Businesses choose to engage a Virtual CFO for a multitude of reasons. Among some of the most common of these are to achieve better cash flow management, strategy and direction, leadership, productivity, financial reporting or analysis, informed decision making and diversified access to resources.
It is tempting for a business to look to hire an accounting all-rounder, who can manage an assortment of financial tasks, such as, taxation, compliance, reporting, accounting, and business strategy. However finding an accountant who can manage all aspects of the financial mix is both rare and expensive. What is the difference between a CFO and an accountant, and how will adding a CFO Service help.
Over the past two years, many industries were financially impacted by Covid-19, in ways nobody could possibly have predicted. However, as in the last financial crisis in 2007-08, the best performing companies looked to improve productivity, which provided the capacity to grow quickly once into the recovery period.
There is no doubt that hiring a full time Chief Financial Officer (CFO) makes complete sense when a business reaches a certain size or an advanced level of complexity in structure. There is also no question that a CFO occupies a crucial role in growing a business’ profitability, especially in the longer term. The decision facing business owners, is when is the right time to bring on a full-time CFO or whether there are benefits to having a part-time or outsourced CFO until a full-time CFO role stacks up financially.
Most small to medium sized businesses (SMB's), whatever their business sector or the types of products they produce, or services they offer, face the same challenge at some point in their lifecycle. They all need help with their financial reporting. Entrepreneurs who start businesses are fantastic at identifying opportunities and the need for new products and services and can talk for hours about what they are working on and the opportunities they have identified. However, when faced with financial reporting and compliance, they are often uninterested and lack understanding.
Over the past two years, many industries have been financially impacted by the Covid-19, in ways nobody could possibly have predicted. However, as in the last financial crisis in 2007-08, the best performing companies looked to improve productivity, which provided the capacity to grow quickly once into the recovery period.
The reason why a business should have an outsourced CFO is that they offer ‘strategic financial insight and manoeuvring that leads to increased revenue, without the need to pay a full-time CFO salary.’
Outsourcing CFO services will give companies all the benefits of having a highly skilled and experienced Chief Financial Officer (CFO) on their team, but at a much-reduced cost.
SME’s can get caught up in the excitement an acquisition opportunity presents, but often the process can be time consuming, a drain on resources and very costly if you don’t manage the process properly up front.
Effectively managed accounting teams invariably make a significant difference to the general performance of a business. With integrity of the accounting function comes reliable and timely financial and management information.
Join 10,000 other people and get answers on how to improve your business, financials, human resources and more.
©2024 CFO Australia. All rights reserved. Legal & Privacy