Is it time for your business to invest in a Chief Financial Officer (CFO)? Many entrepreneurs wait far too long because they assume that their company should be generating a specific amount of revenue first. They don’t realize that bringing an experienced CFO on board early can help them make bigger profits by managing their finances more efficiently. Here are three benefits of having a CFO for your business:
- CFOs make sure business owners are wisely managing their finances by reviewing the overall financial health of the company.
The most basic service CFOs offer is providing regular and thorough financial statements, which are mandatory for all businesses. By constantly assessing how money moves throughout your company, a CFO can give financial guidance while you focus on leading your staff and increasing sales.
- CFOs optimize cash flow so that owners don’t come up short while finding ways to shorten up the time it takes to collect payments from customers.
Have your sales been increasing while your cash hasn’t? A CFO can figure out the source of your shortfalls to determine what kind of changes are needed in your business model to see positive cash flow. They can also help you to better utilize your line of credit to optimize your profits.
- CFOs can help owners plan to use financial resources to fuel the company’s growth.
The old adage, “If your company isn’t growing, it’s dying,” is true, so you always need to be planning for tomorrow. The first step to achieving growth is setting goals, which a CFO can help you with. Perhaps you want to achieve a specific level of revenues, total assets or net worth. A CFO can give you advice on pricing and marketing strategies, staffing levels, compensation, product mix and tax issues to steer your growth plan.
In addition to these service, CFOs help owners develop and manage banking relationships, which are pivotal to growing your business. Negotiating with banks and lenders can take a lot of your time that would be better spent actually running your company, so a CFO can take care of those details while you direct your energy to more pertinent matters. Having a professional CFO will also make your company look more respectable to lenders, so you’re likely to get better deals.
Some businesses require a fulltime CFO, however, many business owners benefit by working with a CFO for one or two days per week. This can stretch your budget while helping your business realize significant benefits.
If you would like to learn more about how a CFO can help your business, contact me at 203-545-6186 or firstname.lastname@example.org. Investing in a CFO today is the best way to ensure that your business will be around tomorrow.