Virtual CFO Top Tips

Our Virtual CFO team develops customized strategies for each business specific situation to assist them become more profitable and reach their lifestyle goals. Every individual business is different and needs to be reviewed on its own merit and then a strategy put in place to optimize the business. 

Notwithstanding the above, in the process of delivering Virtual CFO services for our clients, we have developed the Five strategies here that can be applied to any business, at any stage. These strategies represent actions business owners can take straight away to become more profitable and reach their next important goal.  

These concepts won’t beat getting tailored financial advice, but they will get you thinking about the right things to optimise your business. 

1. Know your Cashflow 

Cashflow is King as they say, so make sure that you have an accurate cashflow forecast so that you can see the future and where any issues might arise before you get there.   

2. Build or Update your Business Plan 

To understand the first Top Tip you really need your cashflow to be part of your overall Business Plan to be able see the net effective of your business activities and how your decisions can influence your overall business. Your business plan maps out your businesses future and helps you make the most of your opportunities and reduces your risks. Keeping it up to date is critical to understanding where you are at and where you are heading…  

3. Structure your Chart of Accounts to effectively manage your resources  

Monitor your staff utilisation, EBITDA (earnings before interest, taxes, depreciation, and amortization) and or stock turnover. Ensure your Chart of Accounts shows you what areas of gross profit of items and services are the highest and net you the most profit. Once you know the data you can better control where your efforts will net you the biggest benefit.