Startup founders manage everything on their own—when it comes to marketing, they become social media experts; for sales, they become salespeople; to manage staff members, they take on a manager role; and when tax season approaches, they wear the accountant hat. It isn’t that they have multiple personality disorders; they are just entrepreneurs, where multitasking and efficiency are the way to go. But truth be told, one cannot sustain oneself for long if they have to do every dire task with their own hands. This can create chaos, and things can escalate pretty quickly. That’s where management and accounting teams come into play. Now, to grow your enterprise, the management head isn’t all you need to focus on; other expert personas are a must. A CFO, or Chief Financial Officer, is a professional who has the expertise and business knowledge of the present and future markets. They can assess your objectives and goals to direct a strategic pathway for your operations and finances. Plus, they can be useful in IPO, audit, or funding processes.
Accounts, or your books, are the first things that matter when doing an IPO. Contact an accountant in Mt Vernon, NY, who has worked in a similar business domain to help you out with this.
Should you hire a CFO before you plan an IPO?
Planning, fundraising, or an IPO isn’t a piece of cake; a lot of documentation and legal work is required. This also includes the proper accordance of your accounts, transactions, bank statements, debits, credits, cash flow, revenue, and taxes. The moment you go ahead with this public offering, you will realize that a lot of filing and paperwork is required. That is where you need assistance, as even a minor flaw can create a downturn in your business’s reputation and financial discrepancies. A CFO is well-versed in IPO preparation and will work diligently to help you in this complicated process.
Remember, the time you need to prepare for fundraising or the IPO event is longer than you realize. An initial public offering can take six to twelve months, depending on your business credentials and future goals. However, a startup or small business enterprise can take approximately 3 to 4 months.
CFOs adopt the mindsets of investment bankers and investors and are very good at optimizing these events for your benefit. They know what buyers and investors want to see and exactly how they want it. Professionalizing projections, financials, pipelines, forecasts, and pitch decks takes time, so get ahead by engaging a CFO in your business early. This will help you and the company become familiar with the backstory of all the financial activities, making everything solid before going on a fundraising roadshow.
A CFO will handle and oversee the paperwork, fix the finances, and alter the working processes. They will also uphold the budgeting and cash flow management procedures. Without having a financial expert like a CFO, going to an IPO can be tricky and challenging. A CFO will assist you in getting the right outcome and preparing beforehand for the IPO and future endeavors.
Do you need a full-time CFO or a fractional CFO?
A CFO can be expensive—no doubt they are skilled, talented people who head the finance and account work. But people who have good experience and the required knowledge can charge you highly for their services. That being said, it’s evident that if your business’s budget can handle this cost, then go ahead and hire a full-time CFO. If not, you can hire a virtual CFO who will provide the same services at a slightly lower cost and charge you based on working hours.
