During the early stages of a business, for various reasons, many businesses owners are reluctant to hire a CFO or Controller.
However, as your business grows, having proper financial leadership in place can be the difference between sustainable and unsustainable growth. A CFO or Controller will not only allow you to focus on what you do best, but they will also set your business up for future success.
While every business has different financial and accounting needs, here are some clear signs that your business will benefit from a CFO or Controller.
Lack of Financial Visibility and Insights
A CFO or Controller will make sure your financials are accurate with the business insights that you need to make better and more informed business decisions in real-time. Without clear financials, business owners often find themselves “flying blind” when operating their business.
Manual Processes and Systems
Almost all key accounting processes can be automated. If your business is still undertaking manual processes and procedures, it is time to hire financial leadership that has experience implementing the resources needed to automate your accounting operations. Automated accounting processes significantly reduce human error, save time, and increase efficiency by streamlining repetitive tasks.
Non-Finance Employees Doing the Books
Often the task of doing the books and monitoring other accounting processes is delegated to someone in the company who doesn’t have an accounting background. This can lead to errors and disorganized financials, which can be costly down the line when accurate financials need to be produced to potential investors, lenders, or other external parties.
Long Delays to Close the Books
Without proper oversight and processes, closing out the books can feel like a never-ending task every month. A CFO or Controller will implement a month-end close process to ensure the books are closed in a timely matter every month (within 1-2 weeks). Closing the books on time not only reduces internal headaches, but it gives business owners the financial information they need to operate their business effectively.
How CFOx Can Help
A fractional CFO or Controller is often a great solution for growing businesses. CFOx has helped companies avoid and solve the issues above while setting them up for long-term success. Read more on how CFOx worked with a local mortgage company who lacked a financial processes or reporting here.
If you would like to learn how CFOx’s CFO Services can help your business, please schedule a free consultation via email ([email protected]) or schedule a call directly on our website homepage.
