As your business grows it becomes more complex. Unfortunately, with that complexity you will often see errors creep into financial reports. Or, your bookkeeping is simply not keeping up with your business and providing the insights that you need to run a successful operation. When a crisis hits your business, like a global pandemic, you need someone to head up business crisis management to bring you through in one piece. As you grow, opportunities present themselves and you need someone with the depth of experience necessary to analyze the financial side of all possibilities. Do you expand? Do you remain at the same size and look for a higher profit margin? These are all reasons to add a CFO or chief financial officer to your company. But, can your business afford a CFO? The other side of the coin is, can your company not afford to have a CFO?
A CFO is not a glorified accountant but someone with the skills to help your company grow faster, improve its profitability, increase cash flow, get better leverage for bank financing, and give you better financial leadership throughout all of your operations. The way you know that your CFO is succeeding is that your bottom line gets a lot better year after year. As a rule of thumb, a CFO generally earns about 2% of overall revenue and should be doing things for your company that pay back a multiple of what they cost you in salary and benefits.
Your business will spend $225,000 or more for a full-time CFO for salary and benefits. That same CFO will be able to tell you the point at which the benefits of having a CFO on board will outweigh the expense. If we use the 2% figure for what a CFO normally earns, your business needs to have $10,000,000 in revenue in order to afford a CFO. Does that mean you need to put up with all sorts of financial problems related to the growth of your business, experience slower growth, and not have the benefits of a CFO and their experience until you hit the magic $10,000,000 revenue number? No. You can get virtual CFO services for a fraction of what you would pay for a full time CFO.
When you get virtual CFO services from Exigo Business Solutions, you get someone who oversees all of your financial operations. You will get help with making critical financial decisions in a timely manner. Your virtual CFO will find expenses that can be reduced and ways to increase profits that you had not thought of. If you have been overseeing your bookkeeping and accounting operations, your virtual CFO will take that work off of your shoulders as well.
Just like with a full-time, in-house CFO, your virtual CFO will provide help with creating and carrying through with strategic goals. You will have the benefit of advanced financial planning, cash flow management, analysis of business opportunities, budgeting, and modeling of multiple scenarios. Your analysis of new business opportunities will be more effective and getting funding for new projects will go more smoothly. To the extent that you are dealing with debts, managing and reducing your debt burden will be done more efficiently. And, with a virtual CFO working for you, your company will experience transformative changes that lead to ever-greater success.
If you are wondering if your business could use the services of a CFO, you probably do. Having a CFO oversee you bookkeeping and accounting will typically result in savings for your business. But, more importantly, the benefits you will get from advanced financial analysis will help you grow your business, your profits, and your bottom line. The transformative changes you will experience when you bring a virtual CFO into the picture will make you wonder why you waited so long to make the decision!
If you need to beef up the bookkeeping and accounting operations for your growing business and are in need of CFO-level advice and skills, contact us at Exigo Business Solutions for help.
