When February comes around I think of many things: Valentine’s Day; Black History Month; and of course, the evaluation of finance functions. Over the past decade that we’ve been working with clients, we’ve observed that February is consistently the time when companies are taken aback by issues with their end of year reporting. If your company is still reconciling October/November bank statements or you don’t know whether you’ve had a profit or a loss as you’re reading this article, then your accounting function needs a boost. 

Having an adequate finance team will enable you to do the following:

1. 1. 1. Prepare a Budget and Forecast for the start of year 
      2. Develop Key Performance Indicators (KPIs) to measure how the company is performing against expectations
      3. Ensure a “Perfect Package” of tax materials is ready well before the tax deadline 

If you feel that your finance staff is not currently adequate, you should consider hiring a Fractional CFO to review your finance operations and determine whether or not:

1. 1. 1. Your policy and procedures are best-in-breed for your company’s industry/size
      2. Your staff is sizable enough and whether specific individuals are in the right seats
      3. You have adequate cash flow over 90/180/360 day periods (or not!) 

Many companies wonder about the right time to hire a full-time or part-time CFO. Here’s what we think: 

As a business owner, your company should be providing you with the necessary business reports, metrics, and information you need to be able to make informed decisions based on strong financial analysis and data points. If you feel that your team is not hitting the core objectives detailed above or if you’re spending your time doing these tasks, STOP. Hire a Fractional CFO who will turn your finance department from being a cost center to a revenue driver.  

Take-away: If you’re trying to run your business in 2024 and find yourself stuck in 2023, reach out to us at info@acceleratingcfo.com.