When you think about your business in five years from now, what do you see? What do you see in ten years or even next year?
- Is your revenue growth and profitability on track to take your company to your next milestone?
- Are you forecasting and achieving the results you really want?
- What are your growth goals and how will you fund them?
If you find yourself facing uncertainty to some of these questions – you are not alone.
All businesses can benefit from a guide – an advisor providing higher level financial and operational advice that you may not be getting from your current staff or tax preparer. A fractional or outsourced CFO has seen similar issues you face in other businesses. They walk alongside you, helping you navigate the road ahead so you can maximize opportunities and reduce risk along the way. Even if you don’t feel you need nor can afford a full-time CFO, that guidance exists by outsourcing your financial leadership role. If you’re unsure how a fractional CFO can help your company, consider these five ways a CFO can provide immediate value and results.
Improving Profitability
People, processes and technology all link to the ability of a company to be
profitable. A CFO will identify Key Performance Indicators and benchmarks; and
build methods to track and report them consistently so you can better track and
then improve profitability. By analyzing your employee productivity, monitoring
redundant tasks, controlling costs, maximizing technological functionality and
initiating profitable pricing strategies, you can see improvements to the
bottom line.
Managing Cash Flow
A CFO will put an effective cash management system in place. By
managing the cash cycle, the company improves collections, pricing, and terms;
all adding to increased liquidity. This includes managing capital, debt
obligations, and ensures the ability to invest in new projects. A CFO can create
a solid forecast, so you avoid being blindsided
by the cash flow problems that accompany rapid growth. Cash flow
projections prepared by the CFO provide a means for the management of cash,
which is the lifeblood of a company.
Providing a Sounding Board for Decision-Making
An experienced and effective CFO brings financial insights and leadership to help the company maximize profits by increasing cash flow. By using financial data and insights, the CFO will provide clarity on where to best make investments, expand the business, roll out new products and/or service offerings— all essential to maximize growth potential. A CFO can provide objective and expert financial advice while building clarity around goals and action-plans to forecast and meet those financial goals.
Funding Growth
An outsourced CFO usually has developed and maintains strong relationships with lenders. This is advantageous for business owners seeking to obtain a loan to fund growth or extend a line of credit. A CFO brings knowledge of how to build your business lending profile by educating you about factors that banks consider when seeking a loan. With the knowledge of different lending options, a CFO can help you compare all options and expand your banking relationships to prepare and secure the right financing needed to help you grow your business.
Mitigating
& Managing Risk
Risk-taking is a key part of the growth of any business. But not understanding the risks your company
faces can bring your company to its knees. CFOs, given their expanded role in
establishing and executing strategy, have become well positioned to help ensure
that a company’s risks are identified, assessed, managed, and integrated into
the corporate strategy. A CFO has a
keen understanding of the scope of risks that the organization faces by
identifying the risks and classifying them by risk type (financial, compliance,
debt, liquidity, operational and security risk.) A CFO will evaluate each of
the risks, creating estimates of the probability of an occurrence for each as
well as an assessment of risk impact. They can provide your organization with
processes and procedures for reporting of risk exposures that can act as early
warning signals.
Your Trusted CFO
There comes a time for many companies when you
need financial advice and services over and above what you are getting from
your staff. AETucker Consulting serves
owners and management of small to midsize privately held companies to develop
and implement strategy, improve cash flows, increase company value and provide
successful business transitions when the time comes.
Where are you in your business journey?
Let’s start the conversation today on ways I can provide strategic financial guidance and help your business grow. Let’s schedule a discussion that convenient for you. Schedule–>
Andrew Tucker, CPA, CGMA, MBA
AETuckerConsulting, LLC,
704-651-2216
Andrew@aetuckerconsulting.com