Startups all share one goal: growth. How to attain that growth will vary from startup to startup, but each will have to find their unique formula if they want to survive. For many, this will include a CFO to provide extra help and support.
A CFO can help your startup grow beyond simply making your finances easier. They can also offer strategic financial guidance and expertise, help with planning, and ensure you make the most of your business finances.
The Importance of Financial Support
On a most basic level, a CFO can help you manage your bookkeeping and basic financials. Even if you find a way to handle your own bookkeeping, you’re liable to make mistakes when you don’t know what you’re doing. And mistakes can cost you. Accounting can also take up a big chunk of your own personal and very valuable time and resources.
Importantly, working with a CFO, even part time, can help take some of these burdens off your shoulders, so that you can focus on what you do best: growing your startup.
CFOs and Strategic Financial Vision
Yes, CFOs can manage your payroll, but they can do so much more. For example, building a budget is one of the best ways to set up your startup for success. A good budget will let you plan for the future and identify opportunities where you can streamline or grow your business.
But budgets are easier said than done, especially in the early stages when getting your numbers right can be tricky. Working with a good CFO can ensure you account for all expenses and revenue streams, plan for the future, and keep track of your budget on an on-going basis.
An outside perspective on your budget also helps ensure you make the most of your current position, while also setting yourself up for future success.
Financial Expertise
Startup owners have a lot of decisions to make. Some, like whether your marketing approach should be focused on social media or seo, may be relatively trivial. Others, having to do with financial decisions, can be make-or-break – and this is really where a CFO can shine.
A CFO brings a wealth of knowledge to the table, in critical areas where your team may be lacking. For example, they can help in the fundraising stage, when you’re trying to decide which type of capital is right for your business. A CFO can also help you transition to cloud-based accounting, figure out whether to pay yourself in dividends or salary, and decide when it’s the right time (if ever) to incorporate your startup.
You know what they say – ‘you get what you pay for.’ When you pay for an expert CFO, you’re not just getting someone to do your boring accounting work. You’re also getting a partner who can help you plan for and execute your vision.
More Options for Startups
Of course, many startups would like to take advantage of a CFO, but worry about the added expense. Remember that a good CFO who has experience with startups can put you on a financial path that can get you more investors and lead to more growth. Ideally, what they bring to your startup will end up being much more than what their salary costs you.
And when money is really tight, today’s online world offers many more options for startups. At Virtual CFO, we offer virtual controller services to many startups, and we also offer part-time and fractional CFO services. Contact us today for more details.
