3 Ways a Fractional CFO Helps Your Hospitality Business Grow
May 16, 2021at11:00 PM
Hiring a fractional CFO is among the most effective ways to introduce high-performing financial strategy into your business. Unlike bringing someone on board full-time, this option offers the cost-effectiveness that’s likely a priority for you at the moment.
After more than 20 years serving businesses in the NY metro and global hospitality industry, at Vilardi & Company we recognize that this sector provides unique and vast opportunities for fractional CFOs to encourage and guide rapid, sustainable growth.
These three are some of the most critical ways that fractional CFOs within the hospitality industry use to help businesses expand and increase profitability.
1. Easily accessible industry experience at affordable rates
One issue startups run into, and one that may be familiar to you, is having a business idea and the resources to bring it to partial fruition, but not necessarily the industry experience.
Inevitably, this leads to several constrictive bottlenecks across the company, essentially placing a hard limit on growth.
Solving this problem can, in some cases, be the most significant and enduring contribution a fractional CFO makes.
For example, Vilardi & Company has worked with businesses in the hospitality industry since 2000. In an industry that’s known for continually shifting trends, wide experience enables us to remain innovative in how we serve clients.
This is a crucial consideration for the notoriously competitive hospitality industry, particularly the recreation and food and beverages segments.
2. Streamlined bookkeeping and effective tax strategies
Of course, a fractional CFO’s value is largely rooted in how they help your business with its financials.
When the two — specific industry experience and an expert financial understanding are combined — are combined, hospitality businesses are in a position to devise and follow holistic and fundamentally sound growth strategies.
This service is of special relevance for growth-stage hospitality startups, which are uniquely at risk of having their progress derailed by poor sorting and analysis of critical financial data.
A fractional CFO’s role encompasses managing your books and keeping them current and accurate.
In today’s business landscape, it’s strongly recommendable to work with a firm that has a modern and evolving approach. Just as integrating the latest business operations software has become necessary for efficiency, so has leveraging the most advanced accounting systems.
An early start with meticulous bookkeeping ensures the ready availability of critical business insights, especially when supported by knowledgeable (emphasis) use of QuickBooks, Xero, or a similar platform.
In addition, the benefits of working with a fractional CFO are notable when it comes to tax. It’s common for small businesses to unwittingly overpay. And, especially in hospitality, deductible items abound but are rarely leveraged when claiming.
With the guidance we discuss here, businesses can save previously unimaginable amounts.
The business models of most hospitality startups, probably yours too, make sustained scaling a key aspect of achieving a long-term strong financial standing. But doing so is fraught with its own risks, notably thinning margins that undo some of the gains your business might see.
And greater scale can also be offset by the higher operating costs associated with serving more customers.
A fractional CFO assists in avoiding these risks by cutting waste and unnecessary expenditure early in their working relationship with you. More than just poring over your records, this requires a line-by-line analysis of your business’ financial data.
As we find, some of the major balance sheet culprits that needlessly lose businesses money are far from immediately obvious.
But with a fractional CFO, these insights are readily available. As a result, clear understanding of the business’ finances buttresses long-term growth strategies, making them more robust but, at the same time, more nimble.
Strengthen your business’ resilience and fuel its growth with a Vilardi & Company fractional CFO
As you are no doubt aware, sound and expertise-driven financial practices can be a difference maker for your business. They can create the structure required to surge towards your goals. And they widen innovative potential, empowering real performance that strengthens your place in the market.
With over 20 years’ experience, our leading firm can provide a fractional CFO who enables these capabilities for your business. Contact us today to discuss more.