The fact is that every business needs accurate and timely financial reporting. Every business needs accurate financial forecasts. Both of these tasks may be easier when a company is small. But, many small businesses (100 or fewer employees) need help as they grow, expand their product and service lines, and seek funding for further growth. Knowing which metrics are important in your business and being able to set up a system to track them is crucial to success for all businesses large and small. In short, everyone needs CFO skills. But not everyone needs a full time CFO.
A CFO oversees your bookkeeping activities. With a CFO in charge, your bookkeeping will not only be done on time and accurately but will provide you with the insights you need. Whether you are looking to increase profits, reduce expenses, set up effective systems for managing business problems, or are working on a plan to grow your business, the skill set that CFO brings to the table can make the difference between success and failure.
As a rule of thumb, you can afford a $225,000-a-year in-house CFO if your company’s revenue stream is at or above $10,000,000. The benefits that a company gains from having a financial expert on board should be several times what they are paid and, over the years, a multiple of the value of the company. Thus the return on investment for having a chief financial officer can be hundreds of percent of their salary and benefits. Does this mean that your $200,000-a-year company does not need or will not benefit from the skills and experience of a CFO? No. And, there is a way you can take advantage of a CFO at almost any level for your business.
When you outsource the job of CFO to us at Exigo Business Solutions, you get a virtual CFO. This is a real person, an accountant and a CPA with years of experience to the level of a CFO for a large corporation. However, this CFO works part time for you instead of full time for a Fortune 500 company. You get as much help as you need and will typically see savings in your operations, increases in efficiency and profits, and faster growth for your business.
We often tell our clients that the reason to outsource their bookkeeping is to get the job done faster and more accurately but also to gain insights from advanced reports. The same is even more so when you have a virtual CFO at your disposal. Very often in business, small things at critical moments can make all the difference between success and failure. Having an experienced accountant with CFO skills available to oversee your bookkeeping and accounting operations is a huge plus. Having that same person on hand for critical decision making can make all the difference in the world.
For more information about how having a virtual CFO can help your business, contact us at Exigo Business Solutions for help.
