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Benefits of an Outsourced CFO

Benefits of an Outsourced CFO

No matter the size of a business, relinquishing some financial needs to an outsourced chief financial officer (CFO) can help business owners redirect their attention into other areas of the company. Whether affording a full-time CFO isn’t viable or the business is aiming to expand and access extra expertise on a part-time basis, considering alternatives to permanent employment can help tackle business obstacles that are hindering progress.

What Services Can an Outsourced CFO Provide?

Businesses across various sizes and sectors frequently turn to outsourced CFOs for professional guidance on a range of subjects. An outsourced CFO can help with the following:

  • Business and Financial Operations – Working with businesses to adjust their financial plans to ensure that business goals are being met
  • Business Relationship Management – Finding areas within the business’ current strategy that are preventing growth or could cause long-term setbacks
  • Financial and Benchmark Reporting – Providing ongoing reports that can help identify key strategic insights about different areas of the business
  • Software and Technology – Ensuring accounting software selection and implementation

Why Hire an Outsourced CFO?

A business should consider consulting and hiring an outsourced CFO whenever it needs strategic financial guidance, specialized expertise or temporary support to address specific financial challenges or opportunities. Outsourced CFOs can help businesses in several situations while providing the following benefits.

Cost-Effective Expertise

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

By working with an outsourced provider, businesses are also able to scale up or back as the needs of their business change. Particularly if they are 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’ accounts is a time-consuming process, particularly when individuals are being pulled into other tasks by various departments and teams. Having an outsourced CFO allows individuals to reallocate their internal resources more effectively while allowing a dedicated individual to focus solely on the accounting tasks they need help with.

Not only will an outsourced CFO help business owners stay on top of their books, avoid possible fraud situations and tackle any financial challenges in a timely manner, they will also be able to devote more of their own time to the tasks they are good at. This will ultimately lead to greater productivity across your team and improved quality of work.

Strategic and Growth-Focused Insights

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

From here, business owners and CFOs can work together to create a long-term strategy that can help the business meet and exceed the goals they have outlined. CFOs will also help business owners 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 the business to plan up to 12 months ahead. Cash flow management is also a significant part of this. An outsourced CFO can provide guidance on optimizing cash flow processes and improving working capital management.

Support for Financial Challenges

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

Businesses may be dealing with a wide array of issues from a fraud situation amongst 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 a business discover additional cash assets that were previously unknown, or they can offer advice and support in managing negotiations with banks or lenders.

Interested in working with an outsourced CFO? Contact the Brown Plus team today!

Posted In: Outsourced Accounting Services | Insights

About the Author - Brian Marchuck, CPA

Brian is an Audit Principal at Brown Plus with over 15 years of experience providing accounting, auditing and tax services. He is a key member of the Firm’s local government and nonprofit auditing team. Brian earned his Bachelor of Science degree in Accounting and Finance from Millersville University.

Brian is responsible for planning, performing and supervising audit, review and compilation engagements for local governments, school districts and nonprofit organizations. He also performs outsourced Chief Financial Officer (CFO) services for municipalities and other local governmental entities. Additionally, Brian provides tax services to a client base including corporations, partnerships, nonprofit organizations, estates and individuals.

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