of size –needs at least some financial leadership from an experienced financial adviser who essentially acts as a chief financial officer even if it is on a very part-time basis or an hourly consulting basis.  Very often, the business owner/CEO is more oriented toward business development or some other aspect of the company rather than financial.  The perspective of the chief financial officer, which is geared toward return on investment (ROI) and longer term value creation, is very important in decision-making. 

The role of the outside CPA is a different from that of a CFO.  The typical CPA is more focused on financial reporting and tax compliance.  Many if not most CPAs have never worked in private companies except in very narrow capacities and rarely at an executive level.  This lack of relevant privately owned business experience in a CFO role can make asking your CPA for business advice somewhat risky. 

Small businesses in particular have limited resources and these resources need to be tightly focused and directed toward business which will generate the best return on investment possible.  When the business owner/CEO has a CFO as a decision partner, the decisions will incorporate the best thinking of the CEO and that of the CFO. 

One question that comes up frequently relates to the duties of a chief financial officer specifically in a small company environment.  CFO duties do vary depending on the size of the client company.  Sometimes, I find that a company does not have a person on staff with the title or even the role of controller.  Controllers are responsible for safeguarding the assets of the company.  In these companies without a controller, the accounting function is typically being handled by an office manager or a bookkeeper and sometimes the outside CPA. In this situation, one of my CFO responsibilities will include directly developing the skills of the office manager/bookkeeper to function more as the controller of the company.  In almost all cases, I recommend specific educational courses to assist in the development of this person.

At other times, when there is a controller on staff, I work directly with him or her to determine which facets of the financial systems need to be enhanced in order to improve the financial reporting for the company so that it is more accurate and timely.  Most importantly, I work with the controller to generate the types of reports the CEO needs to manage the company better.

As the CFO, I assist the CEO in developing business strategies that maximize profitability, cash flow and return on investment.  Then I roll up my sleeves and assist in implementing these strategies.  CFOs in closely held business don’t have the luxury of sitting in an ivory tower.  They must get involved, whether that involvement is in directing, managing or inspiring others or the involvement is in the direct, hands-on implementation of projects. 

As the CFO, I prepare or oversee the creation of the business plans, including business models, which are used for raising money or obtaining financing and thinking through decisions.  I interface directly with funding sources and bankers and facilitate the development of the relationship directly between the CEO and these financing sources. 

I do this CFO work on an as-needed basis and sometimes that means working full time for a particular company on a project for a week or two weeks or whatever is needed and sometimes it means no work for a particular company for short stretches of time.  Most of my clients use my services on a part-time basis, which means that I may provide CFO services to several companies for 10 hours a week or five hours a month, whatever the particular client company needs.