A key role that many small businesses fail to fill is the CFO or Chief Financial Officer. This is usually because small business owners don’t realize how important this role is, they can’t afford it, or a combination of both. A good CFO will help to keep your business from losing money. They will analyze the current strengths and weaknesses, offering corrective measures you can take to improve your bottom line. This can sometimes make all the difference between a company that runs smoothly and one that tanks within the first year. Of course, finding the funds to hire someone is not always easy, but there is a better solution.
A part-time CFO commands a much smaller salary, making it both affordable and attainable. And often, it’s all your small business or startup needs anyway. Sometimes you might have a difficult time determining if the potential CFO is the right candidate for you. What you can do is to ask some behavioral questions to get to know him better.
To save you money
A CFO takes the company’s entire financial situation, including past and present, into account. They provide financial reports for shareholders, creditors, management, and other relevant people. They also act as a treasurer, keeping track of your company’s assets and making decisions about financing, equity, and debt. Additionally, they keep track of and report the areas where your company is making money and where it is leaking it. For example, they might find that a particular product is bringing in the most revenue, but that one of the parts to make the product is expensive enough to make it unprofitable.
In that case, they would bring it to your attention and suggest finding an alternate supplier for the part or ditching the product altogether.
To save you time
Statistics show that about 20 percent of small businesses fail within the first year, and only about half make it past five years. This statistic is true for several reasons, and one of those is that the owner is usually trying to do everything alone. Sometimes, this course of action is necessary. They might be bootstrapping the company with little to no funds. But if they are not willing to delegate, they could be fighting a losing battle.
When you started your business, you probably did so because you were good at providing the service or product you offer. And unless this service is financial, that might not be your strength or the core of the business. Either way, hiring a part-time CFO as soon as you can makes the most sense. It frees you up to do the part of the job you’re good at without worrying about the day-to-day financial aspects.
To handle your growing company
In addition to finding out where your company is leaking money and pulling back on the reigns in areas that are out of control, a CFO can also help you handle a business that’s growing faster than you can handle. Business growth is a great thing and exactly what you hope for when you start one, but rapid expansion can lead to disaster if you don’t have help.
There are several roles that a CFO has that can help you in this type of transition. For example, they can tell you when it’s time to hire new positions and which ones have become unnecessary. They can help you integrate new systems and software into your business to streamline your workflow. They can navigate mergers, partnerships, and other financial dealings for you. And they can work with your CPA to manage yearly taxation and revenue procedures and mitigate risks associated with that.
Many people are intimidated by the idea of hiring a CFO. They may not know where to find one or how to make sure they’re getting a quality employee. But hiring a great part-time CFO online is easy. Simply go to the following website and choose your services: https://fullyaccountable.com/services/cfo-advisory/.