Considering that every business activity impacts your company’s financial performance, it’s easy to understand why finance must be one of your most critical responsibilities. Without a solid financial team, businesses are much more likely to make uninformed financial decisions that could cripple the company in the short- or long-term. According to a recent Small Business Accounting Report survey, only 40 percent of small business owners feel they are extremely or very knowledgeable on accounting/finance.
Owners who benefit from the support of a skilled financial team have greater opportunity for profitability and growth and are more likely to outperform their competitors. That’s why we love the finance team, and so should you.
If you’re unconvinced regarding the advantages of having financial professionals working to move your business in the right direction, consider the reasons why we believe utilizing an expert finance team should be your top priority.
A finance team drives strategy.
Business finance goes well beyond processing transactions and updating your accounting books. A great finance team helps you see beyond your data— providing intelligent information for strategic decision making. There’s no substitute for the wisdom that real financial acumen brings to the table. Having a reliable team in place could mean the difference between business acceleration and an off-course crash.
A finance team checks the rearview mirror AND looks at the road ahead.
Business finance involves reviewing your accounting entries and reporting accurately on historical numbers. While a must-have for attracting and keeping sophisticated investors, this is just one aspect of a successful financial management effort. A look into your business’s past performance doesn’t do you much good if you don’t utilize that information to plan for the future.
A great finance team looks ahead and around the corner. They not only calculate your existing financial status, but also identify warning signs, risks, possibilities and opportunities that may be headed in your direction. From cash flow recommendations to tax implications, budget allocations and everything in between, you need the expertise of professionals who truly understand how your numbers relate to business failure or success.
A finance team helps set a sound course.
In addition to equipping your business with the financial guidance and support it needs to thrive, a valuable finance team imposes discipline into your organization without crippling it. By tracking your company’s financial progress against your business plan, and by providing the financial structure your organization needs to meet designated milestones, your finance experts pave the road to financial stability.
Too many companies make inaccurate forecasts, fall behind on record keeping, fail to budget wisely, use cash frivolously and fall prey to other financial missteps that can jeopardize the business. With the discipline and knowledge that good finance professionals deliver, you’re in a better position to stay on course, overcome unexpected challenges and make smart decisions that benefit the business.
A finance team brings visibility to blind spots.
A good CFO serves as a consigliere to the owner/CEO, who may miss critical financial insights due to the fact of being stretched in many different directions. That’s why having an experienced CFO is so integral to your business journey. The head of your finance team supports your company with expert advice and transparency into aspects of the business that you may not have the time or background to handle on your own.
A finance team steers investment and loan relationships.
The CFO plays an essential role in terms of maintaining relationships with your investment base and financial institutions. These financial bodies expect accurate, up-to-date reporting on key performance metrics and other financial information, which should be managed and delivered by an expert. Conversely, your CFO should be able to help you understand the perspectives of your bank and auditors, relaying a clear picture of their expectations and where they stand.
When it comes to addressing your company’s financial management, there’s no doubt an expert finance team can make your business a more fruitful enterprise. If you want to accelerate business profitability and growth, it’s time to bring the right people on board. You’ll love the peace of mind it brings to running your business.
Have questions about what’s involved in partnering with a professional finance team? Contact us today to talk with one of our experts.