This weeks blog is about “What a CFO can bring to your business”. I am often asked this question by many clients…
It is often misunderstood that a CFO’s position is often found in large corporates but actually a part time CFO can bring a huge amount of insightful information to a small to medium size business. As a business grows it is important that profit is being generated and a closer look at margins (Profit) is regularly overlooked which could lead to a business failing.
Here at Cloud Accounts Services Limited we can provide a part-time CFO tailored to suit your business needs and this could be a matter of a few hours a week to a few days depending of course on the scale and complexity of your business.
- Profitability
In order to run a successful business profit has to be at the forefront of our thinking and actions. The first question: Is the business making a profit?, Which business units (projects , products, services) are contributing to this. Where certain products are making losses it is good to look at the costs involved and see if there can be cost reductions made. In certain circumstances these loss making products may need to be discontinued. Also, prices could be increased too.
- Cashflow
Whilst being profitable is key, having enough cash in the bank to meet short-term obligations (payments) is important too. Remember that business liquidations can be the result of running out cash. Where months are slower in terms of revenue, businesses have to navigate themselves to meet their overheads. However, the best approach for businesses would usually be to look at quarterly to yearly cash flow positions to foresee problematic months and to ultimately plan ahead.
There are many skills in running a successful business from the creation of the service or product offering but as you can see Finance can not be overlooked. Anxiety/stress is caused by uncertainty, not knowing what is happening financially in the future. Either finance is not your strong point or your hands are taken in running the business a part time CFO would be worth considering.
Get in touch if you want to discuss how Cloud Accounts Services Limited can help your business. We will concentrate initially on your immediate concerns , look at your businesses numbers as well as gather information from you. This will enable us to share some useful reports to help you make decisions and make the necessary changes to reduce the anxiety the unknown can create.
Next week we will be talking about VAT and penalties after the recent announcement from HMRC…