Hiring a Chief Financial Officer is essential to set up the financial oversight of your business. Most business owners have a hard time delegating certain responsibilities to new officers. Chief Financial Officers aren’t an exception to this rule.
As a CEO or business owner, it’s important to prioritize your business development. The starting point is handing off CFO duties as soon as your new hire joins your organization. Depending on your company’s size and operations, you may choose to delegate all or some of these duties.
Don’t know what CFO responsibilities you should hand off first? Here are the 5 duties you should consider delegating your new Chief Financial Officer.
1. Develop Financing Relationships
If you want to grow your business, it’s vital to obtain the right funding. You should prioritize handing off the duty of developing financing relationships.
Their experience and network allow them to contact the right people to make it happen. Your new officer will sit down with bank officers. They will discuss current operations, projects, and negotiating better financing terms.
2. Department Supervision
If you’re a business owner or CEO, you should delegate department supervision duties to your new officer. Depending on the size of your company, your Chief Financial Officer may supervise your Accounting, Finance, Human Resources, and IT departments.
In large organizations, Chief Financial Officers generally supervise only the Accounting and Finance departments. Delegating these supervision responsibilities right away will allow you to concentrate on promoting growth instead of your operations.
3. Design, Implement and Supervise Internal Controls
Most companies hire a Chief Financial Officer to oversee their Finance and Accounting departments. Your officer will analyze your current financial situation.
However, it’s important to delegate CFO responsibilities such as supervising internal controls. Their hands-on experience helps them design and implement the best internal controls to ensure legal and financial compliance.
4. Assess Company Performance and Drive Strategic Changes
In today’s driven market, company success depends on developing an all-around strategy. When you bring a new Chief Financial Officer onboard, you should delegate the company performance assessment and strategic development duties.
A strategic CFO is a key player to pinpoint current issues and suggest solutions to improve your internal processes. They will work hand in hand with your team to develop the best strategy to promote business growth.
5. Handling Your Company’s Liabilities
A Chief Financial Officer will handle all financial aspects of a company. You may have been in charge of paying or negotiating current company liabilities.
However, it’s important to hand off to your Chief Financial Officer the duty of overseeing these obligations. Your officer may be able to negotiate better terms on the company’s behalf to reduce these liabilities.
Is Delegating These CFO Duties the Best Approach?
While we recommend delegating the listed CFO duties, this isn’t an iron-clad formula. Every business has its own needs and priorities. When you bring a Chief Financial Officer onboard, it’s vital to ensure a flawless transition to promote company growth.
It’s important to base the assignment of CFO responsibilities on your company needs. Analyzing your operations will help you delegate the right duties and hire the best officer.
Don’t know what Chief Financial Officer can handle these responsibilities? Contact us today to hire the right expert.