The Virtual CFO can help you improve your efficiency and procedures to improve your business and free up your time to do things you would much prefer to be doing.
If your accountant is not taking on this role, you should ask yourself if you are getting the value you could from that relationship.
So many business owners aren’t maximising their return on their business because they don’t understand what their numbers are telling them. This is where a Virtual CFO helps a business owner maximise their earning potential.
Large Corporations employ a Chief Financial Officer (CFO) to take control the financial aspect of a business. The CFO reports back to the board at a quarterly board meeting and plans are made to improve business performance. Without the board having this data the corporation couldn’t grow. Small Business owners are faced with this same problem. Problem for a small business owner is that they can’t afford a CFO. Because of advances in technology, accountants can have access to their clients data instantly. So why not have your accountant take on the role of a virtual CFO position as well as that of a compliance position?
As a rule, 50% of business don’t make it past their 5 year anniversary. This generally doesn’t reflect on the quality of work done by the business owner, but the lack of understanding about why their business is not making the money they hoped.
As an accountant, I sometimes have to tell clients their business has not made a profit in their business for the year. For many small business owners who hear this, their reaction is “great, that means no tax bill”. This response seemed like a strange one, but, over the years working with small business owners, I have come to realise that the reaction they have has simply come from a lack of understanding. Many clients associate their bank balance at the 30th June with how much profit they have made for the year and are often confused and disappointed when their business has made a profit. If the business owner understood why their bank balance doesn’t match their profit, the reaction to a good years profit would be different. We are all in business to make a profit, so this should be exciting news. With planning and up to date advice, a small business owner will see this. The business owner with knowledge on their side strives to make higher profits, but to also make changes in their systems to improve their cash position.
Financial data is an important tool to track what has happened in the past. And this is what many small business owners see financial data as. Once we can generate up to date reports and look at trends in your business data, we can use these tools to plan for the future. How can you set a goal to improve your collections if you don’t measure your average debtor days. We give you these tools and go through strategies that have worked for our clients.
If you want to get the best financial return out of your business, and cut down on time you spend doing paperwork, please call on (03) 8712 3256 for further information.
