I’m about to upset some of you. It’s not intentional – I am trying to make a point.
The word CFO is overused by many people – by business owners, CEOs, boards, and recruiters. In too many instances, the position that many people call CFO is nothing more than a Controller or Chief Accountant.
CFOs are senior financial managers who work with the CEO and other executives within the company to make business decisions. CFOs do this with information provided to them by the team that they lead.
I have heard the argument that smaller businesses do not have the depth or resources for such a CFO, and their most senior financial person is designated as the CFO. I’m not saying every business needs a Real CFO, but a person doing the accounting as a part of their required tasks is NOT a CFO. Smaller businesses may need a CFO, and there are businesses and professionals that provide excellent Part-Time CFO services to these companies.
So, what is the one question that defines whether you are a Real CFO or not?
Answer this question in the affirmative, and it’s a good chance you’re a Real CFO.
Do you earn more than a $250,000 package annually?
(Caveat: This amount applies in the USA and Canada and may need to be adjusted lower or higher based on cost of living situations which vary from place to place. This amount is a number chosen to reflect my general statement. It does not mean you are making too little, or too much.)
Are you a Real CFO? Do you have a Real CFO working for you?