Small businesses typically take 2 to 3 years to grow, and not many manage to get to that point. A good pace for business growth is around 15-25% annually,  and this is often achieved through careful management of revenue, sales, cash flow, and market share. Momentum is critical, and businesses need to find the resources to maintain it. 

Quadrant Advisory often gets clients at this level of growth. As one of the leading CFO consulting companies, growing businesses seek our services to maintain their growth by hiring a CFO that has the skills to help them do so. When it comes to managing crucial financial decisions and forecasts that bolster business growth, a talented CFO can make a significant difference.

When Do You Need a CFO?

Too much time expended on accounting

CFOs can significantly decrease the time and workload a business spends on accounting concerns. Instead of spending hours auditing and analyzing cash flow, transactions, as well as business performance, a consultant CFO can do the job for you.

This doesn’t mean that you’ll have to be completely hands-off—the CFO can continue to seamlessly collaborate with you and your team, providing you with the most up-to-date analytics about your accounting.

When more reports are necessary

As a company grows, it requires more data and information about capital, profits, and other factors that impact its financial health and, thus, its future growth. To create comprehensive reports, these transactions and concerns about the cash flow need to be documented as thoroughly as possible. Reports and compilations of this information help companies make informed decisions on how their business grows.

A CFO can help you track the different aspects of your business operations, creating spreadsheets and helping you sift through financial information. By creating detailed financial reports on a monthly, quarterly, or annual basis, you’re better equipped to make decisions about the management of your business. Also, you get the data promptly, which allows you to keep up with the present and future business trends.

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Rapid business growth

Some businesses experience a significant amount of growth in a short period. These businesses may have produced a hit product or service. A suddenly high influx of customers and a rapid increase in demand for the product forces a company to scale up quickly. This could lead to a cashflow crunch or operational inefficiencies as the business struggles to keep up.

Having a consultant CFO can help you manage this sudden, rapid growth in a way that is beneficial to your business. They can outline where the operational inefficiencies lie, provide sound advice on adapting to a new business structure, and even find out where the money sinks are. They are leaders and help business owners manage the pressure of customer demand and internal tensions.

A need to update accounting

When a business has outdated accounting practices, it could lead to inaccurate and poor data. Furthermore, if the practices are inefficient, there may be a challenge to getting the financial information when needed. 

Consultant CFOs are prepared with the most updated business accounting methodologies and the knowledge to operate cloud-based and updated accounting software. The CFO can ultimately make the accounting upgrade and conversion for you. 

A need to get more capital

With business growth comes the need for more capital for scaling up, expansions, and increased production. If a company has incomplete financial information, banks and investors will not be likely to provide the loans or investments that a company needs. 

Having a consultant CFO can present detailed reports that have important financial information, giving the company the best image and opportunity to gain the financial capital it needs. Credible financial history is essential to secure enough capital for growth.

Getting the Services of a CFO for Less

Most companies undergoing growing pains may not be able to afford the time and capital necessary to recruit, interview, and hire a full-time CFO. Because of this, CFO consulting services become even more indispensable, as it provides them with access to the skills and talents of a fully qualified CFO ready to get to work.

Quadrant Advisory’s CFO consulting services empower companies with our roster of highly skilled and experienced CFO consultants. Thoroughly vetted and trained, our CFO services can ensure that you get the financial management support that your business can benefit from without the high costs of a full-time hire. Contact us today for a consultation or read more about our services.

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