Are you struggling with numbers for your business? Haven’t been able to make it past break even? Suffered a loss for a few quarters? Sounds like your company needs to work on its financial planning practices like having a part time CFO or tax accountant at the helm to help sort things out for you:
Forecasting Cash Flow
It’s essential that a business has detailed forecasts for its cash flow, expenses and other variables laid out beforehand. Not only are these essential numbers that shareholders and investors are interested in, but they also help lay out plans and strategies for a business’ proceedings for the foreseeable future.
They create a sense of accountability and can act as a litmus test for how well a business is performing moving forward.
Cost-Cutting
Cost–cutting isn’t about compromising on quality, but figuring out different ways you can save up on your recurring costs. The ideal way is to figure out how you can save up on your production or operational costs without making any apparent changes. It might not seem like a lot but even the smallest of changes can make a huge difference in the long run.
For example, if you switch from a $5 component to a $3 alternative for 1,000 units, you can ideally save around $2,000 in the process.
Opportunity and Risk Analysis
For every business, there are various opportunities that can help it grow and various risks that are a part of any business’ nature. Within your particular domain, there might be some specific risks that you need to be aware of. It’s important having a CFO onboard that can help prepare contingency plans to combat these risks.
Depending on the severity and likelihood, there need to be countermeasures for each risk. Similarly, every business should have opportunity capitalising strategies with viability analysis to ensure that each move for growth is calculated.
Strategic Financial Planning
Strategic financial planning is an iterative venture and requires the efforts of an experienced CFO to undertake. First, it’s important to understand the current financial and market standing of a business. With the help of bookkeeping, financial records and some surveys, it’s easier to determine a business’ current standing.
It helps one understand what financial goals a business should have for the future along with any alternative plans to keep in mind. Over time, the CFO will create a financial plan that can help them achieve these goals along with revisions as more variables become apparent.
Your business deserves to have a strong financial team onboard to help it excel in the market. Find the help you need with Newmarket Accounts. You can acquire our tax and bookkeeping services Melbourne for small businesses and part time CFOs in Melbourne, Darwin, Sydney, Hobart, Brisbane, Canberra and more.
A complete suite of services that you’ll need with regular reporting services, professional tax compliance, tax filing and planning. Reach out to us to take your company on next level.
