When Should a Small Business Should Get a CFO’s Advice?

Hiring a CFO with their financial expertise could be one of the best decisions you ever make.

Tapping into the experience of a proven CFO can be one of the smartest moves a small business owner can make. Post-Covid, many businesses are wanting to rethink their business and staffing strategies. Perhaps yours is one of those, and you are wondering whether a CFO could be of help or merely just another cost.

You likely don’t need a full time CFO unless you are approaching 100 employees. But getting a thin slice of a CFO’s time could provide a strong ROI.

5 business situations where a part time CFO could add some real value and even save your business:

1. Cashflow Challenges
Cashflow problems and financial uncertainties are like oxygen.  If there is a problem with supply it becomes the only thing people think about.  Rather than try to solve the problem yourself, you could bring in a virtual CFO to inject their skills and experience into your financial challenges.  As Albert Einstein famously said, “We cannot solve our problems with the same level of thinking that created them.”  You may feel you can’t afford it but frequently you can’t afford not to.

2. Improve Management Team’s Focus & Accountability
What gets measured gets managed.  Often times, management teams lose some accountability when company performance isn’t measured and reported on objectively.  A strong CFO can help identify and create an effective level of company performance monitoring that includes a practical balance of financial and non-financial performance numbers.  If you feel your management meetings lack sufficient traction and accountability a CFO can design simple reports to shine a light on the critical areas of performance.

3. Looking for investors or better banking relationships
Investors and Bankers are going to expect your business’ finances to be in good order and well controlled. A strong CFO will add credibility to your business by preparing more professional financials. The result will likely be more attractive to investors and/or bankers.

4. Current business climate
As a result of the current economic environment, there are many varied challenges so quick, decisive and educated decisions around the financial and strategic management of your business during these uncertain times is imperative. A CFO can add this depth of knowledge at the executive level of your business at a speed in which the market requires it.

5. Rapid growth
When a business is growing quickly is the time you should consider bringing on a part time CFO. Cashflow is a critical aspect to stay on top of as a company spends more money to make more money. An effective CFO will have pragmatic approach to monitoring your finances and should have ten times the level of experience and know how for doing so.  Business leaders are not typically trained as CFO’s.  Even when they are the business in that phase requires all of their attention and the necessary financial work is often deferred – forever.  .

We hope this article on when and how a part time CFO could be an option to help with your business.  Let us know your thoughts and if you have observed other use cases for when a CFO could provide clear and immediate benefit to SMB’s.

Better Financial Control (BFC) delivers strategies that empower our clients’ success and have developed an effective outsourcing strategy for bookkeepers, payroll specialists, management accountants, tax accountants, Financial Controllers and CFO’s where the total monthly cost is less than what our clients were paying just for their bookkeeper.

Our team consists of highly talented and experienced senior finance executives who each have a substantial commercial background and have worked with various sized businesses across a wide range of industries and in a multitude of countries.

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