Three Reasons Why Your Business Needs a Part-Time CFO

Posted on July 24th, 2018

Achieving measurable growth and stability is increasingly difficult in today’s fast-paced economy. Whether you own a small shop or operate a burgeoning IT business, staying on top of changing trends is crucial to remain profitable. For many owners, the challenge of effectively managing daily activities, balancing the books, and looking out for new opportunities is too much to handle. A part-time CFO can be a partner to owners who are struggling to juggle too many roles and burdensome tasks, at a fraction of the cost of a full-time CFO.

Supporting Long-Term Stability

Businesses require stability to achieve growth and maximize profits, but many factors impact a business owner’s ability to create balance. A part-time CFO can determine these factors and implement new policies or systems that reduce human error or increase an owner’s financial awareness. Internal factors such as imbalanced accounts, irregular payroll function, poorly regulated internal controls, or ineffective inventory systems are often the cause of instability. External influences can also throw a wrench in an otherwise efficient operation. These include tax law changes, cultural and economic trends, and fluctuating prices for goods and services. With an experienced part-time CFO providing expert advice and balancing accounts, your business can adapt more appropriately to all kinds of factors and stay ahead of the competition.

Improving your Bottom Line

Sometimes all a business needs is an outside perspective. An independent CFO can look at both your big picture goals and the details of your daily functions to see how they line up. If your business efficiency is not optimized, or your financial data is not accurate, you may be hindered in achieving your grand vision. Many owners undervalue the necessity of thorough fiscal data, which is the key to understanding what can be done to make the business more profitable. CFOs develop reporting system that detail your business performance, revealing where owners need to tweak processes or adjust their goals to match figures.

Taking Advantage of New Opportunities

When successful businesses have achieved stability, or have matured to a certain point, it may be time to acquire a new product or to sell the operation. A CFO can perform many essential tasks for these complex business activities, including due-diligence, valuation, and merger facilitation. A dedicated CFO can ensure the merger or acquisition is done properly and effectively to keep your business running smoothly. Valuation assistance helps owners understand the full value of a business and can reveal factors such as debt and profit and loss.

Call Davis & Associates CPA’s Your Expert CFO in Bonita Springs, Naples, and Cape Coral

John J. Davis and Stephen J. Minosky have extensive experience providing CFO services. Whether you need this role filled for a large project, merger, or to achieve your fiscal goals, our team can deliver.

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