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Welcome back everyone. In the sixth and final part of my blog series, I want to discuss something that affects all of our financial journeys: Superannuation. Perhaps you’re concerned about your retirement savings? Or maybe uncertain about how to make the most .....
When your business is in its infancy, hiring a CFO may seem unnecessary and maybe even ostentatious. However, at some point it will be necessary to bring a CFO on board, either full time or on a consulting basis.
Why? CFOs have the kind of expertise that reaches beyond what your bookkeeper and internal accountant can manage. They can help with the complexities of your finances and the strategic planning needed to take your business to the next level.
If you’ve wondered about the efficacy of your financial analysis and reporting, how to provide financial advice to your organisation’s principles, creating financial tools and systems, and managing your company’s risk, you are probably ready for a CFO
If you’re using lots of consultants, you may find that communication with these external personnel has become difficult. They might not understand the work and position of all the other consultants, and when they’re working autonomously, you can lose direction.
A CFO consults with all of the external consultants and helps them to understand the overall strategy. They all report back to the CFO as well, so you can know what is happening with consultants at all times.
It’s not uncommon for growing businesses to acquire multiple loans as they expand into new territories, hire key players, and invest in infrastructure. The funds from these loans can help you to do great things, but keeping up with all of the details can be daunting.
A CFO keeps track of your obligations and develops strategies for managing debt, as well as ensuring timely reporting.
At some point in your organisation’s growth, third-party entities (such as your bank) will require audited financial statements. Audits mean additional scrutiny of your company’s finances, and this can be intimidating, especially to business owners who don’t specialise in finance themselves.
A CFO can create and monitor accounting systems with internal controls so that audits are much cheaper and easier to manage. When the time comes, your CFO can oversee the audit, reducing your stress and preventing the audit from sidelining your daily operations.
As your business grows and you have more and more transactions to track, tax compliance can become trickier. Tax compliance mistakes are expensive and dangerous for your company’s financial health. Most companies really can’t afford the penalties associated with failing to remit taxes promptly and accurately.
Your CFO will create tax systems that are easy to manage and facilitate accurate reporting.
If your investors are dissatisfied with the amount of information you’re giving them, it’s definitely time to hire a CFO. Investors may want to review everything from your corporate minute books to your internal financial controls as they decide whether or not to invest in your company, and a CFO can make this process easy for you.
A CFO will know what investors want to see and prepare the reports for you.
Once your company gets to a certain size, additional legal and compliance rules kick in, and you will want the advice of a seasoned expert to help you navigate these regulations. Not only will a CFO help you to stay within government regulations, but he or she will also help you to manage the risk associated with quick growth.
For more information on if and when a CFO is right for your business, download our free guide below:
Set your business on the right path with this simple guide.
Make sure you’re on the right track with this online checklist.
© 2022 Altus Financial, All rights reserved.
Altus Wealth Pty Limited ABN 55 649 956 212 is an Authorised Representative of Altus Financial Services Pty Ltd ABN 24 637 026 825 an Australian Financial Services Licensee (AFSL no. 520266). Altus Financial Services Pty Ltd is not responsible for the advice, products and services provided by Altus Accounting. Julie Azzi is a credit representative (CR No. 366834) of BLSSA Pty Ltd ABN 69 117 651 760 (Australian Credit Licence 391237).
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