WHAT IS AN OUTSOURCED CFO ?
In a traditional sense a Chief Financial Officer (CFO), sits at the top of the finance division of a large business, above the accountants and provides valuable financial data and information to the owners, Shareholders and Management of a business who are in Charge of strategy and decision making of the particular Business.
The information/ Financial data provided by a CFO to management is extremely critical because often management would act on this information based on precise data and facts and move the business forward or cut back. As highly skilled in financial analysis, a typical CFO in these specialist position are generally very well paid due to the very special skills they bring to the table in advising management & business owners on very key areas that a business owner without the finance knowledge may not be aware of.
The good news for small to medium businesses is that some Accounting firms provide these specialised services as an additional service should a business require. A lot of small to medium business may not have the resources or additional budget to hire a full time or even a part time specialist with this type of skills. But engaging an Accounting practice like Australian Tax Specialists as an outsourced CFO on a requirement basis is lot more affordable.
HOW CAN AN OUTSOURCED CFO HELP YOUR BUSINESS ?
Look a very simple Profit & Loss statement, most business owners are more than capable enough to read the numbers and understand if their business is making money or not. More
often a business would use Australian Tax Specialists outsourced CFO services for more specialised service..
In Very basic terms, we would assess your monthly accounting and advice you on:
• If there are any specific issues in the business that you may not be aware of by simply looking at your Profit & Loss statement
• Why is this specific issue or issues are a concern
• Why you should be made aware of these specific issues • What you could do about these issue / issues.
WHAT ELSE DOES OUR OUTSOURCED CFO SERVICES COVER
Some of the common CFO services are :
Cash flow Assessment:
This is probably the single most important aspect for any business. By looking at a basic P&L you may see you are profitable, but in reality you may be feeling the pinch with not having enough cash to pay bills or take a decent salary for the owners. We can help you by pinpoints key areas, that might be useful for your business to make a decision on how you can solve any cashflow issues.
Detailed Analysis of Performance. Our CFO services will provide you with management report, based on the frequency on key performance areas such as which products or services are most profitable or areas which are most costly for you to run and what are your options.
We have access to whole host of key industry data, where we can help you bench mark against other businesses. For example, a medical practice or a pharmacy in a regional area may not be aware how similar businesses are performing. With available data we can assist in benchmarking your business. For Builders for example, we have access to host of data, where we can help your business by benchmarking how similar builders in your category are performing and average cost of goods sold.
Provide budgeting techniques for your business, and how you can keep your business within budget. Lot of cashflow issues occur when businesses are not using a structured budget that is relevant for their industry
Growth Strategies for businesses:
We can help, by use of key metrics & numbers if it is the right time and if you have sufficient resource to acquire another business or maybe invest in other areas of your business to lead a natural growth cycle.
We can help business owners through careful planning and preparation. Whether it be valuations advice, succession planning to your children or family office services, we provide useful advice you need to achieve optimal outcomes
WHAT TYPE OF BUSINESS WOULD USE AN OUTSOURCED CFO
Any business owner who require guidance and advice would use this service
START UP BUSINESSES: Start up businesses often use our CFO service. Particularly new owners who have made an investment, and require monthly updates on Return on Investments and if the business is breaking even and general advice.
GROWING BUSINESSES: Growing Businesses use CFO services to monitor optimisation and in this phase of the business, cash flow and budgeting is critical. Growing businesses need to maintain working capital so it is important to look out for key indicators such as level of inventory held, is it too much or too little, along with many other areas.
ESTABLISHED BUSINESSES: To maintain optimization of resources with help of KPI, Budgeting, Management reporting and cashflow reporting the established businesses always keep a close eye on their finances so that they can continue to operate at the level they are at and further exceed their margins.
% of our clients who use our CFO servicies
% of our clients from 22% who continue to use CFO services regularly
Frequently Asked Questions (FAQ)
Is CFO services ideal for a small business ?
It can be extremely useful, for example you request quarterly management accounting report for your business. In other words a quarterly health check is ideal to ascertain there are no major issues that will be a big factor in the near future or potentially we can further optimize the business.
Our business is struggling, what can a CFO do ?
Cash flow issues, Tax debt, inaccurate financial reporting, and new industry regulations impair growth and cast a shadow over future. An experienced outsourced CFO will assess your situation and build strategic plans that navigate your business by working alongside you.
What are the rates of your services?
This is based on what you require and frequency. Generally the best thing to do is give us a call on 02 8091 4054 and tell us about your business and we will provide guidance.
What if I already have a tax accountant ?
Thats fine ! Remember CFO services are purely focused on business performance and whether your business is making the right amount of money for your time and investment. Some clients engage us purely for CFO services. There is no lock in contract, engagements can be one off or on-going.