by Rob Joseph, Director, BeaconCFO Plus
Back in 1999, Bill Gates wrote an article for Time about integrating digital information flow into your company to prepare for the millennium.
He wrote: “‘Know your numbers’ is a fundamental precept of business. You need to gather your business’ data at every step of the way and in every interaction with your customers. With your partners too. Then you need to understand what the data means.”
Now the millennium year has come and gone and as we prepare for 2023, having and gathering the data is not the issue. We are firmly planted in the digital age with no shortage of data. But the latter part of Bill’s statement rings true as ever: You need to understand what the data means.
For many businesses, that is what is being overlooked without the presence of a CFO. If you don’t know and understand your numbers, you could have more money going out than coming in. You could be lacking accurate forecasting to help you navigate difficult situations. You probably don’t know your “break-even” point, and you may have unnecessary spending eating at your budget.
If you can’t afford to bring on a full-time CFO, the virtual CFO model can be ideal. Your part-time CFO is a scalable resource that you can use to your advantage. Let’s talk about how you can benefit from outsourcing CFO services—and where you will see your ROI.
- Cash Flow Optimization: Getting an experienced CFO’s eyes on your cash flow can make or break profitability. Once you know your sales compared to your spending, your decision-making will improve. A CFO can also implement cash flow forecasting for a variety of different scenarios—ranging from what’s most likely to happen to worst- and best-case scenarios—that can be a guidepost as challenges arise.
- Eliminate Unnecessary Spending: A part-time CFO can help you see where unnecessary spending is occurring and plug the holes. Most virtual CFOs are industry professionals who have been in this business for decades. They can identify ways to optimize and streamline your processes and integrate new technologies that can save you time, money, and resources.
- Create a Break-Even Analysis: This calculation of where your revenue total will equal your total expenses is an important data point for your business, but it can easily be overlooked. Your CFO can help calculate this by looking at your overhead, balance sheet payments, and gross margin. Once you know this formula, you can make better decisions for your business.
- Improve Your Business Relationships. Virtual CFOs are highly experienced and have likely built partnerships with many businesses, vendors, and other organizations in your region. They can help facilitate relationships with investors and also assist with raising capital for your business.
Discover the ROI of a Part-Time CFO
Request a Consultation With BeaconCFO Plus
The team at BeaconCFO Plus is ready to help you discover why investing in part-time CFO services can have a significant return and impact on your business. It all starts with having a conversation with one of our CFOs. Reach out to request your complimentary consultation today.