Most growing companies hit a point where they need a part-time CFO. Here are a few signs that this time has come:
1. Your financial reports do not inspire confidence:
Your financial reports should provide timely and accurate visibility into your organization. They should be tailored to your company and industry, and include ratio analysis comparing you against others in your industry, benchmarks and key indicators (KPI’s).
2. You do not know exactly where your cash is going:
Profit does not equate to cash flow. Most CEO’s know their revenues or net income; however, most do not fully understand their company’s cash flow. Every CEO needs to understand their company’s current cash flow position, sources and uses of cash and projected cash flow in order to make better decisions.
3. Your company’s software is not being fully utilized:
In a growing organization, many times bookkeepers or accounting staff create manual processes, excel spreadsheets, or inefficient systems because they do not have the expertise or time to implement a proper accounting system. During the growth stage of a company, a qualified CFO needs to take a fresh look at the organization and identify the key accounting systems, processes and procedures that are important to the timely and efficient gathering of financial information.
4. You do not have a strong financial partner for decision making:
Your CFO should fully understand your vision for the organization and have a financial plan to achieve that vision. A CFO serves as a financial partner to the CEO in decision making. A qualified CFO should bring creative solutions to the CEO and should be a part of the company’s growth and success.
5. You are surprised:
Surprises often occur when taxes are due, leases up for renewal, or bank loans need to be renewed immediately, large insurance premiums that were unanticipated, or technology expenditures are necessary unexpectedly. This is a clear indicator that your organization may benefit from a more sophisticated financial system and a seasoned CFO. A qualified CFO is always looking into the future and bringing awareness to potential opportunities, threats, risks, and improvement options. A qualified CFO will present ideas and solutions proactively.
CFO Strategic Partners has helped over 600 growth-oriented organizations by serving as their CFO on a part-time, full-time, or as needed basis.Tags: budgets, business, Cash Flow, Cfo, financial reports, Loans, money, Tax Planning
“Our organization was navigating an intense transition involving our government funding partners and public officials. Without the help of CFOSP, we would have experienced severe financial impacts and certainly lost donor confidence.”
CEO Central Florida Historical Society
“I applaud the stellar support provided by our CFO in embracing and understanding our budget priorities and operations that entail hundreds of financial transactions each month and several millions of dollars in expenditures annually. The nature of our business is very complex, yet your firm did not shy away from the challenge of establishing accounting processes and procedures that will sustain us well into the future.”
Kissimmee Chamber of Commerce, Experience Kissimmee
“…The services they have provided have tripled my bottom line, giving us serious profit levels that have helped fund company growth…”
President, Engineering Firm
“There is no limit to the value of the collective experience that the CFO team brings to the table. Their expertise in debt management, tax reporting, cost of funds, and in-depth analysis has been more than I could have hoped for…”
CEO/President, Hotel Corporation
“Since we began working with CFO Strategic Partners, we’re in the best financial position we’ve ever been in… CFO gives my staff and myself financial peace of mind so we can focus on clients and business at hand.”
CEO, Insurance Agency
“With CFO as our partner, we’re able to see the total picture…. Through their expertise, we’re receiving the highest level of educated financial planning that will propel us into the future.”
President, Florida Architectural Firm