10 Reasons Small Businesses Needs A CFO

September 08, 2015

10 Reasons Small Businesses Needs A CFO

Larger businesses have Chief Financial Officer – CFO on staff, but what about CFO Services for SME ? Obviously, small or large, businesses very well understands how much crucial the CFO of role is when it comes to business performance.

The CFO’s role in the business is:

  • Helps the management in creating sound financial plans and forecasts
  • He/she ensures cash inflows, and outflows are managed well so that businesses never has a budget short come, or requires borrowing
  • He/she keeps a close eye on various financial trends and numbers
  • Helps the management taking preventive measures when required
  • Offers solid information on the range of key performance indicators to the business decisions makers
  • Reports on revenues are achieved comparing the targets

Why would I need outsourced CFO services?  Wearing multiple hats  in the business, hinders the core activities of the business especially small-medium businesses. Since, affordability is a question, outsourcing CFO services would be a good option to help run the business without any glitches.


Image courtesy:orlandotaxfirm.com

The tipping point: A CFO usually takes up the responsibility for various tasks like financial analysis, budgets, accounts, along with overseeing other things like health insurance, legal issues, accounts receivables, banking etc.

When the CEO of the company is distracted from the critical revenue generating activities to handle the financial part, it is time for the CFO to come aboard and take the reins.

No matter how small or start-up company is yours, your business can benefit from having a CFO to help organize the financial matters. Reasons for small business failures comes down to one boiling point; failing to understand the financial matters and tracking the performance. However, hiring one does not become crucial until the company reaches the tipping point – often 10 million to 15 million in revenues, as per Mr. Masarek.

Could your company use temporary outsourcing CFO help?

The primary reason companies hesitate is because of the cost involved with it. CFO’s doesn’t come in affordable salaries. They are supposed to be paid 6 figure salaries hence outsourcing CFO services make sense.

Small businesses may not have appropriate resources to hire a senior financial personnel like CFO, despite needing access to the level of expertise. An outsourcing CFO Management Services can offer the level of expertise. An outsourced CFO will be working with you to build and manage business, ensuring that your financial resources remains streamlined and available when the business needs it.

Here are 10 reasons small business needs CFO:

1.Your business needs a better understanding of financial matters:

In this cut throat competition, controlling the cost of sales is the primary aspect to the success of the business. For the better understanding, you will require an outsourced CFO that takes care of the quality control, negotiations, customer service for the best possible payment terms with the vendors.

2. Your business wants to increase the profits quickly:

Especially the small businesses have this mindset of multiplying their profits in a short term. Well, the idea to make it big is always appealing, but only if it is done correctly. To increase profits isn’t a tom-dick-harry’s job, it requires an experienced CFO who has the knowledge and expertise to take the business to the next level.

3. Cash flow is getting tighter and there is a big contract on the horizon:

When your cash flow is getting tighter in business, and there is a bigger contract on the horizon that you have handled before, you require hiring outsourced CFO services. There comes a time when the cash may be tight or have been invested elsewhere, with the right guideline and fiscal advice of an outsourced CFO you will be able to manage well strengthening your position with the potential vendor.

4. You need to have an instant access to your business financial position:

It seems to be Greek for the business owners to prepare monthly financial plans, cash flow and balance sheet, let alone understanding it. Having an outsourced financial consultant   make sense to convert those numbers in a plain language for a better understanding.

5. You are challenged with the understanding your company’s break even analysis:

A business owner requires a cash flow projection to cover the expenses. An outsourced CFO will help you to know your monthly expenses both fixed and variable costs to help in setting monthly goals and sales expectations.

6. You want to know if your business is projected to succeed:

Small business needs to know that if the business is netting the an adequate profit, or requires adjustments to assure that the business is worth time and energy. An outsourced CFO services with its business fiscal expertise assists you in turning your business in a profitable direction.

7. You want to make financial decisions on solid advice:

The majority of the business owners doesn’t have expert level of financial knowledge. They usually make their decisions on a gut reactions – not every time it clicks. An outsourced CFO will help you in creating a solid foundation to make the right decisions.

8. You need your business to build credibility:

Investors appreciates and values a senior expert and experienced CFO’s contribution. They know that a good CFO is a trusted adviser and will improve the company’s performance.

9. You want your business gaining investors:

Companies that meet or exceeds the plan, head accounts well and manages cash have a history of delivering accurate on time financials. They are highly regarded by the investors. It is easier to get additional investors and making the present one happy by hiring a professional outsourced CFO services India.

10. There is no time to keep up with the technology advancements and financial trends that are applicable to your business:

Bringing in an extra efficient,  and maximum protection to your business is a must thing. If you have just started, you have a little time or no time to think on other aspects that are currently trending in your business segment. By hiring an outsourced CFO services, it ensures that your business practices the new trends and stays ahead in the competition.


Image courtesy:optimalcfo.com

Think about today – how could a CFO can change your business for better?

By helping with your financial planning and achieving next period targets, and by being sound board for you as your business strive to meet to meet the targets, ELEVATE’S CFO  services gives support gives you a crystal clear focus for what you need to be done to remain ahead in your financial matters.

Review the latest news on Elevate: http://elv-cms.cloudapp.net/media/documents/VPC-Credit-Facility-Announcement_2015-27-08.pdf

ELEVATE’s outsourcing CFO services rolls up the sleeves and works with you in management meetings throughout the year on:

  • Profitability: Identifying the key drivers of the profits and focusing on the same
  • Cash flow: Efficient management of your business’s cash, how to provide cash for savings and investing in the growth
  • Taxation management: Staying on the top of the risk and taxation issues
  • Financial advice: Proactively watching financial performance, and position of the company and investigating concerns and recommending appropriate actions.

Image courtesy:cfoinnovation.com

September 08, 2015

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