Many business owners view the accounting function as a clerical, non-value adding activity and a lack of investment in quality systems and people reflect that view.
However, a properly structured finance team can not only reduce costs tangibly, but pay for themselves many times over with skilled analysis of operations, improving the health of a company, and safeguarding against downturns and other inevitable problems that occur in business. A knowledgeable financial team is critical.
On the other hand, utilizing a full-time CFO may not provide the greatest return on investment if the CFO is under-utilized. We’ve worked with many business owners who were pleasantly surprised to learn that they can get the same critical tasks done by outsourcing 40% - 60% of the cost of a full-time CFO.
“The most surprising thing was that I had a full-time, in-house CFO... And I found that Michigan CFO Associates got all of that work done, plus new measurables and objective ways of looking at things in, frankly, less than half the time... They exceeded our expectations.”
Rick Darter, CEO, RAVE Computer
“If the #1 weakness of growth firms is marketing, the #2 problem is accounting. Accounting is often underappreciated. It is seen as a necessary evil… Accounting is often underfunded as a result. Most entrepreneurs, if they have an extra dollar of profits to spend, invest it in either making or selling stuff. Those are good uses of money. However, we’ve seen profits and cash double within a year when business people devote just a little more attention and resources to accounting.”
Verne Harnish, Founder and CEO of Gazelles, Founder of Entrepreneurs’ Organization, and Author of “Scaling Up”