Organized finances are a necessity, regardless of the size and growth of your enterprise
Large enterprises have their own CFO who deals exclusively with company’s financial operations and helps with strategic and other financial decisions. Smaller enterprises usually do not have the scope and the means to set up their own finance department. This makes decision-making much more difficult.
Getting outside assistance for corporate finances makes sense when:
- You don’t have a clear financial picture of your business (monthly financial reports, etc.)
- You encounter liquidity or working capital challenges (could happen despite profitability)
- Your company’s profitability is below industry standards
- Your financing cost is too high
- You need additional financial resources to develop and grow your enterprise
- You need a sound foundation for making investment decisions
Services provided by the external CFO
An external CFO provides all the services that are essential in keeping the corporate finances in order and in setting up the company’s financing function in a professional way. Examples of such services include:
Financial analyses
- Financial business analysis
- Benchmarking analysis
- Cost analysis
- Margin analysis
- KPI analysis
- Lease vs. buy analysis
- Economic analyses
Financial management
- Financial planning
- Setting key performance indicators
- Optimizing working capital
- Optimizing cash flow
- Optimizing sources of funding
- Optimizing profitability
- Setting up payment services
- Setting up controlling
- Preparing for an audit
Five primary objectives an external CFO will help you attain
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1. Detailed company financial strategy
With the help of a CFO, you will always have a detailed financial strategy for your company in hand, including sales targets, margin targets, benchmarking as well as the integration of advanced and modern ways of doing business in the field of corporate finance.
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2. Financially optimized business
A detailed company financial strategy helps you run a financially optimized business. Financial optimization can thus help you in achieving the desired company profitability, optimize cash flow and improve the company’s market position. With improved financial strength, a company can grow even faster and defend its position in the market.
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3. Higher profitability
A detailed company financial strategy and a financially optimized business lead to higher profitability. This is one of the important objectives of hiring a CFO. In addition, all other important parameters as well as soft factors are taken into account to maximize company’s profitability in the long term.
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4. Cash flow always available
The CFO will help you optimize your business in order to ensure that there is always enough money available. Your working capital (inventory, receivables, cash on hand, payables) will be optimized to keep your business running smoothly.
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5. Risk management and smart investment decisions
The CFO’s overview of financial operations continuously helps management by identifying financial weaknesses of the business. The CFO also has a proper overview of the company’s financial operations, so that he/she can determine which investments are appropriate, where the money leaks are and which investments should be increased.
Hiring a CFO means having a person who knows your finances in detail, is always available to help you with your financial decisions and is able to advise you on the financial aspects of your business.
We can also help you set up controlling.
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