How Your Company Can Meet its Financial Goals with an Outsourced CFO

by Louis Bongiovanni

Growing small businesses are seeking new ways to run smarter and more profitable. Many entrepreneurs are taking traditional in-house positions and outsourcing them with great success. Many leverage the power of having an outsourced Chief Financial Officer, or CFO.

Working with an outsourced CFO who understands your industry provides business owners with a person they can use as a sounding board who will base their advice on financial analysis and experience.

Having a CFO on Demand is like having a secret weapon on staff.

They help take much of the stress of financial management away from an overworked owner and analyze the information to allow the owner to be able to make more informed business decisions. While you are busy with working in the business, the CFO on Demand will be helping you work ON the business.

How can working with outsourced CFO services change your business and help you meet your goals? Read on and we’ll discuss the many benefits.

What Is An Outsourced CFO Service?

What can an outsourced CFO do for your business, and how do they differ from a traditional CFO?

An outsourced CFO will usually work part-time or on a project basis. They produce targeted financial analysis and strategies for your company which help optimize the organization of your company to ensure success.

An outsourced CFO isn’t paid a salary. They are paid for the time that you use their expertise. Many charge a set monthly fee based on the work deliverables desired.

Your outsourced CFO will help tackle financial tasks such as raising capital, addressing cash flow issues, or improving profit margins. They will be the link between your accounting department and the owner when financial information needs to be analyzed and decisions made.

Outsourcing Can Mean Big Savings

Do you like saving money?

A silly question, but for smaller burgeoning companies, it can be hard to know when to bring a CFO into the mix, and how to afford their services.

An in-house CFO likely means a six-figure compensation package. Unable to afford that expense, businesses begin to seek less experienced prospective hires in order to balance out the high cost needed to employ a full-time CFO. A compromise is made in experience in exchange for affordability and the company does not get the best candidate for the position.

Hiring a part-time, outsourced CFO will stretch your dollar much further. It saves you money on tax payments, health benefits, and retirement premiums, all of which you would’ve had to provide to a full-time salaried member of your team.

Hire The Best For Your Company

In any business, a good financial team can make the difference between success and failure.

Outsourcing will allow your business to hire a highly qualified CFO at a price that won’t break the bank. You can select a professional who is the right fit for your company’s financial goals.

Speaking broadly, outsourced CFOs tend to have a wider range of experience, as they have helped a variety of different companies. This means that your company can work with a CFO who has specific experience with the projects or problems you are currently facing.

Outsourced CFOs also typically have access to a wide range of financial talent. They can easily assemble temporary teams to help companies reach their goals, and dissolve these teams at the completion of a project.

In many cases, an outsourced CFO can deliver these scalable teams at the same price point, or even lower, of that of a salaried CFO.

The Help You Need, When You Need It

Take a realistic look at your business. Would a full-time CFO be a help or a burden?

The fact is, most small or medium-sized businesses don’t need a CFO full-time. And you don’t need to hire a CFO full-time in order to reap the benefits that the position can offer.

A small business might need the assistance of a CFO for a specific period or for a short period of time monthly. The assistance of a trained professional is usually required during a company expansion, to develop internal financial systems and policies.

With an outsourced CFO, you can specialize your hire towards your current situation and its intended duration, instead of committing to someone for the long-run. An outsourced CFO can be a secret weapon, deployed to assist analyzing the company finances when you need the extra help.

Many outsourced CFO services have experienced professionals ready to help at short notice. An outsourced CFO will be ready when YOU need them, on demand.

The Smartest Way To Run Your Business

A good business knows how to run efficiently and maximize profits.

For the entrepreneur, outsourced CFOs are an efficient way to analyze financial information in order to run a business. Using an outsourced CFO gives the owner the freedom to focus on increasing the revenue of the company.

Interested in learning more about how your company can benefit from an outsourced CFO? Contact us for a free consultation.