When you’re in business, it’s important to keep track of your finances. Knowing how best to do that, however, can be tricky.
Traditionally, hiring a full-time chief financial officer (CFO) was the way to go. In a senior executive role, they'd be in charge of assessing and managing the company’s finances. They'd also provide financial reporting and cash flow monitoring.
However, these days, hiring a business consultant has become an equally common practice.
So, read on to discover why it might be time to invest in an external consultant rather than a CFO…
They Save You Money
One of the biggest reasons why consultants have become so popular is because they are the cheaper alternative. Especially in the early days of running a business.
It’s not viable for a start-up or small business owner to recruit a full-time chief financial officer, unless revenues are over approx. $3m p.a.
According to SEEK, the average annual salary for a CFO in Australia ranges from $210,000 to $230,000. Hiring a CFO that works part-time can be expensive too, as they often charge high hourly rates or flat rates for certain tasks. Both come with additional HR and labour costs too, which can stretch a company’s budget.
A small business consultant, on the other hand, will only charge you for the advice you need and the results you want. This is a much better allocation of scarce resources.
They Help In Multiple Areas
A CFO comes to a company with an exclusively financial background. A business adviser from a consulting firm comes with a wide range of high level experience.
They work across many different industries of varying sizes. This includes retail, economics, education, entertainment, hospitality, health and emergency services, to manufacturing, trade, technology, architecture and design, advertising and much much more.
They can offer an array of financial planning services, and come with invaluable skills on how to increase profitability. These include day-to-day business plans and strategic plans, project management advice, sales and marketing, branding, tech support and more.
They Are Flexible
Another benefit is that an outsourced consultant’s advice can be as general or as detailed as you like.
A CFO is a paid member of staff, so their obligations are long term. This means they can't always prioritise areas of urgency.
Management consultants work on what you want them to work on, so you’ll always get guidance and recommendations for the areas that need attention.
An adviser can also be flexible, depending on when you need their input the most. You can use them more frequently during key periods of your business’ lifestyle, such as the initial set-up stage, establishing an e-commerce store, financing, negotiating, entering into contracts or buying and selling. As your company and its objectives evolve, your consultant can evolve with it.
They Bring Fresh Ideas
Finally, one of the best things a business adviser can do is help you think outside the box. Both financially and operationally.
Business owners and managers are busy, so they don’t have time to consider more efficient or effective methods. They often don’t have the specialist knowledge required either.
A consultant does, and their previous successes (and failures) with other clients will determine how they approach your business and its needs. They will pick up on bad habits, find good opportunities, and suggest new ideas for growing your business online and in-store.
TR Consulting offers a range of business consulting services. Contact us today to learn how we could help boost your business!