What to Expect When You Outsource CFO Services
As anyone who’s ever run a small or medium-sized business knows, juggling the many roles a company leader needs to fill isn’t easy.
But if you’re like most people, you got into business because you have a great product or service to provide – not to spend your time on cash flow management, bookkeeping, and other financial tasks.
Still, that doesn’t make these things any less vital to success, despite their sometimes time-consuming and complex nature.
That’s why more and more organizations are beginning to outsource CFO services to companies that specialize in these critical tasks and allow you to focus on your core business.
So let’s take a closer look at how it all works and what you can expect.
Cash Flow Management
As some new business owners learn the hard way, there can be critical differences between when you earn money, when you get paid, and when your bills are due.
Cash flow is one of the strongest indicators of the health of your business, but ensuring money ends up where it needs to be isn’t as simple as it sounds.
And cash flow issues can cost your business real money, whether you end up having to pay financing charges or get hit with overdraft or other fees when payments don’t hit your account in time. Perhaps most importantly, not being able to promptly pay suppliers, employees, or contractors can damage your reputation and make them unwilling to collaborate with you on future projects.
An outsourced CFO will:
- Zero in on any cash flow management issues
- Build a cash projection for your business so you’re not surprised by a cash crunch
- Identify problems & provide ways for you to improve
Profit Improvement Strategies
Profit is the bottom line when running a business, both literally and figuratively – making money is what it’s all about for most companies.
But when you spend all day operating your business, it can be difficult to take the broad view and long-term view of your company and its finances.
An outsourced CFO, on the other hand, can do precisely that. As they improve cash flow, they’ll create forecasts of where your business is heading and provide guidance on how to improve profitability. In addition, your CFO will also help establish budgets to keep your organization on track toward its goals.
You may be surprised by how simple some profit improvement strategies may be and their impact on your earnings. Your outsourced CFO services will essentially be paying for themselves!
It can be easy for companies to get stuck “treading water” after a few months or years – not losing any business, but not growing much either. After all, when most of your energy goes to keeping current clients happy, keeping vendors and employees paid, and keeping the lights on, having the time and perspective to consider growth can feel impossible.
Those who outsource CFO services can take advantage of the experience of financial professionals who’ve worked with countless businesses and helped them expand. They’ve seen it all, and with that knowledge, they can help produce a strategy for your growth.
In addition, outsourced CFOs will analyze your company’s systems and processes and provide new ways to improve.
A bit of planning today can pay major dividends down the road, so why not ensure your company is pointed in the right direction for the future?
Ensuring your financial statements and books are accurate and up-to-date is no joke – especially for large organizations or those funded by outside investors.
Running afoul of compliance issues can lead to legal troubles like audits, fines, or even jail time. Even less serious lapses in keeping your books up to date can lead to poor business decisions that have long-term impacts.
Unfortunately, bookkeeping and managing financials can be complicated, even for savvy business owners.
An outside CFO will give you confidence in the accuracy of your financials through their combination of attention and experience. Your outsourced CFO services team can also answer any questions you have about your financials in plain English. And with accurate information you can rely on, you’ll be able to make better choices about your business and its future.
Ready to Outsource CFO Services?
Running your own business can be one of the most rewarding experiences of a lifetime – but it can also be one of the most stressful ones if not done correctly.
However, one of the easiest ways to simplify your life is to outsource CFO services. By taking most of the financial and bookkeeping responsibilities off your plate, you’re able to focus more closely on the parts of your business that get you out of bed every morning and make better decisions about your finances.
Plus, your outsourced CFO services team will use their valuable experience to help chart a stable, growing future for your business.
Contact PlotPath to learn more and get started on the path to a less stressful workflow today!