Why Technical Innovation is a Financial Necessity
One of the hallmarks of a successful company is technical innovation. Innovation can boost market share, improve a company’s competitive advantage, and boost revenues. While exciting, though, innovation isn’t without cost. Small companies without chief financial officers (CFOs) can get so caught up in the thrill of creating new technology and adopting new processes that they lose sight of the bottom line. By retaining an outsourced CFO, however, those companies can monitor risks and manage finances while encouraging innovation.
Resisting innovation can be a death sentence for a company – everyone has heard stories or passed the empty former offices of businesses that kept “doing things the old way” until they weren’t in business any more. And innovation involves more than just the products or services a company provides. It means looking creatively at all aspects of the business, from sourcing materials to delivering the product to end consumers. A CFO can help your company look at the “big picture,” realizing that short-term expenses can yield long-term benefits. A CFO’s role is to help the company understand where innovation can lead to from a finance and profitability perspective.
An outsourced CFO can help your company map its entire production cycle, looking for bottlenecks or excess capacity that could be better utilized. He or she can also look for innovative ways to shorten the sales cycle or manage working capital more effectively. Shared services, outsourcing, and automation are recommendations that a CFO might make to improve functional efficiency and boost the bottom line.
Another critical innovation point for CFOs is big data, the vast collection of information and data sets that technology now makes available. CFOs use year-over-year financial data to spot trends, leveraging data to improve business functions. By compiling invoicing reports, payment statements, customer behavior, and other data sets, a CFO can help control accounts receivable, reduce fraud and loss, or increase customer retention.
An outsourced CFO resource can help your business understand the intersection of old and new technology and help you structure your company to take advantage of innovation. For a free analysis of your company, call CFO Strategic Partners at 407-426-8288. Our financial professionals can help you understand the technological tools available to help your business reach its full potential.