Larger businesses have a Chief Financial Officer (CFO) on staff. But what can small and medium sized practices do in this regard? And is a generalist practice manager the right person to take on this job?
Clearly, larger businesses can afford an in-house CFO. But it goes beyond an affordability issue: Large, successful businesses also understand how crucial the CFO role is to their business performance…
The CFO keeps an eye on the numbers, helps management create sound forecasts, ensures cash inflows and outflows are well-managed, reports on revenues achieved compared with targets, gives solid information on a range of Key Performance Indicators (KPIs) to the business decision makers, and also helps guide decision making.
This is management input that all businesses require regardless of their size. But how can small and medium sized business access CFO input and guidance?
The answer: You out-source it. You get a part-time, out-sourced CFO until you can afford one full-time.
That’s where we can play a role.
Our CFO service has been developed with input from our clients to make sure it’s the ideal mix of support services and affordability.
As CFO we roll our sleeves up and work with you in management meetings throughout the year on:
• Cash flow – Efficient management of cash flow to provide cash for saving or growth
• Profitability – Identifying key drivers of profit and focusing on these
• Business value – Growing a valuable and saleable business asset
• Structure management – Staying on top of risk and taxation issues
As business owners, we all know we need to measure and monitor our own unique Key Performance Indicators (KPIs). That is, the handful of numbers that really matter in running our business.
It is also important that you have a ‘KPI dashboard’ to display your KPI targets compared with your current KPI performance. This helps tremendously in monitoring and managing your business’ performance and ultimately hitting your targets.
As your outsourced CFO, we will bring to each review meeting that we conduct with you clear financial reports, easy-to-understand KPI information, as well as our time-tested experience to interpret the information, make suggestions and help guide your business decision making.
Items we’ll discuss each meeting include:
• Profit (historical and future)
• Cash flow (historical and future)
• KPIs: A mixture of focusing on Leading Indicators which drive performance and Lagging Indicators that measure the outcomes
• Marketing activity and effectiveness
• Operational efficiencies such as work-in-progress or workflow
• Financial indicators such as debtor turnover
• Team efficiencies, knowledge management, morale and safety.
By helping with your forward-looking planning for achieving the next period’s targets, and by being a sounding board for you as you strive to meet your targets, our CFO service and support gives you a crystal clear focus for what needs to be done to achieve the goals of your business.
Your next step … Call us at (781) 489-6651 or email Mark McGaunn at email@example.com a no-cost, no-obligation meeting to discuss how we can work with you as your practice’s outsourced CFO. We’ll outline for you what’s included and what costs are involved so you can see how the service can be comfortably included in your budget.