No big business can afford to be without a qualified chief financial officer or CFO. This role is one of the most important in the company. The expertise, advice, and guidance that these individuals provide are vital to the success of the business.
Big businesses can afford to hire full-time financial experts. Owners of smaller firms though have a bit more of a challenge. Small business owners still need this assistance but they usually do not have the resources to hire a full-time CFO of their own. This is where the part-time CFO comes in.
Here are some of the biggest benefits of the part-time CFO for the small business owner.
Potential Tax Savings
Whether your small business runs as a corporation, a partnership, or a sole proprietorship, it is required to file a tax return and pay taxes on its profits. Small business owners shoulder their fair share of the tax burden, so that makes minimizing these taxes a critical part of running the operation.
If your goal is to minimize taxes while staying on the good side of the CRA, a fractional CFO service may be able to help. Tax experts within their company can use their expertise to identify potential tax savings opportunities which makes running your small business a bit less expensive.
Easier Tax Filing
Even if you do not save a penny on your taxes, a part-time CFO can give you peace of mind and ease your filing burden. Easier tax filings are one of the biggest but least appreciated benefits of the fractional CFO concept. It is one reason to choose this approach.
Whether your small business tax filing needs are large or relatively simple, working with a part-time CFO service can help you stay on the right side of the CRA. This peace of mind alone can more than pay for the cost of these services.
Smarter Cash Flow Decisions
When you run a small business, there is only so much money to go around. Keeping that cash coming in is extremely important for any company. If you try to go it alone, you could end up missing something, and that could lead to poor decision-making and the waste of much-needed funds.
Working with a part-time CFO service allows small business owners to make smarter, sounder, and better cash flow decisions. Using these services, business owners can optimize the cash they have available. This means that the business can make the most of the resources that they have.
Identifying Lost Profit Opportunities
It is not easy to know when you are missing out on potential profits, but a fractional CFO service can help you find these lost opportunities. Since the part-time CFO is outside the organization, they can provide honest advice without any repercussions. Having the advice and guidance of an outside expert can give business owners the distance they need to recognize the opportunities they might otherwise have missed.
Identifying Market Risks
While you are running your small business, you can sometimes miss the risks that exist in the environment around you. From proposed legislation to new licensing requirements, these risks are very real. A fractional CFO service can help you identify and react to change.
Working with a part-time CFO can help you identify the potential risks to your business and its future. Even more importantly, a part-time CFO can give you time to react to those challenges, turning what would otherwise have been a hurdle into a new and profitable opportunity.
As a small business owner, you have too much on your plate already. Padgett Business Services can help by acting like your part-time CFO.
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