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Who Needs Outsourced CFO Services?

posted in: Blog

Often, after many years of running a business, business owners no longer  feel the freedom that propelled them to open up shop in the first place. The burden of the business, customers relying on the owner to work in the business, and the stress of generating enough work and cash to keep staff busy and paid feels a long way from free. Is this you?

If you’re like most business owners, you’re stuck in a rut, spending 60 to 80 hours a week working in a business that is paying you less than you deserve and generating little or no profit. Of course, you can’t keep doing what you have always done and expect different results.

That is where the right outsourced CFO can help. The ideas listed below are just the tip of the paper pile and accompanying to-do list that can be taken care of by an outsourced CFO.

Correct & Useful Financial Statements

For many business owners, monthly financial statements (if they produce them at all) consist of a single column of numbers with no comparisons. The totals swing wildly month to month, from substantial loss to large profit, with the year-end statements being a surprise. If you find yourself in this position, an outsourced CFO can give you control of your month-end reporting and set up reports that actually tell you something useful.

A Plan to Increase Profits

Increasing profits doesn’t happen by monitoring wildly fluctuating monthly reports and hoping for better next time. In fact, in my experience, most small businesses don’t have plans and are operating at less than optimal profitability. An outsourced CFO will develop a plan that will increase profits and can be implemented in a sustainable way.

Create a Financial and Cash Flow Forecast

This will help you meet all obligations in the near and distant future. No more panicking because a client didn’t pay on time or because you’re waiting for a cheque to clear the bank. This forecast will give you actions that will produce the desired results.

Develop Processes That Give You More Time

Does this sound like a dream? Perhaps. But it’s a realistic one. An outsourced CFO will develop processes with you that will help your business run efficiently with less involvement from you, the owner. Yes, you can say it: vacation! (Or perhaps semi-retirement? Time with your family? All of the above?)

Determine the Value of the Business and Increase Its Value

There will come a day when you realize it’s time to move on. An outsourced CFO will help you take steps to increase the value of your business to the shareholder so that the company is sale-able and the value is maximized when it’s time to sell. If you don’t know the value of your business now, moving on will be a difficult journey and you may discover that your business is worth a lot less than you thought.

A Sounding Board for Difficult Decisions

Too many issues aren’t for employees’ ears. But when you need to discuss increasing profitability, retirement, selling, even employee pay rates, an outsourced CFO is there for you. This person will have both the necessary financial knowledge and the key insights into yourbusiness, so the advice you get will be beneficial to you and your business.

So, what does all of this look like in real life? Here is what one of our clients said:

McCann Redi-Mix

In the first four months of being our outsourced CFO, Kevin Ballantyne from Profitable Wisdom provided us with accurate and timely comparative financial statements that included comments and ratios, helping us understand the financial performance of the company better than before. He was also able to close our year-end financials and provide supporting documents to our external accountants within a month of our year-end. Kevin completed a 2-year financial forecast including cash flow projects, helped to straighten out our HST filing, trained our accounting clerk on month-end procedures, analyzed the potential return on investment for an expensive piece of machinery and helped to save money on foreign exchange. Kevin also created a detailed fixed asset ledger, documented our office processes and reviewed ERP systems for future conversion.
— Bill McCann, President of McCann Redi-Mix

Our purpose at DSK Profitable Wisdom is to guide businesses and their owners to success. Success is defined by you, and we will help you get there. Contact us today at info@profitablewisdom.com or (226) 791-0374 and arrange a no-obligation conversation.