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A Chief Financial Officer (CFO) carries more responsibility than just keeping the books. In today’s business world, CFOs play a critical role in setting long-term goals, building financial resilience, and steering the company’s growth. To do all of this effectively, financial executives need trusted strategic partners. The right CFO partner (or group of allies) can offer specialized expertise, external perspectives, and support in areas where the chief financial officer cannot go it alone. Below are the most important strategic partners every CFO should have, along with their contributions to long-term success.
Legal Counsel: A Vital CFO Partner for Managing Risk and Compliance
A reliable legal team helps a CFO make decisions that stay within the law and protect the company. From handling contracts and intellectual property to managing employment law and regulatory compliance, legal experts ensure that financial decisions are aligned with current laws.
As a CFO business partner, legal professionals are particularly valuable in managing mergers and acquisitions, negotiating vendor agreements, and preparing for audits. Even a minor legal oversight can lead to significant financial consequences, so establishing a strong relationship with legal counsel is a prudent investment.
Tax Advisors: Maximizing Savings and Staying Ahead of Changes
Tax laws change frequently, and failing to stay up to date can be costly. A trusted tax advisor helps the CFO plan for tax season throughout the year, not just when deadlines roll around. They also ensure the company is taking advantage of all available deductions, credits, and incentives.
A skilled tax expert can work with a CFO as a strategic partner in various ways, such as domestic tax planning or navigating complex international tax issues. This CFO partner provides clarity and minimizes surprises. They also play an important role in helping the chief financial executive model future financial scenarios that take taxes into account.
Auditors: Supporting Transparency and Building Trust
Another CFO partner that can elevate your business by cultivating a business relationship with an external auditor. This alliance fosters trust with investors, lenders, and the board. Independent auditors verify the accuracy of financial statements and identify areas where internal controls can improve.
CFOs benefit from working with auditors who understand their industry and business model. A transparent audit process enhances decision-making, lends credibility to reports, and facilitates capital raising when needed.
Bankers and Lenders: A Strategic CFO Partner for Financial Growth
Access to capital is essential for growth, and that’s where relationships with bankers and lenders play a crucial role. These partners help the CFO explore loan options, credit lines, and investment opportunities that fit the company’s goals.
When a CFO has a strong connection with financial institutions, it’s easier to secure funding, negotiate better rates, and build a financial cushion during uncertain times. As a CFO partner, bankers can also offer insights into market trends and provide introductions to other business leaders.
Insurance Providers: Protecting Assets and Planning Ahead
Risk is a part of any business, and insurance providers help CFOs plan for the unexpected. This includes liability coverage, property insurance, cyber insurance, and even key person insurance for top executives.
An experienced insurance partner helps the CFO find the right coverage levels, avoid gaps, and plan for future risks. In the event of a crisis, these relationships ensure the company can recover without major financial damage.
IT and Cybersecurity Experts: Safeguarding Financial Data
Technology touches every part of a business, and financial data is especially sensitive. A CFO must work closely with IT and cybersecurity professionals to safeguard systems, ensure data accuracy, and prevent fraud.
Cybersecurity breaches can result in significant financial losses and legal consequences. IT partners help identify weaknesses in financial systems and support the CFO in making smart technology investments. They’re also key players during software transitions or digital upgrades.
Human Resources Leaders: Aligning Finance with Talent Strategy
While HR may seem unrelated to finance, the two departments work closely in a healthy organization. Compensation planning, benefits strategy, and workforce budgeting are all areas where HR and the CFO need to align.
When human resources collaborate with a CFO as a business partner, it enables them to forecast hiring needs, manage payroll costs, and ensure that employee benefits are both competitive and sustainable. This collaboration also supports compliance with labor laws and encourages a positive work culture that promotes employee retention.
Strategic Advisors and Consultants: Offering a Broader Perspective
Sometimes, CFOs need outside experts to help solve a specific challenge or explore a new opportunity. Strategic advisors or consultants bring industry experience, best practices, and an unbiased perspective.
These experts may specialize in M&A, cost reduction, pricing strategy, or financial transformation. They help CFOs make complex decisions with greater confidence and speed, without committing long-term resources.
Board Members and Investors: Collaborating on the Big Picture
CFOs are often the link between day-to-day operations and big-picture thinking. Building strong relationships with the board of directors and investors helps align short-term decisions with long-term goals.
These stakeholders want transparency, insight, and confidence that the company is being managed responsibly. CFOs who communicate clearly and proactively with their board are better positioned to gain support for new initiatives and strategic shifts.
Frequently Asked Questions About Strategic CFO Partnerships
What is the difference between a CFO partner and a vendor?
A CFO partner is someone who collaborates closely with the CFO to drive strategic outcomes and long-term growth. A vendor typically provides a specific product or service with limited involvement in strategic planning and decision-making. CFO partners are more integrated and trusted advisors.
How can a CFO identify when they need a new strategic partner?
Signs include gaps in expertise, slow decision-making, compliance concerns, or missed financial targets. If the CFO feels they’re doing too much alone or struggling to scale, it may be time to bring in a new partner.
Do CFOs need to build partnerships differently in small businesses versus large companies?
Yes. In smaller companies, CFOs often need partners who can wear multiple hats and provide broad support. In larger organizations, partners may be highly specialized in their areas of expertise. The selection process should reflect the company’s size, complexity, and stage of growth.
How do you evaluate the success of a CFO partnership?
A strong CFO partner should help improve decision-making, reduce risk, save time or money, or support company growth. Clear communication, responsiveness, and measurable results are all good signs that the partnership is working effectively.
Are in-house teams better than external CFO partners?
It depends on the company’s needs and budget. Some companies benefit from internal staff who have a deep understanding of the business, while others gain more from external partners with broader experience and flexible involvement. A blended approach is often the most effective.
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Matt Garrett is the Founder and Chief Executive Officer of TGG. He is a regular speaker across the country on behalf of Vistage educating business owners on the need for sound financial practices, and is Vice President of the Board of Directors of FINACA. Under Matt’s leadership, TGG has received the following recognition: INC. 5000 top companies in the U.S. five years in a row; one of “San Diego’s Fastest Growing Companies” the past four years; and is among San Diego’s “Best Places to Work.”
