Your Shopify or FBA business may be growing faster than expected. When products begin to fly off the shelves and sales continue to soar; Amazon FBA and Shopify owners often feel overwhelmed and confused.
The problem lies in managing cash flow and predicting future costs. Most business owners start a venture the right way. However, sometimes things get a bit complicated when it comes to numbers. As you are too busy to plan and execute business operations; you fail to make accurate projections for how your business will be a year from now.
A CFO or (Chief Financial Officer) is a qualified professional who helps to increase cash flow, gain profits and predict finances. Here are some signs that signal your Shopify or Amazon FBA business requires a CFO:
It makes sense to hire a professional to manage your cash flow and all financial matters when your business revenue is growing steadily. If you are meeting your annual revenue goal each year then your financial management issues may already be complicated enough to benefit from a CFO.
Even if your revenue isn’t high enough to support the expenses of a CFO, it is profitable to hire a CFO to map out the trajectory of your burgeoning business. Don’t wait to get a CFO on board if your business is escalating at a stable rate.
For Managing Cash Flow
Cash is fuel to a business. As a Shopify or FBA business gets matured with time; cash flow becomes complicated and the need to make timely decisions arises. That’s when a CFO comes in the picture.
You should have someone to manage your cash flow to know the direction in which your business is heading. Numerous online businesses hire a CFO to just manage their cash flow on a part-time basis. A little help can go a long way.
A single-product business can be managed fairly easily. However, when it comes to dealing with multiple products; investments and revenue can be tricky.
All online businesses that deal with a multitude of products and services in different locations must need professional financial services to know where most of their revenue is coming from exactly. Some Amazon FBA and Shopify owners are good at doing the math. However, a CFO can do more as he can set financial goals for your business to expand in future.
Need for Forecasting
While most Shopify and Amazon FBA business owners are tempted to take all financial matters in their own hands; they end up ruining their chances of sustaining a lucrative business. That’s because they may be good at managing cash flow, but they may not be good at setting company goals, which will adversely affect the overall revenue stream. A CFO doesn’t have to cost a fortune. Many financial experts are happy to offer help at hourly rates for assisting the most cash-strapped companies with their financial forecasting methods.
A large percent of all entrepreneurs start a business with skills and expertise. Finances are rarely one of them. A full-time or part-time CFO oversees financial and accounting practices of an Amazon FBA and Shopify business. Moreover, he prepares timely and accurate financial statements and looks into the budgeting of your business.