In the world of manufacturing, where processes run thick and bottlenecks are known to arise, CFO services play a critical role in helping organizations steer towards efficiency, profitability, and longevity.
What once was known as a role for managing a company’s finance and accounting has changed into a role that concerns far greater responsibilities with new expectations.
With automation taking root and instilling itself more into the day-to-day roles of manufacturing efficiency, there are many factors to weigh that can impact the future of your organization.
The Evolving CFO Role in a Manufacturing Company
Digitalization is changing the way manufacturing is performed worldwide. Long gone are the days where CFOs focus primarily on streamlining a company’s financials rather than being more engaged in strategy.
In addition to being on the same page as other leaders in the organization, CFOs must understand the importance of:
- Expanding market presence
- Reinvesting capital into organizational facilities
- Adapting and growing through modernization
The traditional CFO role no longer exists in manufacturing and has transitioned into a strategic advisor position with many operational hats.
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Using CFO Services to Overcome Challenges in Manufacturing
Only CFOs with experience working in manufacturing understand the many hurdles organizations must overcome.
From the impacts of globalization and their implications on present and future business processes, from knowing when not to automate and when to automate, there is much to consider.
Additional factors to weigh that using a CFO would be beneficial for include:
Determining Digitalization Value
Many small and medium-sized enterprises lack the resources, talent, and wisdom for going digital. With CFO services, you can determine the real value of going digital with your business before committing.
For businesses that must adhere to specific data security compliance standards, going digital can help simplify the process with the help of a CFO to ensure accuracy.
CFOs lacking manufacturing experience can be held up in the complexity and volume of ongoing processes and tasks. However, if your CFO possesses deep manufacturing experience, then you can better prioritize investments that provide tangible business benefits.
Business Strategy Leadership
Organizations can benefit from CFO leadership to become more proactive and less reactive with their business strategy.
Additionally, CFOs can help oversee the implementation of accounting and reporting systems that help businesses gain deeper insights into their core metrics. These systems include benefis for:
- Improving Controls: Deploy systems that improve financial oversight, audit tracking, and mitigate financial errors.
- Real-Time Compliance: Quickly remediate issues and ensure tax compliance.
- Financial Planning: Better manage the operational components of cash management, borrowing, restructuring, and equites raises.
- 360-Degree Financial Oversight: Gain an eagle-eye perspective of your business from every angle.
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6 Advantages of CFO Manufacturing Services
Manufacturing businesses deliver a broad range of processes and services that makes outmaneuvering bottlenecks and challenges difficult. With the help of CFO services, you can:
- Save Time and Resources: Hire an experienced outsourced CFO for a fraction of the cost of a full-time CFO while still benefiting from the same level of expertise.
- Get Seasoned Insights: Use actionable insights detailing industry realities, competitive positioning, financial planning, and more to provide industry-specific services.
- Improve Cash Flow Management: CFOs can manage cash flow statements, perform regulated cash flow evaluations, and create cash improvement programs to aid in the acquisition of investments.
- Get Accurate Financial Management and Forecasting: CFOs can ensure proper checks and balances are in order by developing internal accounting controls, providing routine financial reporting, and offering 12-month business forecasting.
- Remediate Financial Challenges: CFOs analyze and improve poor cash flow and profitability, high business overhead and client churn-over rate, capital acquisition, and debt management and loan repayment.
- Strategically Scale Your Business: When the time is right, a CFO can help you scale your organization by determining:
- A cost-efficient tax structure
- Ensuring firm financial infrastructure
- Applying for multi-state registrations
- Helping in the loan and financing process
- Conducting financial risk assessments and financial forecasts
Maximizing ROI With CFO Services for Manufacturing Companies
CFO services for manufacturing companies can improve your efficiency through task automation to maximize profitability regardless of your business model.
For a fraction of the cost of a full-time CFO, you can partner with seasoned CFOs with more than 15 years experience by working with Michigan CFO Associates.
With our experienced CFOs, deep manufacturing industry experience, and flexible pricing models, you won’t find an organization as committed to your business as ours. We are proud of our average NPS score of 9.3, an indicator that our clients remain with us for the long haul. Learn more by speaking with one of our specialists today.