How Outsourcing CFO Services Leads to Growth

Growth is the goal, and in this day and age, outsourced CFO services are a one-way ticket for businesses to reach their growth goals.

As the world around changes, updates, and digitally integrates, you’ll find yourself falling behind if you try to keep up on your own. 

This is where an outsourced CFO can help. They are well-versed in financial planning and know what it takes to build a sustainable accounting system, a strong cash flow, and budgets and forecasts that keep your business needs and goals in mind.

Here’s how:

Outsourced CFO Services Means a Sustainable Accounting System

Your system needs to be able to grow with you. If growth leads to strain, that’s a sure sign your system isn’t able to sustain growth.

To ensure your system can grow with you, you need processes that will suit your needs now and in the future. This includes a tech stack with easy-to-use tools. Your system will be organized and efficient to track progress and make adjustments quickly.

Outsourced CFOs are experienced in building systems meant for business growth. They have time you may not to evaluate your business landscape and develop a financial system that helps you meet your current and growth goals.

Cash Flow Management

Cash flow is your business’s lifeblood. It measures the flow of money in and out of it. There’s no disputing; you should track it and always be looking for ways to increase it.

Excellent cash flow changes everything. When you manage cash flow, you understand the real cost of day-to-day operations and can use that knowledge to streamline and take advantage of growth opportunities.

Cash management includes:

• Finding out how much cash you have on hand
• How much money you will need in the future
• Evaluating the cost-benefit for technology and other investments
• Pinpointing asset changes as they occur (or anticipating them)
• Knowing your liabilities
• Keeping your cash flow under control
• Timely invoicing
• Timely payments

Outsourced CFOs know what it takes to improve cash flow, can monitor it closely, and make adjustments to improve when needed. 

Outsourcing financial services gives even smaller businesses access to expertise, analysis, and resources they might not otherwise think they can afford.

And sadly, they may feel this way because of poor cash flow management that an Outsourced CFO can fix. This is a massive financial failure you can avoid.

Budgeting and Forecasting

Overspending is often where businesses fail. 

Take customer acquisition costs as an example. They just expect it to be worth it down the line. But if they’re not also spending to increase customer lifetime value, this spending never pays off.

A budget is essential to keeping spending on track, so you’re spending in the right places and ensuring what you’ve allocated works together across the budget to achieve goals.

Budgets also go hand in hand with cash flow management. You can make easier purchasing decisions with a budget because you already know how much you’ll spend on that line item. 

Sticking to a budget ensures you are not overspending in one area, leaving other areas underfunded.

Your budget should be time-bound, whether that’s quarterly or annually, and it should account for:

• Every source of revenue
• Every possible expenditure

Your budget should be realistic while allowing you to operate within your means and manage unexpected revenues and expenses. A reasonable budget can also help you identify opportunities and forecast what you’ll need in the future, like having money for those technology investments you know you need to grow.

Forecasting lets you see where your business is headed and serves as a guide to building a better budget, meaning this all works full circle. With forecasting, you are looking forward rather than backward. 

You can predict where things are going and use this understanding to implement data-driven strategies to confidently move towards your goals.

Outsourced CFO services keep your business moving toward growth and realizing it.

KPI Development and Monitoring

Tracking the right KPIs is essential for a growing business. The data your KPIs generate benefits your financial reporting process and are key to giving you a big picture view of how your business is doing.

With consistent monitoring and analysis, you can quickly make adjustments to get back on track when your numbers are off.

Relying on data is also a long-term strategy in that you can use it as a tool for making better business decisions.

An outsourced CFO can help present opportunities within your data that could add value to your financial strategy.

You can rest easy knowing your outsourced CFO is spending the time you don’t have, getting to know your numbers and monitoring the progress of your financial goals.

Outsourced CFO Services Could Be the Right Move for You

As your business grows, you need your financial system to grow with you. You need someone who can manage and maximize your cash flow, guide you toward the right business decisions, and help you move your business build a strategic financial plan.

Hiring a full-time experienced CFO may not be in the cards, and that’s where NOVAA steps in.

NOVAA’s technology forward, cloud-based outsourced CFO services will help you get a handle on cash flow, create a budget and system that works, and take advantage of the opportunities to grow your businesses. Book an appointment today.