Do you know the Value proposition between an In-house Accountant and an Outsourced CFO?
If you’re keen to grow and scale your business, switching to the benefits of an Outsourced CFO could have a huge impact on your future destiny.
You’re running a business, so you probably know the legal requirements around producing accounts and submitting tax returns.
But do you truly know WHY you’ve engaged an In-house Accountant?
And do you understand the value that an Outsourced CFO can add to your company?
As a CEO, Managing Director, Entrepreneur or Business Owner, there are three main areas of the accounting value proposition that you’re probably most interested in:
1. Compliance work – this is the bookkeeping and statutory tax work that’s legally required for you to be compliant with the law. On the whole, this compliance work looks backwards at your numbers from the past (your ‘actuals’), showing you where you have been, rather than where you are going!
2. Performance measurement work – this is the work that aims to improve the financial health of your business. It includes the cashflow, cost and overhead management and getting funding lines that helps you to strengthen your balance sheet, manage your working capital and become a more stable financial proposition. The work is based again on your historic actuals but also has an element of forward-looking forecasting and projections.
3. High-value advisory work – this is the forward-focused, high-level strategic advice that helps you look to the future and plan out your business. This can include helping you to define your personal and business goals, create a 5-year business plan, Talent management, manage your company strategy and focus on growth, value and an eventual exit strategy etc.
To make a success of your business, and to maximize the value, you need an Outsourced CFO who can deliver Growth to your business.
In-house Accountant’s focus on the basic compliance work, internal procedures, with a small amount of performance measurement work thrown into the mix . They make sure your bookkeeping is done and dusted, will file your tax returns and use your historic numbers to produce statutory accounts, making sure you have a clear record of all the numbers you’ve produced and your business is compliant with the relevant legal requirements.
Outsourced CFO’s, however, looks forward rather than backward and has a greater focus on the future. Traditionally, they would provide the compliance work too, but will delve deeper into the financial performance and high-level advisory work that helps you Grow and Scale your business profitably.
Using a Farmer analogy, the Outsourced CFO helps you prepare your land, choose the right seeds, decide how to plant them and make sure you nurture and grow these plants to bring in a better (and more profitable) harvest.
So how exactly does an Outsourced CFO deliver more value?
Looking to the future is a far more productive way of managing your finances than just counting what’s in the bank.
An Outsourced CFO will empower you to understand your business, and will give you the best tools, insights and the knowledge to make good, well-informed decisions.
With an experienced Outsourced CFO working alongside you and your team, your Strategic thinking can be completely revolutionized.
For example, you will:
Stop looking backwards – your focus will be all about looking forwards to what you can change, not just recording your past transactions (the things you can’t now change, even if you wanted to).
Know your numbers inside out – you’ll have a far better understanding of your finances, thanks to the detailed business insights included in your regular meetings.
Get in control of your cashflow – you’ll be able to drill down into your cash inflows and outflows and, by doing so, improve the liquid capital and cashflow in the business.
Streamline your financial processes – you’ll refine and improve your internal accounting procedures, so you’re more efficient and more productive.
Refine your pricing strategy – by reviewing your pricing model, you’ll be able to enhance your margins, boost revenue and make the whole company more profitable.
Stop unnecessary expenditure – you’ll analyze your overheads, expenses and cost base to reduce the money that’s leaking out of the business.
Bring more money and investment into the business – with more robust accounts and projections, you’ll have better access to funding and to private equity investment.
Get a firm grip on your business data – with meaningful metrics being tracked and monitored, you’ll greatly enhance your business intelligence and the evidence behind your decision-making.
Improve the quality of your advice – you’ll have a seasoned adviser on hand at all times, to coach you with his knowledge, experience, oversight and advice.
If you would like to know more about how CFO Coach can help with your most pressing challenge, please email Irfan.Sayed@cfocoach.co.zm or WhatsApp on +260967924720 for a free 15 minute Strategy call.
Helping CEO’s Get Results 🎯 by Growing 📈 & Scaling 🚀 their Business through Value Creation ✅ I Business Growth Strategist I On-Demand CFO I Book a free Strategy 🌠 call just msg me “XCELERATE” 🔺