Why Your Business Needs CFO Services for Balanced Growth?
Outsourcing accounting services to a financial expert not only saves your valuable time, allowing you to focus on your core competencies, but they also allow you access to a professional who can find and fix financial problems before they become too big.
CFO services help your business by providing valuable insights. It’s not that a CFO can save every sick unit or a business can’t survive without one. It’s just that with better planning and strategies coming from CFO, your business can benefit from it and become more profitable.
Who needs CFO services?
These are some of the very important tasks which can be outsourced to the virtual CFO and will help your business.
1. Business development strategy for maximizing revenue
2. Financial modeling and financial analysis
3. Budget planning and allocation
4. Monitoring your investment portfolio and other investments
5. Recording company’s financial performance over the years 6. Growth scaling
How to choose the right CFO partner?
A lot of accounting firms offer these services, but how to chose the best fit for your business?
You should look for these 6 factors in your virtual CFO partner:
The firm should have professional experience and expertise with businesses in your industry. While selecting your partner, you should look at the number of years they have been in this business and their experience with similar businesses in your industry.
Going through online ratings and reviews is a good way to know to analyse the companies’ track record. It gives a fair idea of its reputation, and answers a few questions like how good are they, about their clients etc. This information is also available on the client testimonial page where they share client stories. And if they don’t share any client stories, it raises eyebrows on their credibility.
Proper communication is required between the parties in any sort of consulting. The preferred method of communication, their regular business hours, after-hours support, reporting requirements, meetings etc. are the key aspects you should have clarity on before selecting the firm.
Make sure you know what reports your CFO partner offers to provide you and when. Sales dashboards and other dashboards, budget-to-actual reports, cash flow reports, breakeven reports; and labour summary reports are some of the reports which CFO services providers generally offer. Security Data security is a very important aspect of the service. Be sure of how the data will be protected and how will it be disposed of. Ensure the measures the CFO services provider takes to protect your data and your very important and private financial information.
Cost Benefit Analysis
Do a cost benefit analysis of taking services from a given CFO services provider. Analyse the costs involved for obtaining the services vis-à-vis the benefits you will receive from them. Choose the CFO partner which fits your budget and gives you maximum returns.
How can CFO Services benefit your business?
1. Cash Flow Forecasting
2. Budget-to-Actual Reporting and Analysis
3. Break Even Analysis
4. Labour Cost Management
5. Fixed and Variable Expense Reporting
6. Equity Planning and Debt Planning and Reduction
7. Cost Savings
8. Time Savings
9. Assistance, Expert Advice and Skill
10. Risk Reduction