Should You Consider a CFO or a CPA For Your Business?customonecfo
Depending on the level of revenue that your company is generating annually, you may want to consider hiring a part time CFO or financial controller over a CPA. You may be thinking that your company isn’t sizable enough to hire a full time CFO to help manage the finances of your company, but that doesn’t mean that you can’t benefit from the assistance of having a head financial executive. You just may not need to have that executive present every day in your office.
Part Time CFO
Hiring a part time CFO can be really beneficial for smaller businesses because they can offer the valuable insight, feedback, and strategies that your company needs to grow and make more prudent financial decisions.
Here are few different ways that hiring a part time CFO can improve the finances of your business.
1) Better Margins
One of the greatest gifts that hiring a part time CFO can give to your company, are ways that you can improve your margins. Experienced chief financial offers will be able to offer insight and expertise on how your business can save money while still delivering a quality product, so that your business can make a better profit.
2) Better Cash Flow
Another great aspect of hiring a part time CFO is helping your business improve cash flow. CFO’s will help you close the number of days in the gap between accounts payable and accounts receivable, so that your business isn’t running so tight when it comes to cash flow.
3) Analyzing the Break Even Point
If you aren’t familiar with your break even point, you need to make sure that you are employing someone who will be. The breakeven point is the amount of units or hours of service that you have to sell in order to cover all of your business’s expenses. That number is extremely important because any sales that you make beyond that, you are generating a profit for your business. Your CFO will be able to come into your business and analyze your break even point, over smaller windows of time, like a week or a month. Your CFO will use that number as a benchmark, so when other variable costs come into the picture, you will know how many additional sales you need to make to cover those costs.
4) Familiarity with you and Your Business
Instead of hiring a CPA who could potentially work with hundreds of other clients, having your own personal CFO gives you a part time employee who is more invested in the success of your business. They will get hands on experiences within the four walls of your company, meet your team, and get a feel for your office environment.