Financial guidance for any-sized enterprises

Embarking on the journey of a new business is exhilarating and – as you already know - every new business launch comes with its own set of financial challenges. Many entrepreneurs tend to focus primarily on their annual tax returns, and inadvertently miss out on the financial guidance and stewardship that they need to navigate pitfalls and successfully grow their businesses. They find themselves steering their business without a clear understanding of where the money is coming from and where it’s going.

You know that as your business matures you want help with financial strategy, but you also know that hiring a full time Chief Financial Officer (CFO) is outside your budget. There is another option tailored for smaller businesses; have you heard of Fractional CFO services?

Fractional CFOs provide the same financial guidance and experience as a traditional CFO but on a part-time contract basis. In fact, contracting a fractional CFO may be even more beneficial than a traditional CFO. This is because fractional CFOs work with multiple companies and often specialize in specific industries. That’s a lot of experience and knowledge that you can draw upon for a much smaller price tag than hiring a full time CFO.

What is the difference between an accountant and a CFO? In your life as a successful entrepreneur you will work with three accounting specialities: a CFO, a business accountant, and a tax accountant, working together as your financial team.

**Business accountants** handle the day-to-day transactions (the bookkeeping part). In addition, they manage the technology that makes your accounting flow smoothly (and makes business accounting services more accurate and less expensive) and they help with your operational needs, such as helping to manage your inventory records, handling your invoicing, and monitoring your accounts payable and accounts receivable.

Guildstreet’s business accountants focus on making sure that your accounts have only clean data: reviewing and reconciling, making sure your financial estimates (accruals) are captured, making sure that your every expense is counted and allowable under CRA rules. Our business accountants calculate and file sales tax in multiple jurisdictions and help clients if you are reviewed or audited by the CRA.

Why is clean data so important? Correct information in your accounts means that the tax accountant can compile your financial statements and file your income taxes quickly. And you know that quick results keeps the extra charges to a minimum. No added costs! The tax accountants that we partner with also work closely with our business accountants during the year to make sure that you, the client, has good tax planning advice and will not suddenly discover nasty surprises at tax time.

Which brings us to the Chief Financial Officer. What can a CFO do for your business? A fractional CFO is your ultimate business support strategist. This is where the magic happens. That nice clean data that we mentioned above allows your CFO to provide you with a very clear picture of your cash flow strategy, and any other scenario answering your questions and steering your business success. And nothing beats having a well-informed consultant to talk with about your plans and concerns.

It can’t be said often enough – if you know your numbers you can steer your business to spectacular results.

Think of some of the questions that you can ask and consult with your fractional CFO:

Are my product sales numbers showing the complete picture?
How do I seek additional financing?
Can I afford to hire that additional team member?
How do I budget to grow? How do I know that I am staying on track.
I’m looking at adding a new product line – which of my products are doing best and why?

Your CFO is your main support and will help you ensure that your business is equipped to deliver and to grow to match your goals.

A CFO is the financial guide that any business – new or seasoned – needs. And what should you expect transformational financial guidance to look like?