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.
With the new normal becoming a reality for everyone, how can we prepare our businesses to survive and thrive during this unprecedented time? TGG Founder & CEO, Matt Garrett, and Stacey McKibbin, CEO of Consilio Consulting discuss the importance of the numbers in your business, and how to better understand how to come out of the COVID-19 pandemic on top.
In response to the economic impact of coronavirus, Congress rolled out the Main Street Loan Program to help businesses get funding to stay afloat. This program provides $600 billion in financing for all businesses. Before you consider applying for this loan program, there are a few things to consider.
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 businesses grow and change, it is necessary to re-evaluate your relationship with your Certified Public Accountant (CPA) from time-to-time and assess whether that CPA is the right match for your business.
If your business has grown significantly since you hired your CPA, now might be a good time to look at that relationship. Here are questions to ask yourself and your CPA to better judge whether you are well-served and tips on how to find the right CPA if you discover that it is time for a change.
Liquidity is vital to riding our crises and times of financial uncertainty.
Business liquidity during times of instability is vital to longevity and ultimately, to survival. Having liquidity allows a business to continue to meet payroll and fulfill operating costs and expenses.
Here are a few ways to look for liquidity during this time of uncertainty:
Reduce Overhead Costs
You have a plan that’s specific to your business. Now what? How do you execute on this big picture plan? Start by using your budget and forecast to run your business by the numbers. Running your business by the numbers also means tracking Key Performance Indicators (KPI’s) and establishing a regular cadence for meetings to be able to execute your plan and measure your results.
Cash is king. Everybody knows it and yet businesses are lax in their cash flow reporting and forecasting. CEO and founder of TGG accounting, Matt Garrett explains why “cash is king” and what you can do to have more of it and move the cash you have more wisely.
55% of businesses are failing in the first four years. According to The Brookings Institute 11% fail every year thereafter. This is all attributed to lack of cash. Here are 6 elements of cash flow management to watch:
- DSO (how fast you get paid)
- DPO (how fast do you pay people)
- Discounts – give them to get paid faster, ask for them to reduce expense
- Human capital management (utilization)
- Inventory management