OCFO announces a Four-Step Process in Business Growth

PRESS RELEASE
Published February 10, 2023


With businesses facing complicated headwinds in 2023, the question arises: Is there scope for business growth in tumultuous times?

Louw Barnard, CEO and Founder of Outsourced CFO, believes it’s more than possible.

“It’s important to understand your business's current financial situation,” he says. “The financial position of your company is important not only for the day-to-day running of your business but also of crucial importance if you ever decide to shop around for investment capital. Your financial strength can be a clear indicator of the potential of your company and a selling point for investors. Analysing your current financial situation means a complete evaluation of categories such as assets, liabilities, equity, expenses, revenue, and more. These elements are measured through various business-related financial formulas that allow you or your finance team to get an exact overview of your financial outlook.”

Are there any ways to improve the financial position of the company?

We asked Barnard if there were simple things business owners could do. He suggested four basic starting points:

“Financial planning is essential. If you want a clear understanding of how your business is doing financially in order to plan and strategise, a fairly thorough understanding of your financial statements is essential. Keep in mind that your financial statements are only a starting point for analysis and that you will need the assistance of a Chief Financial Officer (CFO) to consult and help you identify any red flags and really dig in for useful trends.

“For instance, if your accounts receivable is lower than in the previous budget year – it might mean that you are invoicing less – or actually collecting your money faster. So the numbers are really only the beginning. The key is to use your statements to spot trends and anomalies, and then follow these up with further investigation in order to draw a useful conclusion that can be turned into an action plan.”

“Really knowing the numbers can help drive the strategic direction of your company. How to think about financing expansion. How to approach global structuring for long term wealth protection,” he continues.

“It’s also important to make a budget and stick to it. A detailed and realistic budget is one of the most important tools for guiding your business and ensuring long-term profitability. Budgeting is defined as the process of preparing and overseeing a financial document that estimates income and outgoings for a specific period and allows you to plan your finances accordingly. It identifies your available capital, estimates your spending, and helps you predict revenue.”

He also points out the importance of saving money and keeping within your budget.

“Even if you have experts on hand to assist with budgeting and forecasting, it still pays to see where you can cut costs in order to ensure the financial health of your company,” he says.

“You can’t expect to know everything. This is why we believe in the importance of outsourcing. Knowing your company’s financial position and health is crucial for decision-making and management in general, but in today’s fast-moving world, it can be difficult to keep on top of regulatory changes as well as new technology and software. This is where you might need a CFO to guide your decision-making, but find yourself unable to justify the outlay,” says Bardard.

“For a small- to medium-sized business, a full-time CFO is often too expensive. A fractional CFO like Outsourced CFO in your corner can help you navigate these important crossroads and set you on the path to financial success.”

Using OCFO to improve the financial position

As an entrepreneur, it pays to do the work upfront and ask the difficult questions to ensure that he has a good overview of his current financial outlook and is in a position to improve his company's finances. It’s not just about balancing the books, but about looking ahead holistically and planning for the future. For this an entrepreneur needs an accounting partner with experience and vision, like OutsourcedCFO.

As an expert in providing outsourced CFO services, OCFO can contribute to the financial and strategic success of business, without adding to your payroll burden. Barnard says all types of businesses are welcome to contact him for a quick consultation to see how they can help a business not only weather the storms of 2023, but thrive in them.

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Distributed by JamJar Media

Visit www.jamjar.pro for more information or interview requests.


Release ID: 521506

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