Having a business financial advisor as a part of your team can add value to your business and increase your growth. But when should you hire a financial advisor to help your business succeed? And what type of small business financial advisor do you need? And, most importantly, what kind of advice can a small business financial advisor help you with?
One of the easiest ways to get financial advice for your small business is to hire a virtual CFO. A virtual CFO helps you understand how your business is performing, what changes to make to increase your profitability, and how to get where you want to go.
Running a business can be overwhelming and challenging at times. The benefits of working with a virtual CFO can help you get the financial advice you need to take your business to the next stage and overcome those challenges.
What Type of Financial Advisor Does Your Business Need?
There are three main financial small business advisors that each provide different kinds of financial advice.
Bookkeepers are where most small businesses start and they focus on managing tracking of transactions your business does. The financial advice they typically provide centers on keeping track of expenses and receipts.
Accountants can provide bookkeeping services as well as more complex financial record keeping. They tend to focus on what’s already happened in your business after transactions have occurred, rather than taking a forward-looking perspective. For instance, accountants tend to help businesses with taxes after the tax year is over.
Unlike a bookkeeper or accountant, a virtual CFO takes a higher level look at your business’ financials to give you actionable advice to grow or scale your business. Their role is centered on providing financial advice that helps your business in the future by making improvements to your small business financials. Chief financial officers also can help manage the tasks bookkeepers and accountants oversee.
If your small business needs financial advice to make improvements rather than clean up issues that have already passed, you need the help of a virtual CFO.
What Financial Advice Does a Virtual CFO Provide?
A virtual CFO’s role centers on doing a deep dive into your business’ financials to help you figure out what steps you need to take to achieve your small business goals going forward. Like a personal financial planner, a virtual CFO helps you understand what you need to do to achieve your financial goals by making changes to what you’re doing now.
If you’re struggling with capacity issues or that you feel you’ve maxed out the potential for your business growth, a virtual CFO can help your business build a financial plan to overcome those challenges.
I often also work with my clients to help them overcome organizational and operational issues that affect financial performance of their small business. When hiring a virtual CFO to help your small business, be sure to ask questions about the financial challenges you want to solve and their experience working with business owners to overcome those challenges.
In general, a virtual CFO can provide the following financial advice for small businesses:
- How to solve cash flow problems
- When to take on debt to grow
- How to solve capacity issues
- How to use resources in the most effective way
- When to hire and grow your team
Financial planning for business owners is often more complicated than personal finances because there are significantly more complexities to managing a business. Working with an experienced virtual CFO can help you get the financial advice you need.
What Can a Virtual CFO Do for You?
If you’re feeling overwhelmed or lost when it comes to financial planning for your small business or maybe you feel like you’ve hit capacity when it comes to growth, hiring a virtual CFO might be right for you. The costs of working with a virtual CFO to get the financial advice you need can save you in the long run as well as help you achieve your goals faster.
As a virtual CFO, I have years of experience helping businesses of all sizes with their finances and reach their goals unique to their business. It’s all about creating stability, predictability, and solving problems to make your company become the success you’ve dreamed about.
I offer a Good Fit call to talk through your goals and how I can help you. Schedule your Good Fit call today to learn more about what my virtual CFO services can do for your business.