4 Reasons To Work With A CFO
It happened again…..
This spring I have been travelling and speaking with different groups of entrepreneurs. One of the things I offer to the people in the audience is an opportunity to have their reporting reviewed to make sure it is giving them the information they need to be making financial decisions with confidence in their company.
One experience I have over and over is a business owner brings me their P&L and Balance Sheet thinking it is good reporting because they are working with a CPA. Unfortunately, what they have is a mess. You see, a CPA’s job is to keep you in compliance with the IRS and to file your tax returns from information you provide them. Hopefully they are working for you and not the government and letting you know strategies that will save you from paying too much in tax.
When you bring them your information, they take what they need to file the tax returns and send you on your way. They don’t clean up your accounting. Why this is a problem for you is you don’t have accurate numbers to make decisions from when it comes to the management of your business and your cashflow.
How does this problem show up?
You are paying too much in tax.
You never have enough money in the bank to invest in the growth of your business.
You are creating debt.
You feel like you are spinning your wheels financially.
You know, as a business owner, you need to have some form of accounting. I have seen some very creative accounting in my day; things that make sense to you, income tracking a coach showed you, books you have inherited so you keep them going, a glorified check register a friend made for you, or possibly a bookkeeper who assured you they knew what they were doing.
This is why I believe so strongly that when you are first getting started working with an accounting services firm like ours is so critical. This is the role of a CFO (Chief Financial Officer). Until you know how to drive your accounting, you know you have solid reporting, you know your tax strategy is handled, you know your numbers and the story they are telling well enough you can spot errors quickly and ask the necessary questions to keep you on track, only then can you work with confidence in your business.
Until you can handle all of this on your own, do yourself a favor and work with someone who can support you in this area. It will save you so much money and time!
Here is the good news. You have something to begin with. Let us support you with a solid financial foundation so you are financially healthy not only in your business, but more importantly, in your life! It is possible to have your money work for you, schedule a time today to see your next best step for getting started!
PS The best way to keep more of the money you make is to connect with your numbers! We would love to be your CFO so schedule a time today to see if we are a good fit for you.