Larger businesses have a Chief Financial Officer (CFO) on staff. But what can small and medium sized businesses do in this regard?
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.
The CFO keeps an eye on the numbers, helps management create sound forecasts, ensures the cash inflows and outflows are managed well, 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 with decision making.
This is management input that all businesses require regardless of their size. So how can I as a small or medium sized business have these same skill sets in my business to manage the financials, assist with the growth of my business and provide governance, all at an affordable price?
The answer lies in outsourcing this function to a Virtual Chief Financial Officer (VCFO). You get a part-time, outsourced VCFO until you can afford one full-time, all for an agreed fixed monthly fee.
That’s Where We At Insight CA Limited Can Play A Pivotal Role
At Insight CA Limited, we work closely with our clients to understand your business and what you need. We become part of your core business team, providing expert advice for more informed decision making, timely and accurate reporting, and reduced operating costs
At Insight CA Limited we roll our sleeves up and work with you in regular monthly management meetings throughout the year as Your Accountability Partner on:
- Cash flow – Efficient management of cash flow to provide cash for saving or growth
- Profitability – Identifying key drivers of profit and focusing on these, while at the same time implementing and measuring against budget forecasts
- Business Strategies and improvement advice
- Structure management – Staying on top of risk and taxation issues
As business owners we all know we need to measure and monitor Key Performance Indicators (KPIs). That is, the handful of numbers that really matter in running our business.
It is also important that you have a ‘KPI dashboard’ to display your KPI targets compared with your current KPI performance. This helps tremendously in monitoring and managing your business performance and ultimately hitting your targets.
As your VCFO, we will bring to each meeting that we conduct with you clear financial reports, easy-to-understand KPI information, as well as our commercial experience to interpret the information, make suggestions and help guide your business decision making.
Items We’ll Discuss Each Meeting Include
- 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
- Financial indicators such as debtor turnover
- 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 VCFO 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
Are you struggling to make your business work?
Insight CA Limited is a team of experienced Auckland-based chartered accountants and business advisors who can help. We’ll give you the power to see what’s really happening in your business, so you can take control and start making progress. Click here to learn more about how we can help you achieve your goals.