Running a business isn’t easy – just ask any business owner. There are continuous challenges and pressures and most seem to revolve around money.
The bottom line is business at its core is about making a profit and producing strong financial results. That’s what keeps a business alive. That’s what allows a business to grow and thrive. That’s what gives you financial security.
Do you ever feel as though you’re ‘going it alone’ or ‘in over your head’ on the financial side? If you have, that’s about to change.
In my experience, a savvy business owner is willing to seek professional help when needed. Professional advisors are a business owner’s secret weapon. They fill the ‘expertise’ gap in a small business and give the business owner more power and confidence in business.
A trusted financial expert is invaluable to a business owner who lacks financial skills. It can easily mean the difference between a success story and being a statistic.
Let’s look at the value a finance professional can bring to your business.
1. Expertise. A finance professional has knowledge and skills that business owners don’t have. The beauty of engaging a finance professional is that you don’t have to be an expert in finance. You don’t have to invest time learning something new. You can stay focused on your zone of genius to make your business soar without sacrificing financial performance.
2. Perspective. A business owner is sometimes too close to certain aspects of a business and may have tunnel vision. A finance professional offers an unbiased perspective. This gives you financial insight and clarity in the decision-making process. Being equipped with the financial perspective helps you make better business decisions.
3. Experience. Today, anyone can access mounds of information, data and know-how about starting and operating a business, but that’s not enough. What’s not so readily available is experience, and experience is key to insightful business judgment. Experience, however, takes time to develop, time a business owner doesn’t have.
With a finance professional by your side you instantly get financial expertise, perspective and experience. Now, let’s look at what kind of financial help a small business owner needs.
Business owners must have an accountant. Accountants are highly trained and have analytical and quantitative skills. They ensure the financial information is in accordance with generally accepted accounting principles (GAAP). They prepare the necessary financial reports, and they file the tax returns for the business.
Record keeping is also part of the accounting functions, but bookkeepers usually perform this function because it’s more cost-efficient. Accounting functions should be outsourced – it saves time and money in the long run.
The role of a chief financial officer (CFO) has more responsibility. In addition to overseeing the accounting process in the business, a CFO performs finance activities. To understand the difference between accounting and finance, see “The Important Difference between Accounting and Finance”.
A CFO’s finance activities include managing cash flow, maximizing profits, financial planning, proposing corrective actions, and strategizing to improve performance – all essential to a successful business.
Unfortunately, most small businesses aren’t ready for a full-time CFO. Unlike accounting which can be completely outsourced, finance can’t be outsourced – the business owner must play an important role.
The role of a business owner on the finance side is strategic decision-maker, and that role can’t be relinquished. But a business owner doesn’t have to ‘go it alone’. A financial confidante can help by providing the financial expertise, perspective and experience in the decision-making process.
A trusted financial confidante can be your ace in the hole!
If you want to find out more about how a financial confidante can help you in your business, please click here to contact me to set up a time to talk.