Is Your Back Office Keeping Pace With Your Company’s Growth?

By SBS

I was speaking to a new business contact the other day. As with any new introduction, we started talking about our services and “ideal” clients.  As we got into the fractional CFO services that SBS offers, he asked what size client (in annual revenue) typically comes to us for help. I told him it’s not just the amount of revenue, but rather the rate of growth. In other words, some of our best fractional CFO leads come from companies who have experienced significant revenue growth in a relatively short period of time. When that happens, the investment in infrastructure and human capital is typically neglected and isn’t strong enough to support the needs of the larger company. The following issues begin to surface: Poor internal controls No formal strategic plan Dated (and typically undocumented) processes and procedures Poor cash management Legacy employees aren’t qualified to run a large company – the requirements have outpaced their knowledge and abilities. A good example of a “legacy employee” could be your Office Manager. When your company first starts getting busy, you hire a bookkeeper or accountant to run your office. He or she is competent and gets the job done. As your business starts to grow, you hang on to this Office Manager because he or she has been with you through thick and thin and you’re loyal to that person. But at some point, as your business gets larger, it gets more complex. The tasks your Office Manager performed when you were…

3 Important Tips for Hiring the Right Fractional CFO for Your Small Business

By imarketing

As your small business matures, so does its needs. While in the beginning you may have been able to handle all the functions of your business operations with a smaller, unspecialized staff, you’re quickly coming to the conclusion that what you’re currently working with is no longer meeting the needs of your growth driven operation. One of the most important positions in your small business is that of a CFO. At the end of the day, it’s the CFO who makes sure you’re using financial strategies for growth and profitability. Running a small business without a CFO is doable, but it can be difficult. The responsibilities handled by a CFO are not ones that you want to overlook or delegate to the wrong person. You might be thinking about bringing in a dedicated CFO, but the sticker shock of their salary is causing some hesitation, or maybe you’re wondering if you need someone in the position full time when your business is still relatively small. Hiring a fractional CFO is a solution to both these concerns, but choosing the right one is an important decision. Here are three things to consider before you decide. Understand What an Outsourced CFO Does The first thing to do is make sure you understand what a fractional, or outsourced, CFO does and what their role in your business will be. A fractional CFO is someone who performs financial officer responsibilities for your business, on a part time basis, commonly from a remote location with…