Why Hire An On-Demand CFO?
Updated: Nov 30, 2020
Many start-up, small, and mid-sized businesses put off hiring a Chief Financial Officer (CFO) for many years or until they are preparing for an IPO. CFOs are expensive and firms aren’t excited about paying for their expertise while they are in their initial growth stages. They don’t see how a CFO will add value to a company of their size. However, it is in these early stages that CFO expertise can help the most. CFOs help you manage cash flows, build and improve internal controls and processes, develop data driven strategies, assist with securing funding, scale your business effectively, and meet changing business demands. A full-time CFO can be prohibitively expensive, but an on-demand CFO solves this problem. Hiring an on-demand CFO gives you a CFO’s insight, but only when you need it. It is a cost-effective and flexible way to fill a critical role on your management team. Gain a strategic partner on your schedule and within your budget by hiring a CFO on-demand.
An on-demand CFO is distinctly different from an accountant or a bookkeeper. They work with owners and senior management to look behind the numbers and understand the story they are telling. They then translate that into actionable steps to achieve strategic goals. They work with owners to develop and drive business strategy, integrate financial targets with key performance indicators (KPIs) and operational goals, and manage financial risk. Some specific services an on-demand CFO can perform are:
Management and KPI Reporting
On-demand CFOs give business owners a view of how they are performing. They assist business owners in developing key performance indicators (KPIs) that give them insights into their business and early warning signs. Develop regular reports and dashboards (visual representations of KPIs) and review them regularly with the owner.
Cash Flow Analysis and Management
On-demand CFOs help with modeling, reporting, forecasting and understanding cash flows within your business. Cash flows are critical for small business success. Effective management of cash can be difficult even when sales are growing. Cash does not always move in tandem with sales, which can be confusing for business owners. They help you get a handle on how cash flows through your business and develop plans to improve your cash position.
Budgeting and Forecasting
On-demand CFOs help develop budgets & forecasts that reflect the strategic plans set by the business owners. They compare actual performance against the established budgets, analyze trends, identify problem areas, and search for ways to eliminate excess expenses.
Project Based Support
Need help selecting and implementing a new accounting system, or building a financial/scenario analysis model to aid with decision making? An on-demand CFO can help with one-time projects where you need a little extra help from a seasoned financial professional.
Discover which product lines, services, or locations are your most profitable or which one should be discontinued. On-demand CFOs will use cost accounting techniques to accurate identify all relevant costs.
Process Development and Improvement
Streamline your accounting, finance, and internal processes and policies and strengthen your internal controls to protect your business finances. On-demand CFOs can help you redesign your processes to improve their effectiveness and efficiency. They can reduce the time required to run your business so you can focus on doing what you love.
Engaging an on-demand CFO can turbo charge your finance function and help take your business to the next level. If you would like to learn more, or think your company could benefit from working with Augelli Consulting, LLC please contact us for a free initial consultation at email@example.com