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A Chief Financial Officer (CFO) is responsible for setting a business’s financial budgets and objectives and taking concrete and appropriate steps to meet them. While many think hiring a CFO is only necessary for large organizations, it can benefit a business of any size and at any stage in its journey.
When it comes to offering higher-level CFO consulting services to clients, CPA firms are often limited by bandwidth. By using industry intelligence to gain insight into trends and financial benchmarks, CPA firms can offer more strategic advice and help clients better optimize their financial operations.
An effective strategy CPA firms can evaluate for growing their own practice involves gaining access to qualified experts to fulfill the demand for CFO services.
Some of the ways in which CPA firms help small to midsize clients include:
One of the most common reasons businesses hire a CFO is to help them develop and execute a financial strategy. This process involves creating and maintaining a budget, identifying growth opportunities within the business, assessing cost management, and recommending new revenue generation opportunities. Once a business has set its financial goals, a CFO can create a set of key performance indicators (KPIs), which are designed to measure progress and ensure companies are on the right trajectory.
A CFO can develop the financial processes required for a business to run effectively. Suppose the business already has financial processes in place. In that case, a CFO can analyze the current state of these processes and advise the business on changes it can make to improve them and optimize resources.
As a business continues growing, it becomes increasingly important to have appropriate risk management strategies in place. An experienced CFO can help implement policies designed to protect the business from fraud, regulations (federal, state, and local), and market fluctuations.
CFOs can also help build trust with stakeholders by ensuring that the business reports financial information accurately and on time. They can also help ensure compliance with relevant accounting standards, tax regulations, and other legal requirements.
Most CFO solutions will leverage tech-driven processes to promote business growth. Here are some key ways that technology can create new development opportunities:
Business intelligence tools such as Power BI, Fathom, and Tableau facilitate data-driven decision-making by improving data collection and visualization processes. These tools provide actionable insights and a deeper understanding of customer behavior and help identify new growth opportunities.
It can also help CPA firms improve audit performance by reducing the number of errors and making it easier to complete documentation.
By providing cash flow projections, tech-driven processes can improve a business’s financial model. These projections can help businesses confidently set budgets and forecast quarterly income.
Financial modeling tools can be used to analyze spending thoroughly and see where cash is going. It can also simplify the process of creating reports that can help analyze trends and funds management. For example, financial modeling tools can be used to conduct scenario, variance, or break-even analyses.
Despite the many benefits of hiring a CFO to help drive business growth, this can feel like a major financial step – especially if a business is in its early stages. If hiring a full-time CFO doesn’t seem like the right option for right now, part-time CFO services can help your business.
Analytix Solutions is a flexible, ISO 27001-compliant, client-centric solutions provider that provides outsourced, CFO-level services to guide businesses’ financial decision-making processes. There is the option of using these services year-round to manage overflow or during busy seasons only.
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