59. When do you outsource financial oversight of your business?
October 25, 2019
This episode is brought to you by my bookkeeping strategy sessions. When it comes to your bookkeeping, you’re probably in one of three areas. Doing it yourself, outsourcing some or all of your bookkeeping to a professional or understanding what the reports mean and making better business decisions from that information. Each of these stages comes with different struggles and questions. I can help with all three. Bring your questions, and I’ll bring some solutions. To book one of these sessions, email me at firstname.lastname@example.org. Now, on with the show.
Welcome back to the podcast!
This is the last episode in our outsourcing series! I created the episodes in this series for those of you who are moving beyond the DIY phase and are ready to outsource these tasks to someone else. In episode 52 we talked about the difference between a bookkeeper, accountant, cpa and cfo. In episode 53 and 54, we talked about what you expect from your bookkeeper and what they expect from you. Episode 55 is a bonus episode of a book review. Episode 56 is all about where to find a bookkeeper. Episode 57 is the difference between a good, better and best bookkeeper and 58 is all about signs of a sloppy bookkeeper.
A few of these episode have accompanying PDF guides. You can find those in our private facebook group. Join by going to lydiagmiller.com/join and it will take you to where you can answer a few questions, enter in your email and then I will approve you to be in the group.
So, let’s talk about when do you outsource financial oversight.
In episode 52 when we talked about the CFO’s role in your business, I listed off 10 things that they have responsibility for, but the main thing was financial oversight.
In large companies, the CFO is responsible for this, but so is the CEO. No matter how big the company gets, the CEO is still ultimately responsible for financial oversight.
That means you. You are always going to be responsible for the financial oversight in your business. If you suddenly have lots of debt, that’s on you. If you are behind on your bills, that’s on you. If you haven’t saved enough to pay taxes, that’s on you. All of these major things are still going to be part of your responsibility as a CEO whether or not you outsource your bookkeeping and even if you hire a CFO. Now, hiring a CFO will help you because you have a second set of eyes on your books and oversight and they’re bringing you the good and bad information of what’s going on week to week. But, even if you don’t have that role, you still need to embrace the money side of your business and not be afraid of it.
So, to be really clear and answer the question of ‘when do you outsource financial oversight?’ the answer is never. You never outsource knowing what’s going on. You can hire help. You can hire a whole team for this, but you still need to know what’s going on.
The businesses that I’ve seen who try to outsource this completely are not set up to win in the long run, or the CEO gets frustrated when he wants to make a big purchase or give himself a raise because he’s been working hard the money isn’t there. Or if he thinks he has a business much larger than he actually does only because he’s been spending like a company that has more money than his does.
The companies, even small ones, that I see as growing are ones where the CEO knows the numbers. This isn’t always natural for them, but they don’t have a panic freak out drama queen moment every time someone hands them a financial report. They ask questions. Even if they’ve asked it 10 times, if they aren’t clear they ask it again. They keep an eye on their savings account. They make sure their taxes are being paid. They want to know if they’re making a profit and they put that as a priority. They don’t spend money just because, they stick to a budget that they’ve created.
This might not be their favorite task, but they make time for it because it’s important. After all a business with no money is a burden and not a blessing.
So, business owner. Have you outsourced financial oversight? Maybe to someone else, maybe to God, maybe to your spouse, but if you’re the CEO, it’s still you responsibility.
If you need help with this, you may need to hire a CFO to get you on track. You may need to get some extra eyes on your business and meet with them to go over what’s going on.
In the spring, I’ll be offering CFO services. My first baby is due in December, so my fall and winter is preoccupied with baby, but once I’m back from my maternity leave, I’ll be offering these services to CEO’s like you. We’ll go over all financial aspects of your business, I promise to make it simple and clear. But, if you’ve outsourced this to future you, well now is the time.
You can email me at Lydia@dacbalance.com if you’re interested in this service and I will email you in the spring when these are available.
Whether or not you decide to outsource this, you need to keep this role in mind and actively be doing the things that you need to be doing.
I’ll have a PDF guide for this episode in the private Facebook group of the areas that you need to be looking over as the CFO of your business. You can join by going to lydiagmiller.com/join, answer a few questions, enter your email and I’ll let you in.
I’d be honored to work with you. To get started, email me at email@example.com with the problem you’re having and we can discuss the best way to get to a solution.
If you are ready to use your numbers to help your business, please subscribe so you will be notified when the episode drops.
I would love to connect with you. You can find me on Instagram @lydia.miller.mba and always by email firstname.lastname@example.org.
So until next time, go, make it happen.