When your business is in its infancy, hiring a CFO may seem unnecessary and expensive, However, at some point, it will be necessary to bring a CFO on board, either full time or on a part-time consulting basis. Why? Part-time CFOs have the kind of expertise that reaches beyond what your bookkeeper and internal accountant can manage. They can help with the complexities of your finances and the strategic planning needed to take your business to the next level.
Signs That Its Time To Hire a Part-Time CFO for Your Small Business
1. Lacking a Long-Term Financial Strategy
As the owner of a small business, your goal is for your company to continue to grow well into the future. You want it to profitable for many decades to come rather than just fizzling out after a few years. In order for this to happen, you need to have a long-term financial strategy complete with realistic financial goals. A part-time CFO in Denver can put a plan of action into place and help your company achieve the financial goals that you set.
2. Your Company’s Spending is Out of Control
Once a small business starts to generate steady profits, it’s easy for their spending to get out of control. If you feel as though your company is currently spending too much money in certain areas, an outsourced CFO in Denver can solve your problem. They can perform financial analysis and make financial projections to keep your company on track as far as your finances are concerned. They can also look for clever ways to cut costs to make your company even more profitable than it already is.
3. You Don’t Have Easy Answers to Your Questions
How easy is it for you to make financial or strategic decisions? Most major business decisions require detailed financial knowledge. If your current accountant or financial team is unable to give you the detailed information you need to make important or strategic decisions, it may be time to hire a part-time CFO. A CFO’s primary goal is to make sure your company can engage in a higher level of strategy for sustainable growth. Strategy first and foremost requires access to the answers you need to make educated decisions.
4. You’re Raising Capital – Especially if it’s a Series C or Later
If you’re raising capital, you may want to have the help of a part-time CFO. This is especially true if you:
- Aren’t sure how much you need to raise
- Don’t have a strategy for the right debt-to-equity ratio
- Are raising a series C or later
A part-time CFO will have extensive experience raising money for companies in similar lifecycle stages and industries. In addition, they will already have the relationships and credibility that can help you achieve your goals. Part-time CFOs not only help determine the right type of financing to acquire (and how much), but they also help answer tough questions during due-diligence, analyze and negotiate contract terms, and can attend meetings to help provide financial expertise and insight.
4. You have gaps in your AP or AR
If you have significant gaps in your accounts payable or accounts receivable, it may be a sign that something within your systems is out of whack. Are there cash flow issues that need to be addressed? Are there ineffective billing, collections, or payment processes? A part-time CFO can help you pinpoint the problem and develop solutions to resolve it.
5. You’re Not Keeping Up With Contracts
It’s not uncommon for growing businesses to acquire multiple loans as they expand into new territories, hire key players, and invest in infrastructure. The funds from these loans can help you to do great things, but keeping up with all of the details can be daunting. A part-time outsourced CFO keeps track of your obligations and develops strategies for managing debt, as well as ensuring timely reporting.
6. Tax Compliance Has Become Complicated
As your business grows and you have more and more transactions to track, tax compliance can become trickier. Tax compliance mistakes are expensive and dangerous for your company’s financial health. Most companies really can’t afford the penalties associated with failing to remit taxes promptly and accurately. Your CFO will create tax systems that are easy to manage and facilitate accurate reporting.
7. You’re Growing
Once your company gets to a certain size, additional legal and compliance rules kick in, and you will want the advice of a seasoned expert to help you navigate these regulations. Not only will a CFO help you to stay within government regulations, but he or she will also help you to manage the risk associated with quick growth.
Could Your Business Benefit from a Part-Time CFO in Denver?
Part-time CFOs are an excellent option for businesses in Denver struggling with any of the above issues. Sound financial management is essential for small business success, and not managing your money right could be the demise of your small business.
Limitless Investment and Capital Part-Time CFO Services in Denver
If you’re interested in bringing a CFO on board at your small business, you can hire one part-time at Limitless Investment and Capital. Schedule a FREE consultation with our team, today!