Reasons to Outsource A CFO

A CFO, chief financial officer, is vital to making business thrive. If you run a small business you probably think that you can’t afford such an extravagance. Small businesses that want the financial advice and assistance but not the hefty price tag that CFO’s demand are now looking at outsourcing a CFO.

A CFO handles more financial responsibilities of running a company. With an outsourced CFO, you can adjust their task load based on what you need for your small business. Most outsourced CFO’s are trained chartered accountants so they know how to do everything from developing budgets to providing financial advice.

Reasons To Outsource

Save Money

Financial services can be expensive, especially when they’re coming from a CFO. With an outsourced CFO though, it’s easy for small businesses to find one that fits within their budget. Not only will you save on salary, but also a CFO will manage and guide your finances to save you money.

Flexibility

Small businesses rely on flexibility. Everything, from cash flow to your own role and title in the company has to be flexible to make it work. An outsourced CFO falls into that environment perfectly. They can be hired as your need them and handle different tasks as they come up.

Wider Skillset

Outsourced CFOs are trained and experienced accountants. They have a wide breadth of knowledge, much more than a standard CFO would have. The knowledge they gain from working with other businesses is applied to help yours.

Efficiency

Small business owners find that outsourced CFOs work more efficiently than an in-house one. An outsourced CFO is used to working with new businesses, meaning the learning curve is quicker. They meet deadlines quicker and can tackle more work. Hiring a CFO also means that you will have to focus less on your finances, giving you more time and attention to put towards running other aspects of your small business.

Conclusion

Contact a Toronto Chartered Accountant today to discuss how an outsourced CFO could benefit your small business.  

Businesses Evaluations: When to Get Them

A business evaluation gives you an accurate picture of what your business is worth, and is vital anytime you want to make a change. Here is when and why you should get your business evaluated.

Selling

It’s a good idea to know how much your business is worth before you sell it. An evaluation can help you determine a fair price for it. Having an evaluation is also a good negotiation tactic as you can show potential buyers what it is worth.

Buying/Expanding

Expanding your business is always a good sign, as is buying other ones. To help secure loans it’s a good idea to get an evaluation done before you proceed with expansion. For buying another business it is a smart idea to get an independent evaluation done to determine what it’s worth if the sellers have not.

Reorganization

Every business, no matter how big or small, goes through a reorganization at times. Whether that’s adding shareholders or new partners you might consider getting a valuation done. It’s useful to know how much your business is worth so that you can determine how much percentage investors, partners, and shareholders should get.

Estate Planning

No one ever wants to think about their life after they’re gone but estate planning and creating a will is important. As a business owner, you have to determine what will happen to your business when you pass. A valuation is important to determine the worth, especially if you are dividing it among multiple people.

Matrimonial Separation

Marriage doesn’t always last forever, unfortunately. During a matrimonial separation, all assets are discussed, including your business. An evaluation should be done to determine how much it is worth. You might share the business or you can retain it all and give your ex-spouse something else of equal value in exchange.

Conclusion

Having a fair evaluation of your business and knowing it’s worth is never a bad thing. It can be useful in a variety of situations. Contact a Toronto Chartered Accountant today if you would like to set up a business evaluation.