When your company is growing exponentially, it’s easy to make the business case for hiring a remote CFO. According to Salary.com, a Chief Financial Officer earns between $177,928 and $473,450 per year, not including benefits and bonuses. Even with significant growth, that’s not a salary the average small business can sustain, especially in the early stages of building a company.
Business owners usually handle the majority of financial tasks, but when drastic growth takes place, it can be difficult and maybe even impossible to keep up. A remote CFO is an ideal balance: you don’t have to pay a full-time, hefty salary, but you also don’t have to spend your own valuable time on financial projections and accounting tasks, an area that might not be in your wheelhouse to begin with.
With a remote CFO on board, your business enjoys these five clear advantages:
1. Improved Cash Flow
One of the top reasons small businesses fail is due to cash flow mismanagement. This is one of the first areas your remote CFO will analyze. Where can your business free up funds? Where are you spending too much, with not enough potential for a profitable return? When business owners are both the financial controller and the day-to-day manager, it’s probably easy to recognize you have a cash flow problem, but sometimes it takes a third party analysis to figure out how to resolve it.
2. Make Informed Business Decisions
Move from, “I think we can,” to “I know we can” with the help of a remote CFO. Don’t assume your financials can withstand a big purchase or a new hire – get assurance and peace of mind you’re making the right move.
3. Enjoy Financial Assistance During Times of Major Change
Are you about to acquire another company? Are you working on a detailed merger? These occurrences often present in-depth financial questions and you can’t find the answers through a quick online search. It’s often where a business owner’s DIY capability ends, but that’s where your remote CFO can step in to handle the details. Change means growth, and growth is good, but from a financial standpoint, it’s essential to ensure it’s healthy growth.
4. Prepare for Tax Time All Year Long
When you realize tax time is on the horizon and there are mountains of paperwork and receipts to locate, you might start to feel overwhelmed. Preparing for tax time isn’t simple when you’re a business owner, but if you have a remote CFO on retainer all year, the burden is no longer on you alone. You don’t have to get involved in tax time details at all. Better yet, your remote CFO does everything they can to make sure you pay as little as possible!
5. Depend on an Experienced Strategy Partner
The best part about a remote CFO: you’re getting more than basic accounting help. You’re able to rely on the time-tested experience of someone who has been there before. With a wealth of financial industry knowledge plus business growth experience gained from thousands of hours helping companies similar to yours, you get granular and high-level strategy feedback, which helps you avoid common pitfalls and ultimately reach your business goals faster.
Build a consulting and services package tailored to your company’s exact needs. Contact the team at Robert L. Coval, CPA to learn more about our specialized remote CFO services.