Managing finances in companies – how to do it right?

Responsibilities of an outsourced Chief Financial Officer (CFO):

Budget

Building a budget for the company based on profit centers + continuous monitoring and monthly reporting on performance compared to the budget.

Benefit: The company sets business goals, determines expenditure frameworks, and through continuous monitoring ensures that it achieves its goals. Additionally, presenting various profit centers provides important information on sections that are losing, thereby reducing losses.

Banks

Credit acquisition and ongoing communication with banks.

Benefit: The finance manager knows how to speak the "language" of banks and thus manages to achieve higher credit for the company and prevent conflicts with the bank in ongoing work.

Cash Flow

Building monthly or daily cash flow forecasts for several months ahead.

Benefit: The company manages its cash flows rather than being managed by them. This prevents an unexpected cash shortage that could delay salary payments and payments to suppliers.

Inventory

Continuous monitoring and management of inventory levels.

Benefit: Reducing inventory to a size suitable for the company's operations. Every dollar reduced in the inventory means a dollar less in bank credit.

Operational Efficiency

Examination and control of company expenses and their adjustment to company operations.

Benefit: Significant financial savings.

Customers

Analysis of customer profitability, ongoing reporting on credit levels to customers, and the quality of ongoing collection.

Benefit: Identifying unprofitable customers thereby increasing the company's profitability + improving the company's cash flows.

Various Economic Analyses

Conducting various examinations for the company's CEO such as examining entry into a new market or marketing a new product.

Benefit: Professional and accurate examination for making the best decisions.

External Factors and Institutions

Serves as the contact person in the company for all financial matters with suppliers, customers, and institutions.

Benefit: A professional entity that knows how to promote the company's goals with various external factors.

Management of the Finance Department

Responsibility for all financial matters in the company and management of the accounting departments.

Benefit: Relieving the CEO for his tasks and professional management of the finance department.

Typically, a finance manager who is an employee deals with a wide range of issues unrelated to the essence of the role, unlike an outsourced finance manager who focuses on goals for which he is hired.