Normally a small company will have one Chief Financial Officer (CFO) who will have a wide range of responsibilities, primarily focused on managing and optimizing a company's financial performance. This includes overseeing financial planning, budgeting, forecasting, and reporting, as well as ensuring compliance with financial regulations.
That CFO will lead a small team and will also play a crucial strategic advisory role, working with the CEO and other directors to guide the company's financial direction.
I have worked with 2 or more CFOs in organisations or groups that have a wide business portfolio and several offshore assets where a company's structure or needs necessitate specialized expertise. One CFO might focus on internal financial reporting and compliance, while the other handles external reporting, investor relations, and M&A activities. In these cases, the companies are very well established and often have well-developed legal, HR and marketing teams employed within as well.VTX however, is not at this level.
Having recently taken my team through an international compliance accreditation process, we managed with just 2 finance officers and a very pregnant CFO. With normal day to day operations and a bevy of inspections, we coped well enough.
Splitting the jobs between 2 CFOs is somewhat risky if the boundaries and roles are not clearly defined. Personally, I don’t see the justification when 1 CFO and outsourcing also works.
The concerns I would be addressing in such an appointment, include who becomes the senior go-to person in a risk management situation, are there any overlapping responsibilities, are the roles clearly defined and how well communication lines are established. Finally is it good allocation of funds to have the extra person?
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