Benefits of a Part-Time CFO

Posted on July 23rd, 2018

Finances are the lifeblood of a business. When that business is growing, its cash flow becomes more intricate and may require high-level oversight. Full-time chief financial officers are expensive, but their expertise is necessary. With part-time CFO services from a dedicated accounting firm, businesses gain the assistance they need without the high salary required by this executive position.

Part-time CFOs deliver the accounting processes and data-driven insight owners require to maximize profits. Their mission is to safeguard the financial standing of the firm and secure its long-term success. Throughout the many seasons a business undergoes, these key personnel assist in the proper management of fiscal resources.

Financial Expertise at a Fraction of the Cost

Typically, the full-time CFO position requires a hefty salary, benefits, and bonuses. Small businesses, no matter how fast they grow, aren’t always equipped to handle such substantial commitments. Regardless, a CFO provides financial experience and knowledge that far exceeds that of a standard accountant. Part-time CFOs make obtaining this essential individual much more cost-effective.

Precise Accounting

Balancing the books, keeping them organized, and minimizing errors is a full-time job in its own right. Besides this, a CFO helps owners keep the business on track for sales goals. With these needs taken care of, owners can focus their time and energy on the matters most important to them.

Operational Support

CFOs are also involved in the financial integrity of the business. They can manage who has access to records, accounts, and resources while keeping watch for fraudulent activity. They protect the bottom line and help develop internal controls. Furthermore, they can set up benefits plans and recommend strategies to retain top talent.

Wisdom and Advice

The most important aspect of a CFO is their independent perspective. With the numbers in mind, they can sift through data and reports to determine the best ways to stay profitable. From tax strategies and pricing models to investments and asset allocation, CFOs are a business owner’s guide.

For CFO Services, Contact Schulze, Oswald, Miller & Edwards PC

Our firm wants to team up with businesses from Alpena and Rose City, as well as virtually across the entire US, to bring them success. With our part-time CFO services, we support you through challenging times and help you capitalize on financial opportunities. Call us for a consultation, today!

Reviews, Audits, and Compilations

Posted on July 7th, 2018

For a business owner wanting to hire an accounting professional for help with financial statement services, it can be difficult to understand which level of assessment is beneficial for your specific needs.

It’s necessary to produce timely and accurate financial statements so third parties can gauge how well the business is performing and what risk factors they may want to look out for. Whether you need to prove your company’s solvency to investors, lenders, or potential partners, there are three different levels of assurance services that can provide the information needed.

Many firms offer reviews, compilations, and audits to help businesses obtain the level of assurance necessary. Below is some detailed information about each and their benefits to your business.

The Importance of Financial Reporting

Compilations, reviews, and audits are conducted on a business when developing strategic partnerships for growth. Not all queries into your finances need to be handled by a comprehensive audit.

A compilation offers a less assurance than an official audit, whereby your accountant will gain a general understanding of your bookkeeping, but without expressing assurance of the accuracy of the numbers presented. Many accounting professionals equate this step to a doctor offering an assessment based on a brief description of the symptoms rather than a full examination.

Reviews provide a greater scope to your business finances than a compilation, however, not quite the level of an audit. Accountants will perform some level of analysis, but not as comprehensive. Many firms offer this assurance as a cost-effective and efficient alternative to an audit.

An audit involves the same steps as a review, but the firm will apply procedures that allow them to offer their professional opinion as to whether the statements are fair and in conformity with generally accepted accounting principles.

Conducting Assurance Services

With any of these three services, our accounting team will start the process by learning as much as we can about your organization, including details about your industry, your company’s policies and procedures, as well as the day-to-day operations. With this information, we conduct a battery of analytical procedures, such as ratio analysis. With this, we compare your operating statistics to prior periods or the industry average. This detailed analysis grants us a better understanding of how your business operates, thus allowing us to provide assurance about the reasonableness of your financial condition.

For those clients wanting a comprehensive audit of their books, we intensify our inquiry, poring over all aspects of your finances and operation. We conduct internal control and risk assessments to provide you with the assurance you need. As an additional benefit to any of these services, we may be able to make you aware of certain areas of inefficiency or weakness that could affect your venture’s bottom line and suggest methods for improvement.

Contact Our Team in Alpena Today

Schulze, Oswald, Miller, & Edwards PC offers our clients these three levels of assurance so they can maintain a successful and prosperous business. If you would like to learn more about compilations, reviews, or audits, call our team today to schedule a consultation. We proudly serve clients living or working in Alpena, Gaylord, West Branch, Rose City, and the neighboring communities.

Purchasing Versus Leasing in Your Industry

Posted on June 23rd, 2018

Purchasing Versus Leasing in Your Industry

Expensive equipment, vehicles, and technology can be costly to purchase and maintain. The question of whether you should buy or lease these items weighs on every business owner’s mind. The answer is derived on a case-by-case basis, where one option may be more beneficial than another in a specific situation.

At Schulze, Oswald, Miller, & Edwards PC, we offer advice on leasing and purchasing to a variety of industries, including veterinarian clinics, trucking companies, local government agencies, and blue-collar industries. The truth is, however, businesses in any sector run into the purchasing versus leasing situation.

Utilize Cash Flow Analysis

The first step is to analyze the long-term costs of purchasing equipment or leasing it. When an item is more expensive, owners will have to acquire a larger loan, which will incur interest payments. The annual payments plus the interest may not work within the budget. In this case, leasing may be the next best option, but owners won’t know if this option is viable unless they crunch the numbers.

Interest & Maintenance

Loans and interest rates often push purchases out of reach. On the other hand, leasing often requires the temporary owner to perform regular upkeep and pay for maintenance out of their pocket, which can be downsides to either of these payment options. Owners should keep in mind the other factors that come in to play: the amount of money put down on a purchase/lease, the type of equipment procured and expected maintenance required, and the resale value of a purchased item. With these variables accounted for, business owners can accurately predict costs.

Tax Saving Opportunities

The IRS and many state revenue agencies offer rebates for expensive purchases and leases. These tax deductions depend on the reason the purchase/lease is attained, and how much businesses expect to lose in depreciation. For example, doctors who purchase new medical technology can deduct a percentage of the equipment’s lost value over time. The same goes for a variety of purchases that small businesses make.

Need Help Deciding? Contact Schulze, Oswald, Miller & Edwards PC

Our firm’s accountants can perform the cost analysis for businesses who aren’t sure whether leasing or purchasing is the best option for them. We simplify this process and offer our advice with primary consideration to our clients’ goals. Small businesses from Alpena, Gaylord, Rose City, West Branch, Rogers City, and virtually across the United States are welcome to contact us for answers to their purchasing and leasing questions.

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