Now that you’ve started down the path of entrepreneurship, there are a series of essential roles to fill, like CEO and marketing team positions. However, many people make the mistake of leaving the financial department last in the staffing queue.
Within the financial department, the most ignored position is that of Chief Financial Officer, also known as the CFO. The lack of a CFO is the reason many enterprises don’t make it.
At Gonzalez & Arrambide, we want to showcase the importance of hiring one of our vCFOs to help your business boom.
Duties of a vCFO
The CFO is responsible for managing the financial aspects of your business. Yet, a full-time, in-person, CFO can be costly. This is where hiring a virtual CFO (vCFO) could make a lot of sense for small businesses and startups.
A vCFO is a consultant or business that offers the services of a CFO, but does their job remotely, and usually on a part-time basis. The vCFO will focus on creating high-level financial strategies and putting them into action.
Our vCFOs at Gonzalez & Arrambide can provide financial services on a weekly, monthly, or quarterly basis. Our vCFOs are also ready to provide advice for a specific project. However, if you already retain the services of a full-time CFO, it would be redundant to get a vCFO.
Yet, if you have a new start-up, keep on reading to learn why a vCFO is the best option for you.
5 Reasons to Hire a vCFO
1. Customized Goal Setting
The first thing a quality vCFO will do is understand and lay out your business’ short and long-term goals. These goals will become the blueprint from which to build your custom strategy.
You get customized experience to your needs and goals. This cuts any expenses on services you don’t require.
2. Report Design and Problem Solving
The vCFO will design and set a standard report to help organize your finances. A vCFO will have seen many issues and situations in different companies, this allows them to organize your finances in the most effective way for you.
Their experience will help you get past your problems even before they happen. You’ll have the benefit of learning from others’ mistakes.
3. Technology Efficient
The vCFO will optimize any of your financial technology. This way they will maintain the financial organization within your business and cut expenses on software you don’t really need.
Virtual CFOs have experience with a wide range of different systems and products since they work remotely. They will be able to provide first-hand advice on different systems, and find one suitable for your needs.
4. Experience and Custom Balance Sheet Builds
Hiring a vCFO gives you a fresh pair of eyes that have seen many businesses before. A quality vCFO will analyze your balance sheet when they come on board. If needed, they will rework it.
By outsourcing your CFO services with us, you’re bringing instant experience. That experience could be vital, especially when it comes to a newly found business.
5. Streamline Financial Processes
Working with a vCFO, you’ll gain from their financial expertise and obtain help with developing and streamlining your financial operations. Since the vCFO will have worked with various clients across different industries, they have insight into operational improvements.
Find the Weslaco Financial Services You Need at Gonzalez & Arrambide
As your business grows, a vCFO can grow with you. Whether you only need the Gonzalez & Arrambide vCFO services one day a week, or part-time as you become more successful, we are here to support your business at every step.
As we live through another year with the COVID-19 pandemic, the deadline to pay your taxes was extended last month by the IRS to May 17th in an effort to take some economic pressure off Americans.
To make your life easier for this tax season’s extension, your local Weslaco CPAs at Gonzalez & Arrambide can ease the process of filing your taxes by the deadline. Today, we will break down what’s expected for this payment extension, and how we can help.
What to Expect from the Tax Extension
This extension goes for all filers, including individuals, businesses, trusts, estates and more. It applies regardless of how much you may owe, and payments will not include extra penalties or interest up until the extended date. This extension is automatic, so taxpayers don’t have to file any more forms to take advantage of it.
The extension could offer great benefits for taxpayers seeking to save for retirement through an IRA. That’s due to the typical April 15 income tax deadline that also happens to be the IRA contribution deadline. With this, the updated May 17 due date would set back the 2019 IRA contribution deadline.
The 2020 standard IRA contribution limit exceeds $6,000, or $7,000 if you are 50 or older. If you’ve already used your contribution for the 2020 tax year, you can put it towards the 2021 tax year, where the limit is also $6,000.
Note that this extension does not apply to 401(k) retirement savings accounts.
The federal government recommends that taxpayers file their taxes as soon as possible, especially those who are awaiting a tax refund. Earlier this year, U.S. Treasury Secretary Steve Mnuchin mentioned that he wanted people to be able to access their refunds as soon as possible. This flow of cash would lift some of the financial weight of the pandemic.
Gonzalez & Arrambide Can Help You This Tax Season
While you might be able to file your taxes by yourself without any assistance, you’ll never be aware of how much money you’re leaving on the table. An accountant will have the knowledge and expertise to make sure you’re not overpaying, and that you’re making accurate claims to all the deductions you deserve.
Handling taxes on top of the stress of the ongoing pandemic can feel overwhelming and difficult to navigate through. The most minor mistake in this financial circumstance can leave an impact on both you and your business. If doing taxes alone feels like too much pressure, our skilled CPAs can show you the process, step by step.
We can sort out the process of filing taxes and simplify the intricate process for a reasonable rate. You don’t have to file your taxes by yourself. Be proactive and consult with Gonzalez & Arrambide!
To learn more about how this tax extension affects you or your business, or for help filing your taxes, speak with our certified public accountants by scheduling a consultation with us today.
Tracking your organization’s sales pipeline metrics is important, but understanding how to optimize them is just as crucial to building more leads and continuing to move prospects through the sales funnel, which results in closing deals.
Monitoring these metrics lets you evaluate your team’s performance, and lends insight into specifics within the organization that need to be adjusted and optimized to ensure a healthy sales pipeline.
Tracking Qualified Leads
Good leads equate to closed deals. Evaluate your inbound and outbound leads to assess pool size and ensure your sales team has enough to prospect and close necessary deals to grow your business.
If your assessment results in a small number of qualified leads, this will require your immediate attention. Solutions may include investing in increased marketing strategies to bring in more leads, instructing your team on ways to maintain an updated contacts list, and using prospecting tools to receive real-time alerts that identify prospects’ role changes.
Services exist that analyze criteria, including location and engagement, that may shorten your list to laser focus on more promising prospects. Analyzing the quality of your leads will ensure time and energy are exerted into more fruitful efforts.
Conversion Rate of MQL to SQL
Are you able to identify how many of your marketing qualified leads become sales qualified leads? Increased drop-offs indicate sales and marketing teams may be working from different playbooks.
This signals an important measure to correct course by strategizing ways for sales and marketing teams to become better aligned. A simple solution may entail cross-department meetings involving both teams. Working in tandem to identify strategies and goals as a single entity can make it easier for teams to quickly become familiar with a shared goal.
Your Organization’s Win Rate
Simply stated, a win rate is a measure of the number of qualified leads that turn into customers. Measuring changes can be done by tracking this number over periods of time, such as from one quarter to another.
If you notice a drop in win rate, redirect focus to improve training, streamline sales processes, and use more reliable sales enablement tools. If in your evaluation you observe closing at a high rate, but total sales not aligning to where you anticipated they could be, consider looking at creating marketing solutions.
If you’re able to determine a marketing problem, rather than a sales problem, it could be time to consider a more tailored marketing approach to help bring in more leads.
Evaluating the Sales Cycle
A sales cycle identifies how long it takes a team to close a deal. Knowing the length of a sales cycle helps find ways to address deals that have become stagnant within your organization’s pipeline.
Focus on these deals that aren’t moving and try to assess what went wrong, and how to find solutions for having them progress quicker down the pipeline. Slow sales cycles may benefit from an automated process to follow up with your lead. A stagnant prospect may have resulted from something as simple as a missed opportunity to reach out.
Gonzalez & Arrambide Offers Sound Financial Insight For a Healthy Financial Outlook
Our team of trusted financial experts offers a range of services to help you move forward with confidence toward business and personal success. Contact us today for a free consultation and to learn more about how our experience and trusted full-service accounting firm can help you with sales performance and improved financial wins.
Making sound financial decisions are crucial to the success of any size company. A financial professional will help you understand and chart strategies to help you manage a profitable company, but for many, there may be confusion regarding the respective services of a Certified Public Accountant (CPA) or a virtual Chief Financial Officer (VCFO).
What your business needs will determine what level of financial professional you need. To clear the air, the virtual CFOs at Gonzalez & Arrambide want to discuss the differences between all of these roles so that you can get the most benefit for your business.
The Differences Between a CPA and a VCFO
A moderate sized company with revenue ranging from $2 million to $20 million may have senior executives rely on the advice of their CPA for matters involving certain business finances. In these instances, the CPA will offer a financial opinion based on experience with taxes and tax law, rather than offering insight related to long-term financial advice for the business.
The responsibilities of a VCFO go beyond tax advice and basic accounting. In a nutshell, a VCFO helps with business planning, forecasting, negotiating, and business budgeting, all of the same kind of responsibilities a company Chief Financial Officer (CFO) would do. A VCFO, on the other hand, saves a company money because they aren’t paying for a full-time employee with benefits.
It’s important to note that you don’t need to be a CPA to be a VCFO, and CPA’s aren’t always well-versed on managing complex corporate finances that a VCFO can.
Let’s elaborate a little bit on these roles now.
More Into the Role of the CPA
In the simplest of terms, the CPA is in the business of tax return preparation; that is their primary responsibility. A CPA may collaborate with a VCFO to provide tax advice that will ultimately help guide the company’s financial decisions based on short term and long-term objectives.
The CPA’s knowledge revolves around taxes and tax laws that lend to the strategies that may be developed by an outsourced CFO. Often, a company may mistakenly look to a CPA for business advice that may be best handled by an individual with a background as a VCFO. A CPA will help a company thrive by performing a range of duties including:
- Organizing and updating accounting records
- Staying abreast of tax laws
- Tax preparation and analyzing reports on transactions
- Conducting regular, detailed audits
- Manage financial documents, expenditures, and investments
Consider a VCFO to Help You Strategize While Saving Money
When evaluating the financial goals and objectives of a company, an outsourced CFO will bring strategies and insight that a CPA may not be equipped to handle. A qualified and experienced VCFO will focus on future cash flow and offer expert advice on operational planning to ensure a company is sustainable. In addition, a company may choose to hire a VCFO in order to:
- Chart a financial strategy
- Forecast growth
- Outline sustainability by addressing expenses and highlighting assets
- Improve profitability
- Control expenses and cash flow
- Establish strong financial relationships
- Assess financial risk
- Finance project management
- Liaison shareholder relationships
Ultimately, a business may decide to hire a CPA, a VCFO, or both based on a range of factors exclusive to your company’s needs. Whether you’re a growing business or an established company, hiring the right team can make all the difference in your financial outlook.
The Virtual CFOs at Gonzalez & Arrambide Offer Trusted and Sound Service
Founded in 1996, Gonzalez & Arrambide, Inc. has become a respected and recognized accounting firm dedicated to helping individuals and businesses of all sizes with their business needs and strategy. Our commitment to services ensures we give you what you need to succeed and grow your revenue streams.
At Gonzalez & Arrambide, we offer our clients Virtual Chief Financial Officer (VCFO) services and have helped them improve financial management without spending the substantial resources needed to hire someone in a full-time role.
Serving the entire Rio Grande Valley Greater Metro and located in Weslaco, our VCFOs are more than qualified to meet your business needs.
As your business thrives and grows, you may find yourself dealing with a broad range of financial issues and topics that you hadn’t fully prepared for. The key to answering these questions means assessing your needs and determining if it makes sense to work with a Virtual Chief Financial Officer (vCFO) to help you chart and properly track your company’s financial resources and goals.
For most business owners, the skills of a CFO lend themselves to developing strategies that aid in the performance and profitability of a business. Unfortunately, when working within budgetary parameters, hiring a full-time CFO may not be financially viable.
But you do have options.
A part-time virtual CFO can be the perfect solution to your problems.
With the ability to handle the duties assigned to a traditional CFO, a vCFO can work remotely and on a part-time basis. A vCFO can act in a dedicated role to monitor the financial well-being of your business and can add incredible value to your company.
What Can a vCFO Do?
A vCFO offers an affordable way to acquire the benefits of a talented finance expert, without the higher expense of a full-time, in-house executive. Working on an hourly basis, and in a remote capacity, a vCFO can perform a wide variety of duties including but not limited to:
- Overseeing the financial initiatives of a business
- Participating in strategic planning activities
- Preparing and managing operating budgets
- Forecasting, managing and reporting on cash flows
- Creating internal controls and assigning duties
- Monitoring and advising on financials
- Managing compliance requirements
The vCFO also serves to identify and oversee the finance and accounting support needed from the roles of controllers, accounting staff, tax accountants and auditors. While the cost of services can vary, a part-time vCFO is still a highly cost-effective solution that also provides a broader financial perspective to your operations.
Benefits of Working with a vCFO
A company not taking advantage of the services of a vCFO is often unaware of the missed opportunities for profit. According to experts, what entrepreneurs may not realize is that money is already being spent on lost profits and misspending.
The dynamics of a business are best explored through the lens of an educated financial professional, and relying on the talent of a vCFO can spell the difference between your company’s survival or failure – especially in today’s tough business climate. If you’re acting as your company’s CEO, you can also expect to serve as a strategic partner for your vCFO to increase profitability and improve cash flow.
As you consider the next step in your company’s financial journey, it’s important to keep in mind that the role of the vCFO is not to act as an agent that will rubber-stamp every and all decisions without first doing their due diligence. Instead, expect them to challenge you on financial decisions and to help you create the kind of transformation that leads to your company’s improvement and success.
Trust the Financial Experts at Gonzalez & Arrambide, Inc.
Since 1996, the financial experts at Gonzalez & Arrambide, Inc., have worked with a range of clients to offer an array of exceptional services to meet your financial needs. Call us today at (956) 447-9009 to explore how we can help you grow your business