5 Ways to Know if You Need a CFO

Nearly every large business employs a CFO to manage the books, provide direction, and strategise for growth and structuring. But what about small-to medium-sized businesses? Smaller businesses certainly need orderly books and attention to compliance. How do you know when it’s time for your business to take on a CFO? Do any of the following 5 signs sound familiar?

 

1. You Need an Expert in Administration

Not everyone has the interest or background knowledge to handle bookkeeping, accounting, compliance, and budgeting. If you don’t have a leader in your company who is skilled in all of these areas, you might need a CFO. Instead of spending your time on something you don’t care for and don’t feel confident about, outsource your CFO services and focus on what you do best.

 

2. Your Books are Suffering

If you don’t have access to timely, accurate information about your business’s cash flow, budgets, payroll, and forecasts, you may have a difficult time making decisions and planning for the future. Business owners who have a hard time staying on top of their books can quickly lose control. If tracking receipts and invoices is not your thing, and if you feel that your books are a mess, it’s likely time to acquire the services of a CFO. Cashflow planning, forecasting, and budgeting are well within the skills a CFO can bring to the table.

 

3. You’re Growing Quickly!

Fast-paced growth is a good thing! But if your growth is starting to feel a little out of control, it might be time to bring in some help. Quick growth is wonderful, but it brings a host of financial challenges, including losing sight of the bigger picture. 

Concentrate on the areas of your business you need to while allowing a CFO to manage the tasks of adapting inventory, cashflow, budgets, and everything else that needs management during a period of rapid growth.

 

4. You’re Not Growing as Quickly as You’d Like

Perhaps you’re having the opposite problem. If your business is failing to grow, it may need a plan for growth. Does your business have the capital necessary for expansion? Does the growth plan make sense given current market conditions, competition, and your current projections? CFOs can help you to plan for the future in concrete, actionable ways. They can create scalable finance structuring, budgets, cashflow projections, and plans to meet compliance obligations.

 

5. You’re Ready to Exit

The day you realise that you want to someday exit your business, you start to look at things differently. Is your business organised and structured in a way that it could be handed off to someone else? Are you compliant with local laws and industry standards? Are your finances solid for the foreseeable future?

Whether you’re hoping to retire, sell up, or take a long-term leave because of health reasons, it’s best to prepare for your exit long before you’re ready. CFOs are adept at creating and handling exit plans. They can see the big picture of how finances work, how to address the risks of transition, and how to sync up all the legal agreements that create the transition’s framework.

 

CFO Services

CFO services don’t have to be handled by a full-time, on-the-payroll employee. In fact, many small- to mid-sized businesses outsource CFO services so they get just what they need without paying for expertise and time they don’t need yet.

 

Outsourced CFO

An outsourced CFO can help your business to be more scalable and efficient. Your outsourced CFO can grow with your business’s needs and give you the talent of a CFO, but only as much as you need. 

An outsourced CFO can help you to know if you need to take on additional staff, whether you need to change your cashflow, whether your current pricing is advantageous, and if you need to cut costs. Without a CFO, you can feel like you’re walking in the dark, trying to feel your way to financial success. Switch on the lights by outsourcing CFO services, and get an expert on your side who can help you to create a plan and achieve your goals.

Learn more about how outsourced CFO services can help you to achieve your goals. Contact us at Altus Financial. 

For more information on what an outsourced CFO service can bring to your business, download your copy of our popular free CFO eGuide below: