As a follow-on to our “Value of a CFO to Small Business” post, let’s first accept, based on this value, that an experienced CFO is right for any business - small or large. Now, how does this value translate to improved cashflow, profitability and balance sheet. Well, just as a highly trained coach is to an elite athlete, the experienced CFO (part time or full time) can be the same to any business. How can this be possible? The CFO’s work, and thus value, starts on day one.
Very quickly, through proprietary analytics, we at Copetti & CO can evaluate the health of any business through these analytics with comparative information to any number of companies large and small in your space in the marketplace. These analytics have an initial focus in the following seven areas of the business.
The results immediately highlight areas of efficiencies, weaknesses and potential areas for concern within the present and future health of the business. Included here is valuable information to any SME, highlighting areas of concern along with initial tips for consideration moving forward. It further arms the CFO with initial areas to dig deeper and to provide strategies and information to improve performance, competitive advantage and financial improvement.
Embracing the Notion of a Remote CFO
Waffling on whether or not you should add a full-time CFO to your payroll? Consider implementing modern tools, strategies and behaviors that will give you the option of contracting a remote CFO instead of paying a premium for financial duties.
1. Use new tech platforms
From millennials to genX, we love their online platforms that make our lives easier to manage. According to Gallup, 68 percent of younger workers text as a primary mode of communication and 88 percent connect via social media. What does this mean for your company? Basically, you owe it to your team to embrace the most effective apps and tools. Educate yourself so you can create and maintain constant rapport with team members; then, when you bring on a virtual part-time CFO, touching base will be second nature.
2. Its the cloud or bust
Are 25 percent or more of your financials still on paper? Break the habit, because cloud computing is expanding astronomically in importance. By 2020, companies and individuals will spend more than $162 billion on cloud computing. Why? It makes business simpler to conduct near and far. A remote CFO can’t help you if they're not able to do 100 percent of the job remotely. Invest in a provider you trust by conducting due diligence and getting all your information onto a cloud-based platform.
3. Use video conferencing for meetings.
Video conferencing has become so easy to use that you can almost cancel your hard line. Some time ago, video calling or conferencing was a luxury and required expensive and (then) complex equipment and expertise. Today, you literally carry it in your pocket. This is a tool that makes the virtual CFO almost an inhouse CFO.
4. Choose a messaging tool for speedy back-and-forth communications.
There is a wide variety of tools to choose from and new ones are popping up all the time. Ideally, the CFO has tools that they can integrate into their clients eco-system without too much training.
Technology is making the C-suite more accessible to small to medium size businesses more and more, and you owe it to your business to explore all the possibilities it presents. Hiring a remote CFO shouldn’t be viewed as a leap of faith; instead, see it as a leap forward into the future of working effectively, remaining within your budget constraints, and staying miles ahead of the competition.