%20(1).svg "Frame (18) (1)")
.svg "Close (1)")
Running a business is exciting. You wear so many hats and learn so many skills. And as your business grows, there’s a rush of positive energy and natural trepidation. However, most businesses reach a point where they need top-level financial leadership to guide them through scaling issues, expansion, cashflow growing pains and more.
So what are the warning signs that your business needs the elevated financial expertise that an outsourced CFO can provide?
You have payroll to process, deliveries to make and customer concerns to address. With so many irons in the fire, it’s easy to let the books lie dormant. Then, before you know it, your financial data is inaccurate, and it’s hard to bring it up to date.
Also, sometimes opportunities arise in the blink of an eye. For example, you may have a chance to purchase new equipment, but you have to act fast. Without timely financials, you may not know if you can afford it, or how a large capital outlay might affect next month’s cashflow.
With an outsourced CFO, you don’t have to worry about producing accurate, timely financial data. It will be there when you need it, ironclad and correct, ready to provide the data you need to make confident financial decisions.
Speaking of cashflow, businesses sometimes find themselves in pinch situations, especially when supply chains run amok, as they have this past year.
On their own, business owners seldom find time to create cashflow projections and budgets. Some are very good at keeping running totals in their heads, like a well-practised juggling act. But as your business grows, there become too many balls to juggle and one unforeseen variable can throw the whole thing into chaos.
Let your outsourced CFO manage your cashflow. Then, without spending so much energy on income and outflows, you can focus your efforts on the tasks that only you can do.
Rapid growth is a sign of your success, but when it’s not managed carefully, it can be your undoing. How?
Your business could face a cashflow crunch as it works to meet increased demand for your products or services.
You could experience operational inefficiency that costs your company time, money and other resources.
You could outgrow your business structure and run into liability problems.
In your haste to meet increased demand, you might start receiving a lot of negative feedback due to customer service issues.
Hiring takes time, and your current employees might feel overworked as they put in long hours to keep up with rapid growth.
You might outgrow your current office, warehouse or retail space before the end of your existing leases.
Your ability to lead and manage falters as your work processes come under pressure from customer demand and internal tension.
An outsourced CFO can help you to manage your growth at a reasonable rate so you can avoid these problems. Yes, growth is good, but it should be addressed in a healthy way.
Any business should know where it is, what it wants to be, and how to get there. And the business strategy process should use analytical models that provide accurate data. But where do you get all of that data?
A solid strategic plan includes metrics that translate your vision into mission-specific points. This is critical because business strategy is ultimately about resource allocation, and financial input is vital. Your outsourced CFO can provide you with all the metrics necessary for successful strategic planning.
Numbers are numbers, right? Well, not exactly. Today’s cloud-based accounting gives you a leg-up on your competition and makes sure you’re compliant with legal and industry requirements. While you may not have the time to invest in converting your outdated accounting practices, your outsourced CFO can take care of the conversion for you.
At what point does a business hire a CFO? If you found yourself nodding your head as you read some of the warning signs above, you may need the expertise of a chief financial officer, but can you afford one?
In-house CFOs are expensive, and you might not be able to justify the expense at this point. But that doesn’t mean you have to forego CFO services altogether.
Outsourced CFO services are a flexible solution that can scale as needed. In addition to providing your business with excellent financial advice, you’ll enjoy these benefits:
At Ulton, we can provide you with the financial management advice your small business needs to thrive. Our CFO services will give you a sounding board for essential business decisions and provide the financial foundation you need to reach your business goals.
To learn more or schedule an appointment for a Business Health Check, reach out to us at Ulton. We’re here to help you succeed.
6 min read
It has long been the ATO’s practice to treat a trust’s unpaid present entitlements (“UPE”) to a company as a loan for th...
12 min read
Small businesses with an aggregated turnover of less than $50 million will be able to claim a bonus deduction equal to 2...
4 min read
From the 1 July 2023 your wages data collated from your Single Touch Payroll (STP) lodgments will be prefilled into your...
