It may be difficult for small businesses to justify a full-time CFO. Imagine getting all the benefits of a sophisticated financial mind without all the added costs. Say hello to the part-time CFO! This is one of the many benefits of having access to remote companies. It is now easier than ever to find the skill sets your business needs to grow and prosper, without being tied into a full-time salary.
What to Expect
Expect your CFO to dive right in and learn the ins and out of your business. It is crucial to understand the financial issues that your company is facing to turn things around. CFO’s are intelligent business executives that know all the right questions to ask. The intel gathered will be used to plan a course of action to maximize profit, establish productive and efficient workflows, and give your business a distinct advantage amongst competitors.
Receivables and Payables
Your CFO will get a handle on who pays late, which clients you should charge more too, and which vendors try to overcharge. These aspects need to be closely monitored to ensure proper cash flow management. Often times if clients can pay late without repercussions, they will. You need someone on your team that is willing to track down clients and keep debts in front of them. This ensures ample funds to pay bills on time and results in less late fees. Over time, these fees can cause a financial burden and tarnish valuable vendor relationships.
Break-Even Point
The amount of goods or services you have to sell to cover your ongoing expenses is considered your break-even point. This point is crucial to any business plan, yet often overlooked. Having someone on your team that can finagle this fine line will result in better business decisions and increased profits.
Increased Margins
With a keen eye for numbers, a CFO is a specialist at increasing profit margins. By setting up your accounts to be effectively monitored and analyzed, small details often missed can now be taken advantage of. When dealing with large profits, a 1% increase margin increase can mean thousands of dollars worth of added income.
For more information: What to Expect from a Part-Time CFO