Sometimes it pays to go with an accounting firm that has quality consultants and specializes in financial growth services because the ROI can be very significant. Most business owners would consider receiving funding in the form of venture capital investments or bank loans to be the main tools for business growth but getting to a point where you can receive that kind of financing means you need to get statements that reflect a growth strategy. Instead of just going with a regular accountant, a full-fledged financial services firm can give you the kind of service you need to utilize your burn rate effectively and make sure you’re actually getting an ROI coming back in profit. How can this happen?
Keeping The Tabs On Your Burn Rate
As Entrepreneur points out here, your cash burn rate is indicated by both the gross burn rate and the net burn rate, the latter of which is highly important to either loan officers or venture capital firms. But it’s also a way you can sift through important operating costs and analyze your overhead. In reducing your burn rate, you can look items such as property rental rates, outsourcing where you can save on important hiring costs, and other legal and regulatory expenses. Now a higher burn rate isn’t always a bad thing because if you’re able to turn the losses into quick growth, you can build your company better for the long-term. But being able to draw up a good balanced in gross burn and net burn can be better done with the guidance of an accounting consultant.
Hiring An Outside CFO Consultant
Companies who can really get the most out of their accounting departments and know whether certain investments are good ideas are led by a chief financial officer (CFO) who then gives his insights to the rest of the committee. But for some companies who are in the growth phase but cannot currently hire a full-time CFO on staff, it is possible to find CFO consultants at a financial advisory firm. As this article explains, you might benefit by hiring an outsourced CFO to give guidance on a major financial project that you will need to move through quickly but carefully so you don’t deplete the reserves in your accounts. A CFO can also have your accounting department implement better practices and figure out which direction you’re better off heading in investment-wise. Basically, a temporary CFO brought in from the outside can really put your business in great shape for your financial future.
The bottom line is outsourcing your accounting and taking advantage of specialized growth planning from the right firm is one way to get your statements in order and get a good feel for how you can maximize existing capital. Sometimes having the guidance of experienced analysts and those who’ve been in CFO kinds of roles before can help you be prepared to get over unexpected hurdles. You just need to sit down and share with them what you hope to see your company doing down the road and get a feel for whether they’re the right fit.