Bookkeepers Melbourne: Does your small business need a financial manager or CFO?

 
July 28, 2019 - PRLog -- Small business and startup owners are often unsure whether they need a CFO or not. After all, how can a CFO add value to a young company? There is a perception that CFOs are expensive and are for billion-dollar corporations only. However, the truth is, financial accountants and bookkeepers Melbourne can add a significant amount of value to a growing business through strategic advice that can help improve cash flow, forecast performance and provide insights to profit levers.

SMEs need a commercial minded CFO or financial manager who will focus on driving the business' financial performance. You should understand the needs of your business to know if having a CFO is a worthy investment.

What does your business need?

The most basic need of a business is bank balance accounting where income and expenses from bank statements are tallied for tax filing. It's easy and inexpensive but as your business grows, you would then need an accrual based bookkeeping. Aside from bank balance accounting, accrual based bookkeeping will allow you to use financial data and structure them for analysis. Do you know that bookkeeping is more than an administrative function? It actually supports the finance of the entire business.

Once your data and transactions are properly accounted for, your financial manager will help you understand the financial drivers of your business. If all your business data such as sales, operations, marketing and staff information are centralised, you would be able to understand trends and improve your business performance. These reports are different from your year-end financial report and should come monthly for decision making purposes. Make sure your bookkeeping is done correctly, otherwise these reports will be of no use.

Your CFO can then use your business' historical data to forecast and analyse performance, budget and cash flow. This could be critical for startups. If you're looking for a CFO, make sure they are an expert of your industry and business model so you can leverage their knowledge and experience relevant to your business.

It is ideal to outsource your bookkeeping to a professional early on so your bookkeeper can completely understand your business before it even grows.

As you look for different ways to grow and improve your business, seeking professional advice could prove to be an important and helpful decision.

You can click here (https://www.skyaccountants.com.au/contact/) to speak to business experts and bookkeepers Melbourne. We would love to help you formulate investment strategies and streamline your processes to take your business to the next level.  Our goal is to help you grow your business, find ways to invest more and increase your productivity.
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