BUSINESS
Achieving financial health
The top six benefits of hiring a fractional CFO for your business by Peter Thelen Sr., CPA, FMC, President of Thelen Financial If you’re like me, this time of year you are just getting through the first busy season and looking toward the next. You might be heading out on vacation and plan to do some strategic planning.
For me the top-of-mind things have always been return on invested capital (ROIC) and operating efficiency. But I don’t own a landscape company. I never have. Instead, I am a CFO who has spent the last 10 years in the landscape industry.
From ROIC and liquidity to solvency and operating efficiency, there are so many considerations a business owner must take into account when making decisions about their company’s finances. If you’re like most business owners who I work with, you probably wear a variety of hats. You’re responsible for marketing, sales, product development, and operations - but finances are one aspect that will ultimately determine the success or failure of your business. The bottom line is that profitability (or lack thereof) is the deciding factor on whether your business will be able to sustain itself in the long run. Your profit margins are, in the most basic terms, determined by your revenues and expenses. But there’s much more to it than that. Achieving financial health requires strategic decisions about how you allocate your resources, your operating structure, and your pricing model. It’s a complex puzzle that can be difficult to navigate without the help of a financial expert. This is where a fractional CFO can be an invaluable asset to your company. A fractional CFO is an expert in financial management who, if experienced enough, will take a holistic approach to your company’s finances, providing you with the invaluable insights and specialist advice you need to make informed decisions about your business.
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In this article, I will discuss the top six benefits of hiring a fractional CFO for your business.
1. Clear picture of your financial wellness.
Perhaps the most important benefit of hiring a fractional CFO is that they can help you obtain a clear picture of your financial wellness. This is essential for making informed decisions about the future of your business. A fractional CFO will take into account all aspects of your finances, from revenue and expenses to cash flow and solvency. They will also look at your financial history to identify trends and areas of improvement. They’ll assess your risks and opportunities in order to develop a comprehensive roadmap for your business. This information will be presented to you in a clear and concise manner with actionable steps, allowing you to think about the future with reliable data in your hands.
ROIC. 2. Improved One of the most valuable things a fractional
CFO can do for your business is improve your return on invested capital. By working with you to create and implement strategies that increase profits and decrease costs, a fractional CFO can help you achieve a higher ROIC. This, in turn, will make your company more attractive to investors and help you secure the funding you need to grow your business.
