You don't have to be a multimillion-dollar corporation in order to need a Chief Financial Officer. In fact, most businesses would be more successful if they had one person on staff whose job was dedicated to protecting and improving the financial well-being of the business. With an outsourced financial consulting service, you can get the guidance of having your own CFO without having to pay the salary associated with a full-time CFO. Here are five ways an outsourced financial consulting service, for a monthly fee, can help your business grow:
Service #1: Monitor the Cash Flow
Your cash flow is the lifeline of your business. You need to keep up your cash flow if you want to be able to pay vendors and employees and keep your business afloat. A financial consulting service will make sure you are managing your cash flow correctly, and will help create a cash flow forecast so you know when you may be bringing in more cash and when you may have lower cash flow. This will help you make smart business decisions.
Service #2: Labor Costs Management
Your employees are the heart of your business, but they can also cost you a lot as well. Your financial consulting service can look over your payroll and help you manage your labor costs. They can let you know if the staff is putting in too many overtime hours and needs some extra help. They can let you know if you are undervaluing certain positions and help you provide pay raises that will keep your best staff around. They can help you avoid over- or under-staffing your business, both of which can be costly.
Service #3: Budget-to-Actual Reporting
It is one thing to create a monthly or quarterly budget -- it is another thing entirely to actually stick to that budget. With a financial consulting service, they can look over all of your spending and create a report to let you know how your actual spending and earning matches the monthly or quarterly budget that you made up. These reports can help you create more accurate budgets in the future, or they can help you figure out where you can trim your budget.
Service #4: Debt Planning
If your business carries any debt, you don't want to carry that debt forever. You want to make sure you are actively taking steps that will help you lower your debt over time. A financial consulting service can examine your debt and your overall budget and help you come up with a plan that will allow you to pay off your debt. Paying off your debt can help put your business in a better financial position.
An outsourced financial consulting service can help your business get on the right financial track. Many great businesses fail because they don't know how to manage their finances -- a financial consulting service can help you avoid that same fate.
