Do You Need a CFO?

Dave Cain | June 8th, 2012

Outsourced CFO Services Support Small Businesses

Do you ever feel like you can’t seem to get your arms around costs? If so, you could probably benefit from the skills of a CFO. The following are other signs that you may need a CFO:

  • You regularly bounce checks.
  • You don’t have immediate access to financial information when your banker asks for it.
  • Your budget and forecasting is lacking.
  • As an owner, you have your hands in too many things to focus properly on your finances.
  • You can’t answer the question, “How much money did you make yesterday?”

Most small business owners face at least one of these issues; however, they don’t have the need or resources for a full-time CFO. These owners often rely on a controller, bookkeeper or office manager to manage the internal accounting function.

Sound familiar? If so, you need to recognize that even though these people can do an excellent job for you, a CFO can bring additional skills to the table. You’ll probably wonder how you ever got by without this kind of person.

Part-time CFO Services

And the good news is that you can get the knowledge of a CFO on a part-time basis by outsourcing this function. In as little as a few hours a month, you can have a CFO with 20 or more years of experience help you:

  1. Build internal cash flow – cash flow from operation, rolling cash flow projections and banking relationships.
  2. Improve operations – continuous budgeting and forecasting, flash reporting, job costing, asset utilization.
  3. Strengthen accounting functions – internal systems and processes, transaction efficiency, internal financial reporting.
  4. Manage revenue – profitability, revenue forecasting, pricing models, growth indicators, revenue generation strategy.

You’re probably asking yourself what type of businesses outsource CFO responsibilities? Well, they are privately held businesses that range from pre-revenue (start-ups) to companies with $100 million in revenue. The most common businesses that outsource though are between $2 and $8 million in revenue. Typically, they are past the start-up phase and are taking steps to grow the business. And they currently have someone internally who helps with the accounting function.

Outsourced CFO Costs

How much will an outsourced CFO set you back? Well, it comes down to where you need help. Some businesses spend as few as $500 a month while others spend $7,000. Sit down with a CFO company and ask for an assessment. You’ll get recommendations on where a CFO could make an impact on your business. Then talk through this with your CPA and come up with a solution that makes sense for you. A CFO should always work closely with your CPA, whether the CFO is on your payroll of someone else’s.

Contact our Ohio CFO services team

Are you running your business without the assistance of a CFO, but need CFO services? Contact Rea & Associates. Our Ohio outsourced CFO services team can help you grow your business and manage your finances. Count one of our CFOs as a member of your team, for as much or as little time as you need. You can have the expertise of a CFO at a level that makes sense for your business. And by having this person help you drive your internal cash flow, you’ll be able to achieve all your business and, ultimately, personal finance goals.

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