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questions to ask a cfo

6 Questions to Ask a CFO in a Meeting

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6 Questions to Ask a CFO in a Meeting

Making the decision to hire a virtual CFO can improve cash flow, allow you to rely on an expert for advice on hiring new staff and increase the value of your business. But if you don’t know the right questions to ask a CFO, you can’t leverage their expertise to help:

  • Improve cash flow
  • Increase business value
  • Make strategic decisions, such as when to hire new employees

During your virtual meeting, you’ll want to ask questions pertinent to your company, including a few of the ones that are relevant below.

6 Questions to Ask a CFO in a Virtual Meeting

Growing a business is a lot of work, and in the first five years, 45% of startups fail. You’ll want to ask your virtual CFO the following:

1. What Can We Do to Improve Our Cash Flow?

Cash flow is responsible for 82% of business failure, so it makes sense to ask what they can do to improve your cash flow. If the executive has experience in your industry, they’ll often offer a solid plan to:

  • Reduce expenses
  • Increase payment speed
  • Integrate better practices in your accounting practice to reduce the risk of cash flow crunches

Your CFO will work to improve cash flow over the long term, allowing you to have the free cash flow necessary to grow operations.

2. Can I Afford to Hire More Staff?

Hiring staff is a major decision and one that can have negative ramifications if done prematurely. Ask your virtual CFO:

  • Can we hire new employees?
  • What is the maximum compensation we can offer new employees?

CFOs will offer guidance on the type of candidate who will fit perfectly into your company and be integral to its growth. 

Your CFO will work with HR to revise or create hiring budgets that keep you financially sound even when hiring.

3. Are We in a Position to Offer More Products or Services?

Maximizing productivity increases revenue, but is your company in a position to offer more products or services? If you lack the talent or resources to expand your offerings, it can put financial strain on your company and lead to higher debt.

CFOs will help you know if your company is in a position to expand its products and services and the extent of the expansion. Your CFO will analyze your financial data and books to guide your company to growth.

4. Which Key Metrics are Driving Our Profitability?

As a business owner, you likely have some key metrics that you’re already tracking. But are these metrics actually driving profitability? Are you focusing on the right things?

A virtual CFO will look at your business from a different angle – an outside perspective. Their insight and unbiased view of your operations can help ensure you’re tracking the right metrics to reach your profitability goals.

5. Are There Any Practices or Procedures We Can Implement to Improve Functions in Our Business?

An outsourced CFO can do more than just review your financial statements – they can also help you find ways to improve operations and functions to boost efficiency and productivity.

During your monthly meetings, make sure that you set aside time to look at your operational systems and identify areas that could be improved. Are there things you can do to increase profitability? What can be done to streamline tasks?

Improving processes and procedures can also increase the value of your business over time. 

6. What Can We Do to Increase the Value of Our Business?

A virtual CFO can work alongside your team to not only help improve operations but also increase the value of your business. 

CFOs can work strategically to help your company:

  • Find opportunities for predictable, recurring revenue, such as long-term contracts or implementing a subscription model.
  • Sell, spin off or shut down underperforming operations that may be hindering your business.
  • Reduce business risk by implementing proper financial controls and other risk-mitigating strategies.
  • Conduct a full audit to improve perceived value and optimize your tax structure to maximize after-tax proceeds.

These are just a few of the many ways a virtual CFO can help you improve the value of your business. Once they understand your business, they can develop a tailored strategy to increase its long-term value.

There are many questions to ask a CFO during your virtual meetings, but these are some of the most important and impactful. You may have unique concerns or questions that you want to ask about improving your business.

To learn more about our virtual CFO services or how we can help you with your accounting needs, schedule a consultation now!

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