Benefits of an Outsourced CFO

No matter the size of your business, relinquishing some of your financial needs to an outsourced chief financial officer (CFO) can help you to redirect your attention into other areas of the company. Whether a full-time CFO isn’t financially feasible right now, or you’re looking to scale and bring in additional expertise on a part-time basis, looking beyond a permanent employee can help you to overcome challenges within your business that are preventing you from moving forward.

Some of the services that an outsourced CFO can help with include:

  • Working with you to adjust your financial plans to ensure that business goals are being met
  • Finding areas within your current strategy that are preventing growth or could cause long-term setbacks
  • Providing ongoing reports that can help identify key strategic insights about different areas of the business
  • Ensuring compliance and avoiding possible errors and fraudulent operations

Why hire an outsourced CFO?

Cost-Effective Expertise

A full-time CFO can be incredibly costly for your organization, both in salary and benefits. Working with an outsourced CFO can provide cost savings, while still allowing you to benefit from the experience and skills of a highly qualified CFO.

By working with an outsourced provider, you’re also able to scale up or back as the needs of your business change. Particularly if you’re a growing business, having an experienced CFO to assist with budgeting, payroll processing, and other financial tasks can save a significant amount of time.

Improved Resource Management

Working on a business’s accounts is a time-consuming process, especially if you’re being pulled into other tasks by different departments and teams. Having an outsourced CFO allows you to reallocate your internal resources more effectively while allowing a dedicated individual to focus solely on the accounting tasks you need help with.

Not only will this help you to stay on top of your books, avoid possible fraud situations, and tackle any financial challenges in a timely manner, you’ll also be able to devote more of your own time to the tasks you’re good at. This will ultimately lead to greater productivity across your team and improved quality of work.

Strategic and Growth-Focused Insights

When you’re running a business, it can be difficult to take a step back and look objectively at your performance and results. An outsourced CFO can help to provide an independent view of the situation, giving you unbiased advice based on real data and insights.

From here, you can work together to create a long-term strategy that can help you meet and exceed the goals you’ve outlined for the business. They’ll also help you to make quick decisions based on these insights, something that can be more difficult to achieve with a full-time employee who has a more biased view of the company.

An experienced CFO will also be able to provide frequent reporting around industry forecasts and help you to future-plan up to 12 months ahead. Cash flow management can is also a significant part of this, so they’ll work with you to assess the status of any business assets that could impact the company’s growth.

Support for Financial Challenges

If your business is struggling, the thought of spending money on external support may feel difficult. But an outsourced CFO can help to provide guidance and expertise that will lead your company back in the right direction.

You may be dealing with a fraud situation among your employees, poor cash flow or profitability, high client churn, debt repayment, or are struggling to raise necessary capital. Working with an outsourced CFO can help you to find additional cash assets in your business that you weren’t aware of, or they can provide advice and support in managing negotiations with banks or lenders.

Interested in working with an outsourced CFO? Contact the team at BSSF today.

Disclaimer: Information provided by Brown Schultz Sheridan & Fritz (BSSF) as part of this blog post is intended for reference and information only. As the information is designed solely to provide guidance, and is not intended to be a substitute for someone seeking personalized professional advice based on specific factual situations, responding to such inquiries does NOT create a professional relationship between BSSF and the reader and should not be interpreted as such.

Although BSSF has made every reasonable effort to ensure that the information provided is accurate, BSSF makes no warranties, expressed or implied, on the information provided. The reader accepts the information as is and assumes all responsibility for the use of such information.