Profit is the lifeblood of your business. If you’re aren’t making a profit, eventually you won’t survive. So if you don’t know if you’re making a profit or loss, you’re living dangerously.
Too many small business-owners struggle to work out their profit in a timely way. For some, it could be a month later before they know how their business performed in the previous period. Even then, the numbers could be a little, well, unreliable. For others, it can be more than a month.
This can kill your business. You need to be able to respond to trends quickly – to cut off losses and capitalise on growth as soon as it starts. More importantly, if your cashflow is falling so you may not be able to meet your upcoming expenses, you need to know and fix it immediately.
Old School Bookkeeping Is No Longer Enough
Just recording your expenses and revenues and sorting it all out later leaves the modern business owner in the dark for way too long. Your systems have to bring that information together, analyse and report on it in ways that you can understand and use.
While in-house bookkeepers can do a great job at getting information together, they can’t provide up-to-date profit, cash flow and balance sheet numbers on demand.
See Up-to-Date Profit, Cashflow and Balance Sheet Numbers At Any Time
The combination of a contract external CFO (vCFO) and cloud finance systems allows smaller businesses to get meaningful financial reports without any delay. What’s more, a vCFO can customise those reports to your business, and add analysis and insight to them. That means you know what they mean and you know what you have to do.
A vCFO is a contract external adviser with the expertise and experience of a Chief Financial Officer. That gives you access to the skills and experience usually restricted to bigger businesses at a fraction of the cost.
Using cloud systems like Xero, businesses can choose to use in-house bookkeeping with vCFO support, or a full bookkeeping-vCFO service. If you do, you get up-to-date numbers on demand, with the support of high levels of expertise and insight.
You don’t have to live dangerously.
If you are interested in hearing more about the vCFO services we provide at Inline Partners, please book a free consultation with us.