There are numerous reasons why business fail and these can include lack of planning, poor financial management and leadership, lack of profits or marketing strategy, just to name a few. In order to survive, a trade business owner needs to ensure that all the business functions are getting full attention. However, playing the jack of all trades within the business can lead to important business functions being unattended to.
One way of understanding your finances and setting the stage for your business to thrive is to ensure that your business operations are based on sound financial and operational management principles. The former can easily be achieved by acquiring expert advice on business finance through an outsourced virtual CFO.
What is a Virtual CFO
A virtual Chief Financial Officer is an outsourced accounting professional who assists businesses with financial expertise. A Tradies Accountant outsourced CFO provides industry specific insights that enable your trade business to scale. Normally employing a full time CFO might be costly to tradies, however the outsourced option reduces these costs considerably. Whether you have just started your own business or have been operation for a number of years, a virtual CFO can add value in a number of ways.
Why you need a Virtual CFO
1. Understand what your finances mean
What does your statement of financial position mean? Is your business at risk of insolvency? Is your pricing at par with industry benchmarks and how does this affect your bottom line in the long run?
A virtual CFO can help you understand these and other questions that are related to your business finance. While having a busy schedule can mean your business is making money, it can also be that you are not making a profit either. Financial decisions have a huge impact on the success of your business and a qualified CFO can help you analyse the options and help you make an informed decision.
2. Tax obligation management
You can avoid hefty fines by having your taxes filed the right way and on time. A virtual CFO understands the requirements and processes involved in filing taxes. The knowledge, expertise and experience that a virtual CFO brings to your business is invaluable and can result in several benefits that include reduction of tax obligations through deductions.
Freeing up your time by letting a professional manage your income, payroll, compensation and sales taxes enables you to focus on growing your business.
3. Cash flow improvements
Managing your cash flow is more than simply looking at what goes in and out of your accounts and paying your bills on time. Cash flow is the lifeblood of any business, and it is important for business owners to understand the ins and outs of cash. A virtual CFO can help you identify areas in your business that are making you lose money and can potentially bring your business to a halt.
Tradies Accountant is a team of experienced accountants who all specialise in accounting for trade businesses. We focus on processes that will make your life easier while growing your business so that you don’t have to.
Contact us today and find out how our virtual CFO can help your trade business.