CFO For SMALL BUSINESS: A Wise Step Towards Financial Recuperation 

When a small business or owner-managed companies begin out, their business needs are usually simple. What is done in the name of accounting can be categorized into bookkeeping? But as and when the time passes and the business tally the following criteria– 

Increase in revenue rapidly, rise in the number of people employed by you, or the growth rate expectations cross the initial benchmark set by you. 

Then it is often better to ramp up and be prepared instead of catching up once the effects of growth and development are evident on the financials and overall operations of your business.  

One such way to critically plan forward and manage the changes that are discernible in near future for your business is by hiring a CFO. A CFO is a financial management proficient who offers you the wealth of  

– Designing of financial structure 

– Maintaining adequate liquidity  

– Reporting financial statements 

– Increase in return on investment and more.

Role of CFO in small business 

The inflexion point of the need and the role a CFO plays in business whether small or big attributed to the deep understanding of the financial aspect of the business. He performs various essential tasks like overseeing the tax planning, cash management, increase in the confidence of investors, securing funds, help you achieve your desired objectives by mobilizing the action plan and scaling new opportunities. 

Even in small businesses, complex and challenging situations may arise which might be the signal for your business to have a fiduciary and strategic oversight. 

Consequently, small business always has the option of hiring a CFO to test out the waters to form an informed decision regarding the bandwidth of the operational input they need from their financial personnel.

Does your business need the services of a CFO? 

There’s not a right answer to this. It depends on the industry your business operates in and the nature of business. 

Say your business is stuck in the financial conundrum of whether or not to accept a new project or your financial data isn’t strong enough to make an informed decision regarding exit opportunities or deficit of cash flows in business, a CFO can help you in deciding how to handle such slippery situations and optimizing the operational and financial health of your company.

Benefits of CFO

Acquiring or hiring of CFO, whether your business operates in small, mid or big size has advantages of its own.   

A CFO charters the business to profitability and productivity by adding value to your business in the following tasks: 

a) Cash management 

Managing cash is the lifeblood of any business, especially for smaller businesses where the chances of cash depletion outweigh the incoming cash. An experienced CFO would manage your cash flow by improving prices, directing funds and giving you better opportunities to invest the surplus.  

b) Creating and analyzing financial strategies  

Analysis of financial data helps in better understanding of behaviour patterns of the consumer. Various financial strategies can be created by analysis of past trends on which the analysis of the future can be made.  With CFO’s guidance, your business can avail the benefits of insights and achieve growth amongst your peers.  

c) Tax planning  

 A CFO works with your accountant to provide you with unique tax solutions that minimize the tax burden to avail benefits that the changing tax regulations provide.  

d) Cautious approach to worst-case scenarios  

Worst scenarios can befall any business small or big, to have a financial advisor that can make the most of that situation with the available resources is a blessing in tough times.  

An experienced CFO helps in preparing for different scenarios and planning a response for each of such scenarios. 

Final thoughts 

As your business grows and becomes more complex, it is best to incorporate the services of someone who has experience and understanding in their field.  

Acquiring or hiring CFO warrants many questions regarding the budget and letting go of reins that you usually have the hold of, but a professional and experienced company like Vittakosh would align their services with your company’s core values and significantly improve the financial condition of your company thus enhancing your image in the market!  

If you think you are in the market for acquiring your next financial personnel contact Vittakosh to garner your business with management that banks on your growth for tomorrow.