TBL Episode 48: Do online businesses need a CFO?

The Chief Financial Officer (CFO) is one of the most important leadership positions in an organization. But are they really necessary for most online businesses? A CFO, with the help of their finance team, is ultimately responsible for tracking, organizing, reporting, and analyzing all the financial data in a company. A business is only as successful as its profit and loss statement, and when you're doing things like managing inventory or multiple payments in and out of a business with millions of dollars on the line, you need to have someone constantly keeping track of how you're doing financially. But what about for an online business like yours? Do you need a CFO? The short answer is no…the vast majority of online businesses do not need a monthly CFO involved in their operations. There simply isn't the same amount of complexity around an online business' finances that an eight-figure business selling physical products has. There ARE, however, some instances where it makes sense to get some sort of extra help. That's why in this episode, we discuss How we are able to help our clients master their finances without the need of a CFO or financial consultant When a CFO or financial consultant can be helpful for an online business What financial roles are non-negotiable in an online business Why creating simple financial systems in your business is so important Why our clients spend far more money on their marketing, sales, and operations labor than their financial labor What we've learned over our years working with online businesses of all shapes and sizes Why it's more important for larger organizations to have more robust financial support Why some online businesses might benefit from a comptroller or other help instead of a CFO When an online business should consider making a transition with how they handle their finances