Does any one of the following describe your business?
- Your small business is experiencing rapid growth; you’re considering scaling your operations but doing so requires a set of financial skills and services that exceed those of your existing team.
- Your finances are in a state of disrepair, and even the slightest financial lapse can set you back.
- You require strategic insights into your products’ performance, customer demographics, and financial functions.
- You’re undertaking a project that requires a highly skilled set of financial hands. For instance, you might need help raising capital.
Finances are the heart and soul of your organization. That’s why chief financial officers are an integral part of any company’s management team – they’re strategists, accountants, and treasurers all rolled into one.
A CFO will provide you with a greater understanding of your business’s financial position and offer comprehensive insights to increase your firm’s financial strength and security.
But when is the right time to hire a CFO?
If you’re looking to gain more visibility into your company’s finances or have a gap in your finance functions, the time has come for a dedicated CFO position.
That’s not to say that this will always align with your financial resources. Sometimes, a permanent CFO role isn’t financially viable just yet. And that’s where CFO outsourcing comes in.
Why You Should Consider CFO Outsourcing Services
Today’s market is rich with high-quality, part-time talent that can fill vital strategic roles – yes, even C-Suite roles.
CFO outsourcing will lead to better cash flow control, increase operational efficiency and help to accelerate business growth. If you’re at the beginning of your growth journey or are growing exponentially, it’s crucial to develop financial processes and functions to support your growth.
On the strategic side, outsourcing CFO functions will help keep tabs on your company’s financial wellbeing.
Some commonly outsourced CFO services include:
- Forecasting and budgeting
- Reviewing and improving cash flow
- Improving growth and developing a scalable business model
- Long-term strategy to improve your financial position
- Developing plans for future growth
- Reviewing and analyzing KPIs
- Raising capital and maximizing profits
The benefits of CFO outsourcing are plenty, the most evident being: you get expert advice and strategic leadership services at a fraction of the cost.
Hiring experienced professionals to take on the CFO role in-house is expensive. According to Investopedia, the average CFO can expect to take home just under $400,000 a year.
While they can bring invaluable knowledge and expertise, paying that much money to one individual can be a massive drain on your budget. Yet, that’s not a guarantee that they will fit into your company.
Outsourcing CFO Services means you get to bring in a consultancy firm that works as an extension of your team, and since they’re available on a fractional, part-time or as-needed basis, you get to save quite a bit of money.
And the benefits don’t stop there.
What CFO Consultants Have to Offer
Outsourcing allows you to hire for the services you need when you need them. In addition, you can scale the services up or down depending on demand.
Having this scalability can be beneficial in several ways:
Collaborative strategic planning
As a business owner, you have a vision for your company and what you want to achieve. What’s less clear are the financial steps required to achieve that vision.
CFOs excel at gleaning insights from financial data enabling you to capitalize on your strengths.
The best part about contracting CFO services is that consultants often have a referral network or an internal team that excels at strategic planning.
It’s for this reason that consultants excel at eliminating blind spots and bottlenecks in your operations.
360-degree view of accounting data
Data rules in the digital age and making sense of financial data becomes increasingly important as your company grows.
Keeping your records organized is one thing; capturing insights is quite another.
An outsourced CFO will look at the data and translate it into actionable insights you can use to make informed decisions.
Financial accountability
Your finances will grow in complexity as you scale your business. Nonetheless, it’s crucial to maintain internal controls to ensure accuracy and compliances.
With an outsourced CFO, you can improve financial controls to reduce errors and ensure the accuracy of accounting data.
Plus, you can’t have fraud undermining the integrity of your organization.
CFO outsourcing gives you instant access to a much more efficient set of financial tools to keep your business compliant and nefarious activities at bay.
Can help raise capital
Raising capital can be a daunting process.
An experienced CFO consultancy has relationships with financial backers, which helps to simplify the process. Not to mention they understand the market and can introduce capital options you may not find on your own.
You can leverage CFO services for thorough market analyses as you deliver a business plan. This way, you can improve the chances of securing capital.
Ready to Scale Your Operations?
Say you’re looking for some expert help guiding your business, CFO outsourcing can provide the edge you need without compromising your bottom line. Contact us if you’re looking to explore outsourced CFO services, and let us help you succeed.