What Do CFO Services Do for Businesses?

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Financial management is one of the main difficulties preventing your company from growing as quickly as you would like. That is, you just can’t pull the statistics together to tell you where your greatest dangers and possibilities lie in the future, much along the path to financial health and prosperity.

Your accounting staff will do an excellent job of staying on top of tax and compliance concerns, but they need the knowledge and expertise needed to develop the data and reports you need to take your company to greater heights and beyond.

You may be considering if it’s time to recruit a professional with industry experience who can start supplying you and your board of directors with the kind of vital data that you need. However, a skilled CFO is not cheap, and for a small and developing firm, this is a significant financial commitment.

It’s essential to know what does CFO services do for your businesses and if it’s financially worth it for your company to take on the extra cost. Let’s take a deep dive into the topic for more information.

What is a CFO?

An outsourced CFO is a finance executive that works outside of your company and provides top-notch financial, business, accounting, and operational advice. A full-time, part-time, or interim outsourced CFO might be used for the duration of a project.

Who Benefits From a CFO?

  • Your business isn’t performing well and you need an outsider’s perspective on what the next steps should be
  • Entrepreneurs without enough knowledge, time, or know-how to get the job done themselves
  • You run a success small business but don’t understand the financial side of things
  • You need to give investors an update but are unsure on how to do it
  • Your company needs to replace or enhance the bookkeeper’s roll to someone with additional financial information

Types of CFO Services

CFO services are available in several types. It’s crucial to pick one that’s knowledgeable and appropriate for your company. You can look into the following types of CFO services below.

  • Virtual CFOs: This option provides a longer-term answer to your managerial accounting needs, in which the firm supervises your financial employees but is not present on-site, in person, or involved in daily tasks.
  • Consultants: Most often seasoned CFOs who will work with your organization for a limited time to build and teach about things like reporting and procedures. They can even act as a temporary fill for a specific project.
  • taffing Firms: This option consists of larger firms that will assign you to anybody they have available. When choosing this type of CFO, realize the individual may not be fit for your industry.
  • Single Source CFOs: This is an individual who offers CFO services to a variety of clientele. If you have an urgent project, you’ll want to be certain this person is acquainted with your business and has the resources to fulfil your needs.

What Do CFO Services Do For Businesses?

They Focus on the Future

A CFO service shall prepare a budget and financial forecasts to provide you and your company with the most up-to-date financial information in order to make business choices about your future of the company, and also the skills to hold your employees responsible for meeting your objectives.

These predictions can also incorporate possible situations, allowing you to be a genuinely future-focused CEO and analyze the possible effect of critical decisions quantitatively prior to actually making that next expenditure.

They Create Thorough Reports

A CFO service can produce reports tailored to your business and current needs on a monthly or even weekly basis. The CFO service helps gain a thorough understanding of your company and industry, as well as assist in the construction of reports that are simple to read for you and your board of directors, allowing you to fully comprehend where your business is currently and where it is going.

They Keep Everyone On Track

A CFO service may supervise your existing bookkeeping and accountant team to make sure that all procedures are subject to a number of checks and balances in order to increase security and show accurate financials.

In order to run your business as efficiently as possible, the CFO service will verify that you are using the correct and most up-to-date financial software.

While a CFO service won’t actively supervise your IT department, it will collaborate with it to ensure that necessary safeguards are in place and that your staff’s equipment and software needs are met. The CFO service additionally could ensure that your company follows all income needs.

Bottom Line

Given these responsibilities, several financial analysts claim that a CFO’s most important responsibility is to detect and minimize threats. A CFO must determine where a group is lacking, why profits are squeezing, and what possible dangers could undermine the company’s performance through constant financial data analysis.

Is It Worth It?

Hiring a CFO full-time used to be a costly matter that only large corporations could manage. Although the experience of a CFO would benefit small businesses, the expense was just not justified. Thanks to the increase in technology and outsourcing, CFO’s are more affordable now than ever before.

There’s a better approach to hiring a CFO in recent years compared to when the job was first created. You can outsource a CFO on a part-time basis using a CFO online marketplace to find the ideal person for your business’ needs. It’s important to check with your staff to determine whether it’s the ideal moment to hire a CFO and create a strategy that’s tailored to your individual needs.

They’ll become a valuable asset who can turn your financial data into useful information.
The appropriate CFO can assist you in growing your company more quickly and intelligently. If your company is financially able, it may be in your best interest to interview CFO’s to see how they can help your brand meet your goals and fix potential financial issues you may be dealing with now.

We hope this article on what do CFO services do for your businesses was illuminating and answered many of your questions. At MY OC Bookkeeper, we pride ourselves on providing the best outsourced CFO services in Southern California. We also offer bookkeeping services, accounting services, and business setup services.

You can reach us by phone at 949-345-0639, email us at admin@myocbookkeeper.com, or contact us here.

How To Start a Business – 7 Steps You Don’t Want to Miss

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The funny thing about business is that many of the people who start them don’t really know what they’re doing at first. It’s not as though entrepreneurs spring neatly from the ranks of business college graduates–far from it. So many amazing companies start from the spark of an idea from an everyday person. A teacher. A chef. A janitor.

Some people simply see a need and have the imagination to fill that need creatively. When the idea becomes a good or service, a business model is required to bring it to the consumer. But how to do this? If you’re someone whose spark has become a product and you want to expand, we’ve created a list of steps to follow when starting a business.

Step 1: Conduct Market Research

The first thing to do is find out if the general public finds your product as brilliant as you do. Market research helps you to gather information about what consumers are looking for and if there are similar businesses in your area.

You can do this by gathering information directly, or using secondary info (information that has already been gathered). You need to know your audience from the very beginning so that you can gather relevant demographics. You may choose to use any or all of the following to gather information:

  • Interviews
  • Surveys or questionnaires
  • Focus groups

Step 2: Create a Business Plan

A business plan is the cornerstone of your company. It’s essentially the strategy for building your idea into a successful venture. It needs to be clear, concise, and demonstrate to your audience that your business is one worth investing in.

Take a look at the competition in your marketplace. Identify some strengths and opportunities, and decide how your own business will do things differently. What will you be marketing, and how will you market it? What is your target audience? Answer these questions before moving forward.

Create a conservative sales projection, so that you’ll have a cash reserve. Don’t go too hard at first, as you need to create brand awareness and convince existing consumers of your competitors that your product is better. This takes time, so it’s best not to overreach.

Step 3: Find the Funding

If you don’t have the capital on hand to start a business on your own (and congrats if you do!), you’ll have to find the funding. As part of your business plan, you should have decided how much money you’ll need to start your venture. Now it’s time to figure out how to get it.

You can self-fund with your own money (but be careful with this…while you have total control, you also have all of the risk). This can be done by dipping into savings, or by getting a small business loan.

You may also reach out to investors. If you are doing this, make sure that you have a really strong business plan to share. Also realize that you will very likely that any investor will want a spot on your board of directors so you’ll have to be ready to relinquish some control.

Finally, you could try crowdfunding. This is low risk as you retain control as owner, and don’t typically owe anything to the funders if you aren’t able to follow through (check the fine print of your platform to be sure). In return for their contributions, funders are offered some sort of gift. This could be a copy of the product itself or perks like a name credit or a special item not available to the typical buyer.

Step 4: Decide on a Location

Nowadays, the big choice here is whether you’ll have a brick-and-mortar shop, or run your business completely online. There are pros and cons to each, so take some thought to decide which best suits your product or service.

The choices you make here can affect your revenue, as well as taxes and legal requirements.

Step 5: Find a Memorable (and Original) Name

This may seem like a simple step, but the truth of the matter is it may take a little more time than you’d think. First, you want it to really capture your vibe and brand. Then you have to make sure that the name you want is not already being used anywhere else. A really catchy name can be the start of a business empire.

Step 6: The Legal Stuff

You want to register your business to protect your new company name. In most cases for small businesses this is a simple process where you simply register the name with state and local governments.

Next, take care of the tax stuff. You’ll need to get an employer identification number (EIN) so that you can open a business bank account and pay your taxes. Think of the EIN as a social security number for your business. Depending on your state, you may also have to apply for a tax ID.

Finally, let’s make sure that your company is legally compliant by applying for any and all required licenses and permits. Which ones you’ll need depend upon various factors such as state, location, industry, etc.

Step 7: Open a Business Bank Account

Now it’s time to open a business bank account. These accounts are helpful to small business owners, as they are able to better help you with taxes, legal things, and the day-to-day of running a company, not too mention they make your accounting and bookkeeping much easier. Many also offer business credit lines as a perk of signing up.

The Final Word

Creating a business is something that requires a lot of focus and drive, but almost anybody can do it if they have a product or service to sell. All it takes is careful consideration of all the steps outlined here. Just be sure that you move slowly and carefully, and that you don’t overreach. Remember that there are competitors out there and that you have to take the time to carve out your own niche.

To take a deeper diver into the regulatory and administrative tasks that need to be undertaken when starting a new business, we have a great blog post that provides a detailed step by step guide on what you need to do. Or, if you prefer videos take a look at our YouTube piece on the same topic, or just watch the content below. (The first video is the full guide and the second is an abridged guide.)

That’s it for now. We hope that our article on how to start a business was helpful for you. My OC Bookkeeper has extensive experience in helping individuals set up businesses from scratch and are always ready to help you. Make sure to contact us here for more information.

Hiring Employees in California – Our Guide

How do you hire employees in CA?

What Does a Company Have to Do When It’s Ready to Hire Employees in CA?

So, you are wondering what a new company has to do when it is ready to begin hiring employees in California. First of all, if your company has grown enough that you are planning on hiring employees, congratulations, you are clearly doing something right. Bringing on staff is an exciting time for a business, but, like everything else it involves some important steps that you don’t want to miss.

My OC Bookkeeper, the best accounting and bookkeeping firm in Orange County, has put together this handy guide to walk you through some of the basic things that you need to know when hiring employees in California. (Please remember, we are not lawyers, so this is not legal advice. Rather, this is a quick guide to make your life easier and save you some time! Believe us, wandering through a million websites trying to find info on state regulations can be quite frustrating.)

First things first, if you employ one or more people and you pay over $100 in wages during a given quarter you have to register as an employer with the California Employment Development Department (EDD). This is fairly easy and can be done online via the e-Services for Business portal. There you will get your employer payroll tax account number. (This is important so file it away somewhere safe.) The e-Services for Business portal is worth remembering. A lot of the information you will have to file with the California government can be addressed there.

Another useful site is the EDD’s Employer Portal. This is a great place to go to search for information and learn more about California’s various regulatory requirements.

Requirements for hiring employees in CA

As it turns out, there are a number of other things that you will need to do once you hire employees. Other ongoing responsibilities include:

  • Reporting wages paid and State Personal Income Tax (PIT) withheld from wages.
  • Paying Unemployment Insurance (UI) and Employment Training Tax (ETT) on employee wages, as well as withholding and remitting State Disability Insurance (SDI) and Personal Income Tax (PIT). (Refer to Rates and Witholding Schedules.)
  • Reporting all new employees to the New Employee Registry within 20 days of their start-to-work date.
  • If you use the services of independent contractors, you may also have to report them. Refer to Independent Contractor Reporting.
  • Posting notices in your workplace and providing employees with benefit information. Refer to Required Notices and Pamphlets.

If you can remember all of this you will be well on your way, but be sure to read through the EDD’s website, in particular the aforementioned Employer Portal, to make sure that your business is entirely compliant given its unique circumstance and the ever changing regulatory landscape.

So there you have it, My OC Bookkeeper’s quick guide to hiring employees in California. Have follow up questions or need help from the best accounting, bookkeeping, and business consulting service in Orange County? Reach out to us today!

Interested in learning more about setting up a business in CA? Check out our blog post on how to register a new business in CA. Or, better yet, watch either our Comprehensive Guide to Starting a Business in CA or our Quick Guide to Starting a Business in CA. If you like them, please don’t hesitate to ‘like’ and ‘subscribe’ – you will get good karma. (We’ve pasted them below as well should you prefer to watch them here.)

Best of luck with your business!


How Do You Start A Business in CA? Our Video Guide Will Teach You!

Video Guide on Registering a Business in CA

Time to Learn How to Register a Business in CA!

Have you been wondering how to start a business in CA but don’t know where to start? The process can be a bit daunting, but it doesn’t have to be. Watch our quick video tutorial to learn everything you need to setup a business in California. Believe me, it will make your life a lot easier.

Or, if you are looking for a more extensive introduction into how you can start a business in CA, enjoy our more comprehensive video further down the page. We call that one: Starting a Business in CA – Our Step by Step Guide. It goes into a bit more detail, particularly regarding the advantages and disadvantages of the various kinds of businesses you can form.

Then again, some of us our readers. If you like to learn by reading, then check out our extremely thorough and informative blog post explaining all the key steps needed to register a business in sunny CA. Don’t worry if you aren’t in California, the basic ideas will put you on the right track wherever you are.

CA Business Registration

So good luck with the business. If you’re here, you’re already on the road to success. And if you need any help, feel free to reach out to us. At My OC Bookkeeper we help businesses all over California with everything from business registration to day to day accounting to developing complex financial models. Whatever your needs may be, we are here to help!

Oh yes, one last thing. If you like our videos please don’t hesitate to let the world know and ‘like’ them. It will give you good karma and help spread the word about My OC Bookkeeper. Really want some good karma? And some great videos? Subscribe to our awesome Youtube Channel that will teach all kinds of great things about accounting, business, and bookkeeping.

Starting a Business in California – Our Quick Guide

Starting a Business in California – Our Step by Step Guide

Why Do Companies Hire Outside Bookkeepers? For About a Million Reasons. Watch the Video to Learn More!

That’s the end of today’s lesson. Check back soon to learn more. And best of luck in your business endeavors. As far as we’re concerned the more people who start a business in CA the better! By the by, are you looking for a bookkeeper or accountant? My OC Bookkeeper provides the best bookkeeping services in Orange County.

Setting Up a Business in Orange County, CA

Opening a Business in California

The My OC Bookkeeper Guide to Setting Up a Business in Orange County, CA

Ready to start a business in Orange County, CA? There are a lot of things to think about, but don’t worry we are here to help. My OC Bookkeeper (Orange County’s best bookkeeping and accounting firm) has put together this guide to help you on your way. In addition to some great info, we’ve included links to websites that will be valuable throughout the process. So, without further ado, My OC Bookkeeper’s guide to setting up a business in Orange County, CA. (By the way, if you aren’t located in Orange County don’t worry, these tips will be helpful wherever you are.)

Step 1: What Kind of Business Should I Set Up?

There are seven basic types of businesses you can set up. The types are: sole proprietorship, corporation, limited liability company (LLC), limited partnership (LP), general partnership (GP), and limited liability partnership (LLP). We will describe each one in turn.

Sole Proprietorship – a sole proprietorship, or sole prop, is generally considered the easiest and cheapest form of business to form. It enables an individual (rather than an ownership group) to setup and own a business. Importantly, with a sole prop the owner and the business are considered a single entity, so the owner is responsible for all of the obligations and liabilities of the business. They have complete control, and individually take the profits and pay the taxes. If the business is to have a name different than their own, i.e. Steve Baker, then a fictitious business name, or dba, must be filed with the county where the business operates. There are no specific documents that must be filled with the CA Secretary of State, although depending on the type of business there may be paperwork and registrations required.

Corporation – a corporation is a usually a legal entity that is entirely distinct from its ownership. The structure prevents liability from passing from the business to the owners; however taxes are paid by both the company itself and the shareholders. Unlike most business entities, corporations can sell stocks and bonds to raise capital, and the company can survive long after the initial owners have passed away.

To set one up you will need to file Articles of Corporation with the California Secretary of State. A corporation is one of the more complex business entities, and it is best to speak to a lawyer before creating one.

Limited Liability Company (LLC) – like a corporation, a limited liability company provides ownership protection from liabilities associated with the business. (For example, if someone sues the business, the owner’s assets are not at risk, only the business assets are.) An LLC is generally cheaper and easier to set up than a corporation, but more expensive than a sole proprietorship. To do so requires filing Articles of Organization (Form LLC-1) with the State of CA. You must also complete an operating agreement describing the affairs and activities of the business and keep it at your office. (You don’t have to file it with the state.) It costs $800 a year to maintain an LLC in California.

Limited Partnership (LP) – a limited partnership must have at least one general partner and one limited partner. The general partner acts as the controlling partner and is personally liable for all of the business’s liabilities. The limited partner has a certain amount of protection from the liabilities of the company depending on their level of participation. (Definitely talk to a lawyer before setting up an LP.) In CA, you will need to file a Certificate of Limited Partnership (Form LP-1) with the Secretary of State to set up an LP.

General Partnership (GP) – to form a GP in CA you must have two or more people who own the business. Generally speaking, all of the partners are jointly liable for the debts of the business, although the details in this regard may change depending on the nature of a given claim and the desires of the claimant. Profits are taxed as personal income of the owners. (Like with an LP and Corporation, it is best talking to a lawyer before setting up a GP.) To register a GP in CA, you will need to file a Statement of Partnership Authority (Form GP-1) with the CA Secretary of State; however some GPs don’t register at the state level at all.

Limited Liability Partnership (LLP) – LLPs are partnerships that work in specific industries such as public accounting, architecture, engineering, law, and land surveying, or that provide services to a CA registered LLP that practices public accountancy or law, or to a foreign LLP. LLPs are required by law to maintain certain minimum levels of insurance. To register an LLP in CA you must file an Application to File a Limited Liability Partnership (Form LLP-1) with the CA Secretary of State.

Step 2: Is The Name I Want for My Business Available?

A quick preliminary (but not final) search for a business name’s availability in CA can be done through this link. You can also do a trademark search with US Patent and Trademark Office and do a simple Google search to see if anything comes up with the name you want. Next, follow this link to read the name availability section of the CA Secretary of State website which has lots of relevant information.

A couple of other things to keep in mind (more detail is available on the Secretary of State website noted above):

  • A name for a corporation can be used if it isn’t the same as or too similar to an existing name recorded with the California Secretary of State or if the name is not misleading to the public.
  • A name for a limited liability company can be used if it is unique on the records of the California Secretary of State or if the name is not misleading to the public.
  • A name for a limited partnership may be adopted if it is unique on the records of the California Secretary of State.

Setting Up a Business in Orange County, CA

Step 3: Obtain a Federal Employer Identification Number (FEIN or EIN)

An EIN (federal employer identification number) is used by the federal government when taxing businesses and is basically the business version of a social security number. Corporations, limited liabilities companies, and partnerships need EINs. Sole proprietorships may not need one, depending on the type of business they are engaging in. To find out if you need EIN, start with the IRS webpage entitled: Do I Need an EIN?

Even if you don’t technically need one you may want to get one anyway. Why? Using an EIN instead of your social security may protect you from identity theft. If you work as an independent contractor you may have to provide either your social security number or EIN to your clients, and the more people that know your social security number the greater the risk of fraud. Having an EIN also indicates to clients that you are an independent businessperson rather than an employee, which they may prefer, and also may be required to set up a business bank account. (Which you likely will want to do.)

Getting an EIN is fast, easy, and free. Just use IRS EIN Assistant. In order to complete the process you will need the following information:

  • The mailing address and street address associated with the business.
  • The legal name of the business or individual, and the trade name, if you have one.
  • If the business is a corporation, the state or country where it was incorporated.
  • The type of business you are forming.
  • The main activities the business will engage in.
  • The reason you are applying.
  • The social security number of the ‘responsible party’. (If the responsible party is also a business entity than its EIN will be used.)
  • If the business is an LLC, the number of members.
  • The date the business was started or acquired.
  • The date when wages were paid the first time. (If there have been any wages.)
  • The greatest amount of employees you anticipate having over the next twelve months.

Step 4: Apply for the Relevant Permits and Registrations

Depending on the type of business you will be engaging in and where you are located you may need a wide variety of permits and/or registrations. A great place to start is CalGold, with the CA Governor’s Office of Business and Economic Development. After that be sure to check with your county and city governments to make sure you aren’t missing anything.

Tips on How to Register Your New Business With the CA Government

Step 5: Setup Applicable Bank and Credit Card Accounts

Setting up a bank account and credit cards used solely by your business can help to keep your business and personal finance separate. (This is true whether you are setting up a business in Orange County or anywhere else!) This can make it easier to track your business activities which will help you to stay organized, facilitate strategic decision making, and make things a lot easier come tax time. (Having a good bookkeeper – like My OC Bookkeeper can help a lot with these things too. Give us a call!) The accounts can also help you to establish a credit history for your business, which can be helpful if you ever want to set up lines of credit or qualify for business loans.

Opening the accounts often requires an EIN, copies of your business licenses, and a document signed by the business owners saying that you are authorized to open them. The U.S. Small Business Administration has some great information on specific things you are likely to need depending on the type of business structure you have.

Step 6: Satisfy Ongoing Requirements of Business Ownership

After successfully setting up your business there are some important things to remember:

  • If you setup a fictitious business name, i.e. dba, you will have to renew it every five years.
  • Corporations and LLCs in CA have to pay at least $800 in franchise tax every year. Learn more about this from the CA Franchise Tax Board.
  • If you setup an LLC you will have to file a Statement of Information every two years.
  • If you setup a Corporation you will have to file a Statement of Information annually.

Useful Websites for When You Are Starting a New Business

California Resources

California Secretary of State – if you are starting a business in CA, this is the place to start. Important information on all kinds of topics.

California Governor’s Office of Business and Economic Development – the parent site for the CA Business Portal. A wider array of topics and resources, but a great place to learn about business and economics in CA.

California Franchise Tax Board – they handle personal and corporate income tax in California.

California Tax Service Center – a government created website designed to help you navigate the confusing world of taxes. A good supplement to the CA Franchise Tax Board site.

The California Green Business Network – a certification service for green businesses in CA.

California Chamber of Commerce – a nonprofit advocate for CA businesses. You can find wide ranging resources ranging from updates on business related legislation to compliance tips to information on human resources, among other things.

The California Small Business Association – nonprofit that advocates for small businesses.

Federal Resources

IRS – The internal revenue service. Take a look for info on federal taxes.

U.S. Small Business Administration – great tips on starting a business from the federal government.

There you have it. My OC Bookkeeper’s guide to setting up a business in Orange County, CA. Do you have any follow up questions? Are you interested in starting a new business but haven’t spoken to a bookkeeper or business strategist? My OC Bookkeeper is the best bookkeeping, tax, and business strategy expert in Orange County, CA, and Southern California for that matter. (Possibly America.) Take a look at our website. Enjoy our extremely educational blog. And reach out to us. Let’s do great things together!

Finally, take a look at the video below for some great information on starting a business in CA , or checkout our YouTube channel for more great content.