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Highly trained and experienced chief financial officers (“CFO’sâ€) are difficult and expensive to acquire for even the biggest firms, so obtaining these services can be a challenge for small businesses.Â
Fortunately, accounting and bookkeeping firms like Zeros Matters Pty Ltd, now offer these services to customers at an hourly rate. This flexibility gives small businesses all the advantages of having a top experienced CFO, without the burden of a monthly overhead. Think of it a bit like having a supportive and passionate “Coach†to guide you in your business growth & profitability journey.Â
So let’s jump into the 5 key valuable areas that your CFO can assist you:Â
Accounting software is rarely able to automate an accurate cash flow analysis. A CFO is critical in assisting business owners to use the data from their online accounting software to create an accurate and meaningful cash flow report, based on how their business operates. This is critical for the long-term financial sustainability of the business and gives the owners peace of mind.Â
So often ROI calculations are made after the fact, but in good business management, they should be made to aid resource (financial & non-financial) decision-making. Consider opening a new branch, or purchasing a new delivery vehicle? A return on investment (ROI) calculation can prevent a business owner from making a costly mistake. Â
Employee performance management is an important cornerstone for retaining talent and building a profitable business. Online accounting software enables us to now calculate the individual contribution and actual cost of employees. An experienced CFO can use this data to recommend new business strategies to improve profitability or highlight key areas in the business that need to change to improve profitability.Â
Acquiring financing can be very daunting for a new business owner. Forming a strong relationship with their bank, presenting professional business plans, and investigating partnership options all require financial expertise. Your CFO can offer assistance with these tasks to lead to better financing decisions and outcomes.Â
A capable bookkeeping company using accounting software will give a business accurate, up-to-date financial reports and statements. Interpreting these statements into business strategies requires the help of experienced CFO financial expertise. Â
In summary, your CFO “Coach†ensures you do regular pulse-checks on your business while being that trusted sounding board for you as a business owner on the future of your business.
As Albert Einstein said: “If I had an hour to solve a problem, I’d spend 55 minutes thinking about the problem and 5 minutes thinking about solutions.†This is one of the best pieces of advice Albert Einstein has given us. The more time one spends understanding your business, with your CFO “ Coachâ€, the more effective the solutions to grow your business profitability. Â
