How To Have A Virtual CFO Help Guide Your Business Decisions!

The Role Of A CFO

Most larger businesses have an internal Chief Financial Officer (CFO) or a Financial Controller. 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.

What Is The Role Of The CFO In A Business:

  • Keeps a close eye on the numbers and trends,
  • Alerts management when preventative actions are required,
  • Helps management create sound forecasts and plans,
  • Ensures the cash inflows and outflows are managed well so the business never runs out of cash or needs to borrow in haste,
  • 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 management with decision making.

This is management input that all businesses require regardless of their size.

How Can Small And Medium Sized Business Access CFO-level Input And Guidance?

The answer is to outsource it. Hire a part-time, out-sourced CFO until you can afford one full-time. That’s where we at AS Partners play a role for many of our business clients. Our Virtual CFO service has been developed with input from our clients to make sure it’s the ideal mix of support services and affordability.

As your Virtual CFO, we work with you in management meetings throughout the year on:

  • Cash flow – Efficient management of cash flow to provide cash for saving or investing in 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

Key Performance Indicators

As business owners, we all need to measure and monitor Key Performance Indicators (KPIs). The handful of numbers that really matter in running your business.

As your outsourced CFO, we will bring to each meeting clear financial reports, easy-to-understand KPI information, as well as our commercial experience to interpret the information. We will make suggestions and help guide your decision making.

At each meeting we will discuss:

  • 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 turn (depending on your industry and type of business)
  • Financial indicators such as debtors, inventory, stock turn (depending on your industry and type of business)
  • Team efficiencies, 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 Virtual CFO 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 …

Call us on 8199 3000 or email 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 is included and what costs are involved furthermore, you will see how the service can be comfortably included in your budget.

By Sevan Tuna, CPA, CTA

Contacts us for a complimentary review of your current business structure

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