The CFO (Chief Financial Officer) or Chief Financial Officer is one of the strategic pillars of any organization. Their role goes far beyond accounting: they are responsible for designing and executing the financial strategy that allows a company to grow, capitalize, comply with its tax obligations, and make decisions based on real data.
In this article, I explain what a CFO does, how they differ from other executives, the benefits of having one (or hiring one as an external service), and the consequences a company can face if it doesn't pay attention to its finances. If you're in Guadalajara and are growing your company, this article will interest you.
What does a CFO do?
The CFO is responsible for the financial health of the business. His or her duties include:
- Oversee accounting, treasury, budgeting, and compliance with tax obligations.
- Design the short, medium and long-term financial strategy.
- Protect the company through financial risk management.
- Establish internal controls and processes that ensure the proper use of resources.
- Generate clear financial reports for decision-making.
- Attend internal and external audits.
- Represent the company before banks, investors, tax authorities, and strategic partners.
What is the profile of a CFO?
A CFO typically has a background in accounting, management, economics, or finance. They also commonly hold postgraduate degrees or specialized certifications (such as IFRS, NIF, CPA, CMA, etc.). His experience ranges from tax and accounting issues to strategy, financial modeling, budget control, and team management.
How is a CFO different from a CEO or COO?
- CEO (Chief Executive Officer): is the CEO. He or she defines the general direction of the business, makes key decisions, and represents the company at an institutional level.
- CFO (Chief Financial Officer): is in charge of finances. His role is to analyze, plan, and control everything related to financial resources.
- COO (Chief Operating Officer): is the chief operating officer. He oversees the day-to-day execution of the business, from production to logistics and fulfillment.
Benefits of having a CFO in your company
Having a CFO, whether internal or through the "CFO as a Service" model, has concrete benefits for the stability and growth of your company:
- Informed decision-making based on real reports.
- Cash flow control to ensure daily operations.
- Tax planning that reduces risks with the SAT.
- Preparation for investors, banks or international expansion.
- Profitability analysis by product, customer or sales channel.
- Preventing financial crises through control and monitoring.
- Reduction of fraud, errors and money leaks.
What happens when a company doesn't pay attention to its finances?
Many growing companies, especially in cities like Guadalajara, focus on sales, production, or hiring, but neglect finances. The consequences can be serious:
- Lack of cash flow awareness: They sell well, but they don't have any cash available.
- Tax Administration Service fines, blocking of digital seals, or audits due to lack of fiscal control.
- Not knowing if the business is really profitable.
- Inability to access credit or raise investment.
- Poorly calculated prices and poorly defined margins.
- Total dependence on the accountant without strategic financial vision.
What is a CFO as a Service?
It's a flexible model that allows you to hire an external CFO on an hourly, project-based, or monthly basis, without having to add them to your payroll. This is ideal for small and medium-sized businesses that require strategic financial direction but can't (or don't want to) assume the fixed cost of a senior executive.
At Tax ID Mexico, based in Guadalajara, we offer the service CFO as a Service for companies that need to take control of their finances, prepare for growth, and meet all their obligations in an orderly and strategic manner.
Are you ready to take the next step?
Contact us to schedule a diagnostic session and find out if your company is financially prepared for the future.
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