You May Not Have a CFO, But Your Company Still has CFO Duties

It’s True. Whether you have a CFO or not, your company still has many “CFO like” responsibilities. This video was created to:

1. Help owners, CEOs, and other business leaders understand and drive more value from your “CFO” function, even if your company’s org chart doesn’t include the CFO title.
   
2. Provide professional service firms who work with CFOs a framework to improve client understanding and identify new ways to serve your clients.

Even if your company doesn’t have a Chief Financial Officer (CFO), the duties and responsibilities of a CFO are still present and critical to your organization’s success. Steve Rosvold, host of CFO.University, breaks down how business owners and financial service providers can approach these key areas—ensuring that your company’s financial foundation is as strong as possible.

Understanding CFO Duties: More Than Just a Title

Every business, regardless of size, faces responsibilities that typically fall under a CFO’s purview. These include accounting, financial planning, managing cash, and leadership—even in companies lacking a formal CFO position. Often, these duties are shared between the business owner, staff, advisors, and vendors. But without a clear structure, some vital needs may be overlooked or ignored.

The Four Pillars of the CFO Role

Steve introduces the concept of four core pillars that comprise the CFO role:

1. The Accounting Pillar

This pillar covers governance, internal controls, transaction recording, and reporting:

• Governance: Ensuring management operates according to board directives.
• Internal Controls: Safeguarding assets through proper control systems.
• Transaction Recording: Establishing efficient systems for capturing business activities accurately, impacting the general ledger.
• Reporting: Generating financial, managerial, regulatory, and compliance reports.

2. The Finance Pillar

The finance pillar leverages solid accounting to provide forward-looking guidance:

• Business Planning: Integrating financial estimates into strategic and annual planning.
• Forecasts: Using projections to bridge the gap between budgets and real results, keeping
• Investment Analysis: Evaluating capital allocation, projects, acquisitions, and divestitures—crucial for linking strategy to financial performance.

3. The Treasury Pillar

Treasury focuses on managing cash and the complexities that come with external funding:

• Cash Management: Maintaining strong systems for liquidity—essential for business stability.
• Funding: Preparing the company to raise and manage third-party money (debt or equity).
• Risk Management: Adjusting risk protocols and internal controls when outside investors or lenders are involved.

4. The Leadership Pillar

Leadership is the glue binding the other pillars:

• Self-Awareness: Bridging the gap between self-perception and how others perceive you.
• Team Building: Creating trusted, safe spaces for your team—where respectful debate leads to real growth
• Strategy and Culture: Inspiring the organization through a clear vision and fostering a culture of sustainability

The “Plus” Pillar: Supporting CFO Success

Beyond the four foundational pillars, Steve highlights a fifth “plus” area encompassing support functions like staff development, technology, and career management:

• Staff & Talent Development: Investing in programs that align with future needs.
• Technology: Identifying and implementing technology with the best return on investment, whether for efficiency or better insights.
• Career Management: Encouraging finance professionals to nurture their own growth and career path.

Where to Find Expertise If You Don’t Have It In-House

Steve provides practical advice for supplementing internal expertise:

• Accounting: Engage corporate attorneys (governance), forensic accountants (controls), bookkeepers and tech experts (recording), and CPAs or interim controllers (reporting).
• Finance: Rely on financial analysts (forecasting), strategic advisers or interim CFOs (strategy and budgeting), and FP&A professionals (investment analysis).
• Treasury: Work with bankers (cash and funding), investment bankers (complex funding), and insurance advisors or risk experts (risk management).
• Leadership: Seek personal and team building coaches, as well as experienced mentors.
• Plus Functions: Partner with HR firms, interim CIOs, and career coaches.

Toolsand Resources for Business Owners

To help monitor these CFO pillars within your business, Steve recommends the “Accounting, Finance, and Treasury Assessment” available at www.CFO.University under the Tools tab. For career development, explore our Library, and stay updated with The Balance Digest newsletter.

Conclusion: Embrace the CFO Mindset—With or Without the Title

No matter your company’s size or structure, CFO responsibilities are vital for growth and sustainability. By understanding and addressing these pillars—even without a formal CFO—you can drive more value for your business, build a solid foundation for success, and foster a thriving, dynamic organization.

---

Identify your path to CFO success by taking our CFO Readiness Assessmentᵀᴹ.

Become a Member today and get 30% off on-demand courses and tools!

For the most up to date and relevant accounting, finance, treasury and leadership headlines all in one place subscribe to The Balanced Digest.

Follow us on Linkedin!