Larger businesses have a Chief Financial Officer (CFO) on staff. But what can small and medium sized businesses do in this regard?
Clearly, larger businesses can afford an in-house CFO. But it goes beyond an affordability issue: Large, successful businesses also understand how crucial the CFO role is to their business performance…
The CFO keeps an eye on the numbers, helps management create sound forecasts, ensures the cash inflows and outflows are managed well, reports on revenues achieved compared with targets, gives solid information on a range of Key Performance Indicators (KPIs) to the business decision makers, and also helps with decision making.
This is management input that all businesses require regardless of their size. But how can small and medium sized business access CFO input and guidance?
The answer: You out-source it. You get a part-time, out-sourced CFO until you can afford one full-time.
That’s where we can play a role.
Our ‘Insight’ service has been developed with input from our clients to make sure it’s the ideal mix of support services and affordability.
With our ‘Insight’ service we roll our sleeves up and work with you as Your CFO in management meetings throughout the year on:
- Cash flow – Efficient management of cash flow to provide cash for saving or growth
- Profitability – Identifying key drivers of profit and focusing on these
- Business value – Growing a valuable and saleable business asset
- Structure management – Staying on top of risk and taxation issues
As business owners we all know we need to measure and monitor Key Performance Indicators (KPIs). That is, the handful of numbers that really matter in running our business.
It is also important that you have a ‘KPI dashboard’ to display your KPI targets compared with your current KPI performance. This helps tremendously in monitoring and managing your business’ performance and ultimately hitting your targets.
The targets need to be relevant to your business direction and strategy and the current identified issues.
As your outsourced CFO, we will bring to each meeting that we conduct with you clear financial reports, easy-to-understand KPI information, as well as our commercial experience to interpret the information, make suggestions and help guide your business decision making.
Items we’ll discuss each meeting include:
- Profit (historical and future)
- Cash flow (historical and future)
- KPIs: A mixture of focusing on Lead Indicators which drive performance and Lag Indicators that measure the outcomes
- Marketing activity and effectiveness
- Operational efficiencies such as work-in-progress or workflow
- Financial indicators such as debtor turnover
- Team efficiences, knowledge management, morale and safety.
By helping with your forward planning for achieving the next period’s targets, and by being a sounding board for you as you strive to meet your targets, our ‘Insight’ service and support gives you a crystal clear focus for what needs to be done to achieve the goals of your business.
Your next step … Contact us for a no cost and no obligation meeting to discuss how we can work with you as your outsourced CFO. We’ll outline for you what’s included and what costs are involved so you know exactly what lies ahead.