I work with a variety of clients, who may have great bookkeepers, but their operations grow beyond that of basic bookkeeping. If you have a fast-growing business or have large aspirations, there are five main reasons you should consider having a part-time CFO.
- Keep fixed costs low – cash flow is always an issue for every start-up or small business. Hiring a part-time CFO allows you to keep your costs low and scale your services as you scale your business. Not only will you save on the salary (including source deductions and benefits) of a full time CFO but you also save on overhead costs (office space, computers, furniture….).
- Make informed decisions – Part-time CFO/Controller’s focus on your business to provide advice on systems implementation (including process automation), cash flow management, financial reporting, financing and strategy. They help management understand the information so that they can make better decisions for the business.
- Plan for disasters – A part-time CFO will help you identify issues early on. For example, they will help you identify a cash crunch you will face during a seasonal market dip. Identifying this in advance will help you have the time to secure a short-term line of credit to get you through the period and still meet your payroll and other obligations. This will help keep relationships with suppliers and employees strong for the periods when you need them on your team (growth phase).
- Accurate information – having a CFO overseeing your accounts will help ensure the bookkeeping is done correctly by having a double check. A CFO may be a part of the process or simply overseeing the bookkeepers work. Having this review can ensure the accuracy of the information. This will make the quality of the information coming out much better which is critical in making quality decisions about your next steps.
Virtual Heights Accounting is a CPA firm that focuses on process automation using technology. We offer year end, tax, CFO, controller and bookkeeping services. If you’re looking for CFO or another business accounting service, drop us an email and we can set up a free consultation and provide a custom quote. http://vhaccounting.ca/contact-us/