Most entrepreneurs do not have enough hours in the day to get everything done. They have to prioritize what they are going to get accomplished and when.
Often, it's the financial side of a business that falls to the bottom of the list and then falls by the wayside. An entrepreneur may have someone maintaining their books, preparing their taxes and generating reports, but there is frequently no one on the team with the time or necessary skills to review financials and understand the story the books are telling and implications for future actions. They also don't have unlimited resources to solve financial problems and can't afford or it doesn't make economic sense to make a full-time financial hire. They become frustrated, feeling like they are stuck and working more or harder to stay where they are.
In the intersection of these problems is where a Virtual CFO (Chief Financial Officer) can really come into play and help.
When properly implemented, a Virtual CFO engagement can be an investment that provides a return, instead of another expense for a business. There should goals and results for each Virtual CFO engagement. In most cases, but not always, they involve metrics around improving profitability or cash flow. Other entrepreneurs have other goals, such as freeing up more of their time. Again, a Virtual CFO can recommend and implement strategies to achieve these goals. Even companies that are very successful can still work towards improving their financial position or achieving other goals.
A Virtual CFO can add to the bottom line of a business by:
My goal today was to educate entrepreneurs on the pros and cons of engaging a virtual CFO. If you have questions about how a Virtual CFO could potentially help you or someone you know, feel free to reach out to me.
Adam Shay, CPA (N.C. License Number 35961), MBA, is managing partner of Adam Shay CPA, PLLC. He focuses on minimizing taxes and improving the financial results of entrepreneurs, and is actively involved in supporting the Wilmington entrepreneurial and startup community. For more information, visit http://www.wilmingtontaxesandaccounting.com/ or email him at [email protected]. He can also be reached by phone at (910) 256-3456.
Christina Haley O'Neal - Jul 31, 2020
Tama Tea started as a cafe at 1127 Military Cutoff Road in Wilmington, founded by Rocco Quaranto and Wells Struble – two former local univer...
Who would you invest $100,000 in? That’s one of the pieces of advice we give our Coastal Entrepreneur Award judges each year when they’re fa...
For some local small businesses, Gov. Roy Cooper’s mask mandate meant business as usual....