As an outsourced CFO, I often write about the value I can provide to a business. Equally important for companies to understand is what tasks their CFO should not be handling.
A CFO is at the top of the finance team, so their time and expertise should be spent on strategic initiatives, not on work that accounting and finance staff could manage.
When CFOs handle tactical tasks below their pay grade, businesses waste money and talent.
Here are 5 tasks your CFO should delegate:
1. Bookkeeping - CFOs should focus on automating repetitive finance processes, not doing data entry themselves.
Do Instead: Hire a dedicated bookkeeper or controller to handle day-to-day tasks. The CFO's role should be to review books periodically to ensure no material errors exist.
2. Payroll - Even if a CFO has the bandwidth for payroll, such tactical work squanders their higher salary.
Do Instead: Use an automated payroll provider like Gusto, Zenefits or ADP instead. This also eliminates the hassle of quarterly tax filings. For sizable businesses hiring in multiple states, I'd recommend using a professional employer organization or PEO to handle payroll, benefits, HR, and compliance. While not responsible for actual payroll processing, the CFO plays a key role in evaluating potential payroll partners and PEOs. They should analyze which services suit the company's needs, along with conducting cost-benefit analyses to ensure these providers deliver maximum value and efficiency.
3. Closing the Books - While most CFOs can technically perform monthly close tasks, this task is better leveraged by a controller or accounting manager.
Do Instead: The CFO should stick to high-level tasks like financial modeling, budgeting, and forecasting.
4. Writing SOPs - Well-documented systems and processes are crucial, but not a good use of CFO time.
Do Instead: Use tools like Loom to film key processes instead. This shares institutional knowledge and avoids pulling finance leadership into project management or training.
5. Filing State Paperwork - Annual report filings should be delegated to an administrator. The CFO simply needs to provide updated company documents and review that these tasks are completed timely.
Do Instead: delegate tasks that do not require high-level financial scrutiny or strategic vision.
Protect and leverage your CFO's time properly by pushing tactical work down the finance org chart.
