Qualities that make a good CFO
Just a few simple qualities will make all the difference
Ethics
Your CFO should be the ethical center of your company. They are the first line of defense to stop the company from getting into litigation (along with your General Counsel and Tax professionals).
Cash Flow
Listen to your CFO as that person should be providing you with not only the standard historical reports (Balance Sheet, Income Statement, Statement of Cash Flows) but a weekly Cash Flow Statement so you know your runway.
Budgets/Forecasts
Work with your CFO and other team member monthly to re-forecast those sales and expenses. Otherwise your Cash Flow Statement might be woefully inaccurate.
Lastly listen to your CFO when your professional finance individual ells you your budget/forecast is NOT realistic. It might be a great selling tool for investors and creditors, but at the end of the day you may not fail, i.e., run out of cash.
Failure is not only embarrassing, but could put you out of covenants with your creditor/investor. You never want your runway to be wrong (showing more time that you actually have).
Cash flow issues, schedule a brief conversation with us!
