As a savvy business owner, you know that having a CFO managing your finances can help you improve your profit margins. The problem is that based on the size of your revenues, hiring an in-house CFO won?t provide enough benefit to cover their salary. That?s where a fractional CFO comes in.
Every business starts out with big ambitions for taking over the world. And yet within five years, almost half of them will have shut down. Why is that? Often, the problem is cash flow. Around 29 percent of businesses come to an end because the company failed to break even. That?s why it?s crucial for every business owner to know their break-even point ? the point at which your income is greater than your combined outgoings. The good news is that calculating break-even point isn?t hard, as long as you have the right data.
Running a business has many layers and one of the most important elements is understanding the economics. Revenue and profit may sound like the same thing but each is unique in the world of finances. Here is more on understanding the difference between revenue vs. profit. What both are and how they work when it comes to your bottom line.
These eight strategies don’t just take into account what you charge. They also look at how you manage your outflow of money. Further, they recognize that your mindset as an entrepreneur, and your relationships with partners in your field, can determine your success. Have a look and think about your own business. Do any of these strategies look like processes you can implement, in order to turn your passion project into a viable, thriving company?
Do you need more time to file your taxes or want to see if there are more ways to reduce what you owe? A business tax extension using Form 7004 or Form 4868 gives you more time to file your business tax return without having to worry about the IRS. Keep reading to learn more about how a business tax extension helps you and what you need to do.
At its core, forecasting predicts the future. Though some forecasts seem entirely fictional, the best business forecasts base projections on historical data and sound assumptions. Leave the creativity to the art majors, not your numbers.
Learn why this is important to your company, how to do it, and what factors could impact your actual bottom line. Armed with this knowledge, you’ll be better prepared for more accurate forecasting as time goes on.
“Financial reporting” is one of those catchall phrases so generic it’s almost meaningless. But the financial reports within that umbrella actually mean a lot to your business. Business owners and managers don’t necessarily need to know how to generate the reports, but you should know how to read them. Learn more about financial reporting in general and financial reports that might benefit your company.
Scaling a business is a herculean task. You need to hire talent, build a great product, and sell it. Along the way you need to develop the infrastructure to scale and grow your business. A CFO is key to that process, but you can’t afford one. An outsourced CFO can help you get your business to the next level without breaking the bank. Here are a few reasons why an outsourced CFO is right for your business.