Episode 11: Why your Business Needs an Elevated Financial Team
As businesses grow and cross important milestones such as reaching the six-figure, seven-figure, or multimillion-dollar marks, the need for a more advanced and experienced financial team becomes imperative. This is when many business owners realize that they have outgrown their existing financial team or solution. In this blog post, we will explore the reasons why businesses need to upgrade their financial team and how a fractional CFO team can help.
Outgrowing Your Existing Financial Team
Many business owners start with a bookkeeper to manage their finances, but as the business grows, they require more advanced reporting, forecasting, budgeting, and job costing. When they ask for elevated reporting and forecasting from their bookkeeper, they are often met with a blank stare. This is because bookkeepers are trained to handle specific tasks like coding QuickBooks, paying bills, sending invoices, and processing payroll, and are not equipped to provide advanced financial advice.
The Importance of a Higher-Level Skill Set
As businesses grow, they require a higher level of financial sophistication to make informed decisions about growth, profitability, scaling, and pricing. If you’re at the seven-figure mark or beyond, it’s essential to have a team that includes a fractional CFO to provide a forward-looking view of your business and strategic advice on how to be more profitable. A fractional CFO team can help you understand the data that your financial statements aren’t providing, and how to make the best financial decisions for your business.
The Benefits of Working with a Fractional CFO Team
A fractional CFO team brings a wealth of experience to the table and can help take the guesswork out of growing your business. They can provide guidance on when to hire, how much you can afford to hire, and whether you should rent or buy a building. Moreover, they can help you determine if your pricing is set correctly, which sets up every other function in your business’s financial model. If pricing is incorrect, it can restrict the growth and profitability of your business and impact your cash flow.
In conclusion, as your business grows, it becomes essential to upgrade your financial team to support your growth and help you reach your financial goals. A fractional CFO team can provide a forward-looking view of your business, provide strategic advice, and take the guesswork out of growing your business. If you’re interested in learning more about our services, please book a call to chat with us and learn more about your business and financial growth goals.