Most business owners know that keeping up with the financial health of your business will help you succeed. What some business owners don’t always consider is that financial planning, forecasting, and modeling are essential to the growth of all businesses. In order to do all of those things effectively, you need a CFO, but it doesn’t always have to be a full-time CFO!
If you are a small business owner you have likely contemplated whether or not you need an in-house CFO or you would like to outsource your CFO services. This can be a challenging decision, as both options can be beneficial to your business. We’ve put together a list of a few advantages and disadvantages for both to help you decide:
In order for a business to run effectively, it must have structures in place that support financial reporting excellence. At TGG, we have created the TGG Way™ to help small businesses receive the expertise they need to succeed. Every TGG client is assigned a team of four accounting professionals to support their financial needs. Here are the roles we believe contribute to the success of your accounting team:
Leadership is vital to a companies success, especially during times of crisis. Therefore, your leadership team needs to be prepared to make educated, quick decisions for the well being of your business. CFOs have a huge role in the decision-making as they understand your business’ numbers best. How can you CFO help your business move the needle post-COVID and beyond?
Here are a few ways:
During these uncertain times, it has never been more important to create profitability. The global pandemic and the closure of most businesses, has caused anxiety surrounding businesses staying afloat. At TGG, we understand how important your business’ profitability is to maintain, especially right now. Here are a few tips to creatively increase your profitability when you may not be able to run your business as usual:
Many people do not understand the differences between the varying roles of your accounting team. For example, Controllers and CFOs hold similar roles with a few key differences. As your business continues to grow, the ability to produce accurate, efficient financial statements will be increasingly essential to your success. This starts with hiring a rockstar accounting team. Here’s the best way to do it:
Many small businesses that are considering their future growth have considered hiring a fractional team to come support their everyday business functions. Fractional models offer many benefits to business owners that choose to go that route. These models can allow your company to get expert assistance at a lower price. Outsourced services are meant to assist and support your company as you grow and expand your business. How can your small to medium-sized business benefit from fractional services?
For businesses looking to expand their business without tacking on the steep cost of hiring an in-house CFO to their annual budget, an outsourced CFO hire can be the perfect solution. In this article we explore the advantages of hiring an external CFO, so you can make a more informed decision for your company.
Managing a company’s resources can feel like a daunting task for some business owners. The challenge becomes even greater for company’s with a high level of annual revenue and a large customer base to account for — without proper financial management, you could be leaving millions of dollars in value on the table.
As the effects of coronavirus continue to unfold, you may have decided that it is time to sell your business and move on. As a business owner, it is vital to have a plan for a possible exit as soon as you start your business. How can you start planning for your business’s future? Here are a few tips:
The SBA PPP Loan funds have been replenished recently and are currently being disbursed among many small businesses throughout the U.S. Recently, Treasury Secretary Steven Mnuchin announced that all SBA PPP Loans of over $2 million will be subject to an audit. That being said, businesses who take out smaller loans may also be audited, but every business that takes out a loan of more than $2 million can count on a visit from the IRS within the next few years.
A controller is someone responsible for all accounting-related activities within an organization. Financial Controllers report to a firm’s CFO. Their duties include the preparation of operating budgets, overseeing financial reporting, and performing essential functions related to payroll.
Staff Accountants are the backbone of any good accounting firm and handle the majority of basic accounting functions for your company. When you have great Staff Accountants, your business will run more smoothly, and your CFO will be able to make the best possible decisions. When it comes to accounting, every small decision matters in a big way for the company as a whole. Here are a few qualities to look out for when hiring Staff Accountants:
Small businesses are among the most vulnerable groups to fraudulent activity. These businesses are more susceptible and face a greater risk of fraud because typically, they have employees working across many different departments as their job description, there is a closer relationship between the staff and owners, there are few oversight procedures in place, their accounting department has less expertise on financial functions, and there is a larger impact on the bottom line of a small fraudulent event.
How can you prevent fraud in your small business? Here are a few tips to help you keep your company safe:
As a developer or private equity firm, it is important to streamline your accounting and forecasting processes—particularly when there is complexity involved—in order to ensure the greatest amount of transparency across your company’s financials. This becomes more complicated (and important) when you have multiple LLCs, a complicated ownership structure, and poor communication with investors. Here are a few ways to ensure clarity in the face of complexity:
A skilled finance team provides strategic direction, sophisticated insights into the company’s financial situation, financial forecasting, growth planning, and tight control over budgets and cash flow.
However, interviewing, hiring, training, and paying full-time salaries for each of these employees can be expensive and time-consuming. Many small businesses just don’t have the resources to assemble a full-time finance team. Outsourcing can help!
As most business owners know, the team behind your bookkeeping is vital to the success of your business. Still, things can get a little complicated when it comes to understanding the roles and responsibilities of each person. In the interest of clarity, we at TGG are always interested in the numbers and transparency, let’s outline each of their roles and responsibilities.
Small and medium-sized businesses have historically had challenging relationships with traditional lenders. When these business owners are in need of more cash flow, they are the least likely to be approved.
If you’re a new business owner you’re going to find it difficult to obtain a traditional loan from a bank. In most cases, any of the following could prevent you from getting a loan:
You’ve been in business for less than two years
You have a credit score below 640
You want to borrow less than 250,000
The good news is that technology in the financial sector is revolutionizing the way lending is done and big banks are no longer the only option for SMB loans. Alternative financing in the U.S has tripled in size from 2014 ($11 billion) to 2016 ($34 billion)*:
When it comes to accounting, a multi-layer structure is critical to provide appropriate internal controls and to produce accurate and timely financials to manage your business. Check out our infographic and click here to read our blog to learn more about each accounting level.
Only one in 20 small businesses has accurate financial statements.
That makes up only five percent of businesses. Almost half of all small businesses experience some kind of accounting theft at their company, which costs them an average of about $114,000 per occurrence.
The Association of Certified Fraud Examiners puts out a report annually that is a giant eye-opener for how much fraud and theft is out there. The numbers are staggering–and it’s was one of the factors that led CEO Matt Garret to found TGG Accounting. Small business accounting can help mitigate these threats.
In an interview with Stay Wealthy San Diego, Garrett shares the story behind TGG and how it’s turning traditional accounting on its head.