- December 10th, 2013
- John Dillard
- Virtual CFO, Business/Tax/Financial Consulting, Business Loans/Money Management
- 0 Comments
Is your company experiencing exponential growth?
Is your accounting personnel being stretched beyond their physical and intellectual limits?
Are you wondering if it’s time to strengthen your management and financial reporting?
The below recap will help guide you in deciding if it is time to hire a virtual CFO for your entrepreneurial business.
Top Five Ways to Know If It Is Time to Hire a Virtual CFO
1. Your financial statements are being done later and later in the month. In today’s high technology world financial statements should be able to be completed by the fourth workday following month-end.
2. Your bank reconciliations are falling behind. A key component of good internal control and segregation of duties requires someone independent of check writing to receive bank statements, perform the bank reconciliation, review the cancelled checks and documents for company checks.
3. Inconsistencies in financial reporting. Proper cutoff procedures for month end closings and analysis thereof are essential. Turning financial data and statements into applicable actionable management information is critical to financial success.
4. Reporting at core levels. In order to grasp the “bigger financial interrelationships of data to operations” it is essential to capture data and operational results at their lowest denominator.
5. Management Reporting. Exponential growth requires a heightened awareness and understanding of operational standards, goals, quotas and performance by individual, operating unit, department, etc. Best Practices would include a detailed reporting process of tracking all key operational and financial units/statistics.