4. Labor Cost Management
At times, labor costs end up being a company’s biggest downfall. It could either be that they overhired, or they are low on staff, which ultimately affects the business they run. In a staff-heavy organization, it is important to keep track of payroll costs and whether or not these translate to efficient operations in a company.
Labor Cost Management allows you to study whether labor costs are up to par with how the company is currently doing, and allows you to study whether or not someone should be given a raise, or if something needs to be cut down.
5. Variable vs. Fixed Expense Reporting
In a business, fixed costs are inevitable. However, there are variable expenses that fluctuate when doing work. Your CFO will help you identify which of these variable expenses you could do without so as to maximize your profit.