Running a business means you will have costs associated with your company. However, an important part of managing your business is learning how to reduce expenses. Working with a CFO company can help you to determine what bills are due when and also how to reduce some of those costs. The best strategies are:
- Outsource departments. The smaller you are, the more outsourcing makes sense for you. This can be done with your finance department, payroll, HR, reception etc. Most departments can be outsourced and hired PT at an exceptionally lower rate than a full time employee.
- Evaluate lease vs owned equipment. In the long run, which is the better deal for you? A CFO can determine your best option and include tax breaks like depreciation.
- If you decide to purchase equipment supplies, buy used. Most equipment can be found used and therefore significantly less expensive.
- Evaluate your credit card interest rates. This is also a task that your finance department can take care of for you. Each business should have a credit card that is working for them in either points, cash back, low rates etc.
- Negotiate lower prices with your suppliers and vendors. Working with a CFO, they can compare and negotiate the best prices for your company. Routinely putting things out to bid can save you money.
- Paying on time - some vendors offer discounts for paying on time. Work with your CFO to determine who will offer these discounts and be sure to pay those bills first.
- Bundle your expenses and only pay for what you need. Cancel all unused services.
- Take advantage of technology. There are many ways small businesses can use technology to cut their costs. Many systems are automated to help you succeed.
- Is telecommuting an option? If you do not need office space, do not open an office. Paying for utilities, rent, supplies etc can really add up.
Why do I need a CFO?
You didn't start your business or become the head of an organization because you are a financial expert. You are there to grow and succeed. The accounting, bookkeeping and financial aspects of your business are important to how you run your company, but it is time consuming and if not done properly, can lead to more headaches down the road.
Keeping track of your bookkeeping and your financial statements is time consuming and difficult to manage. But most frustrating is understanding and interpreting your financial picture from reports. CFOs are responsible for timely and accurate presentations and financial reports in order to capitalize on your growth.