Communicate well with your virtual CFO to keep your family business flying high.
Communication is a vital part of existence; that is why communication is an incomparable factor in business. Without communication you cannot run a smooth business operation because no one can read your mind. You need to let the people around you know what you want. When facing challenges, often your virtual CFO is the first person with whom you should talk.
A virtual CFO is in charge of all the bookkeeping, accounts, transactions ledger, and business records. This person keeps track of every single penny coming in and going out of the business; balances the accounts so that the present state of the business may be seen at a glance, and works with you to develop strategies for growth.
Recommended reading for you: Outsourced CFO Rates
There are obviously many reasons why you should have good communication with your virtual CFO. Consider these two areas for example:
1) ANALYZING YOUR FINANCIAL RECORD
A good virtual CFO will help you to analyse the trading, profit and loss statements or inventory and the like. The virtual CFO will always put everything into the record and identify any errors, shortcomings, or debts to your family business.
A good virtual CFO will also look into the business and weigh your options, when it comes to decision making. The only way you can have proper knowledge of the process is to keep in touch with that valuable brains trust.
Your virtual CFO needs to be someone who is good at explaining issues simply and clearly; someone you trust and someone with whom you have an excellent rapport.
2) DEALING WITH BOOKKEEPING TO TAX PAYMENT
A virtual CFO is mainly believed to deal with payment of taxes and maintaining the record. Yet, there is so much more to the job than keeping a regular record of the stock, interpreting business reports and predicting the likely effects of business decisions. Poor communication with your virtual CFO could be disastrous especially if you failed to take account of your full tax obligations. Such an error could attract serious penalties and/or result in the closure of your business. Equally, you could miss out on growth opportunities.
In conclusion, find a virtual CFO whom you feel is a good fit for you and your family business. Keep in touch with them, build a strong relationship and see that synergy take your business to the next level.