Home Business 12 Ways Outsourced CFOs are Ideal for your Business

12 Ways Outsourced CFOs are Ideal for your Business

13 min read

A business is all about finances. The success of a business, in most cases, is literally measured by the cash flow. Many businesses usually invest heavy to keep the flow consistent and growing, but to some, this is a major challenge. Maintaining the financial health of a business is not just about making sales and getting business

Saves Time

If you were to spend time determining and reporting the company’s financial information, both past and present, it would take you so much time especially if financial management is not one of your strong skills. Outsourcing a CFO would save you this time and allow you exert this energy on something you are better at. For instance, you could be a better marketer. Outsourcing gives you the chance to run two things concurrently; marketing and financial management.

Saves Money

Your business is bound to save on money by outsourcing a CFO because unlike an in-house CFO who will require a monthly stipend/salary, outsourcing will only require you to pay money based on the hours they will be working on your records, plus outsourcing is a once in a while venture, especially when you need to balance your books, audit and/or make major financial decisions.

Allows Leverage for Growth

This is closely related to saving time and it is a powerful way outsourced CFOs is ideal for your business. It allows you a leverage for growth in that, you will put in more time and energy on other aspects of your business, especially those that you have a strong skill set on as the CFO takes charge of monitoring your finances and offering advice on the best financial path you can take in order to grow your business. 

Gives Access to Limited Resources

It is not a surprise to find yourself doing so many things all at once, especially if the business is pretty new. Most of the time, you realize that the things you do are actually not things you are good at but you do them because they have to be done. One such thing is financial management. Outsourcing a CFO gives you 100% access to that particular resource that you were lacking. Instead of spending days and weeks trying to figure it out, a professional can come in handy and work on it within the shortest time possible. 

Better Management of Finances and Cash Flow

Outsourcing a CFO provides an ongoing leadership and financial advice to your operations team. They also help to execute strategic plans, transactions and long-term projects that require financial security. A CFO will also show you how to manage your finances better by helping you to draw a budget and pushing you to stick to it. 

Influence Revenue Growth

Partnering with a CFO can have a tremendous positive impact on your revenue. CFOs are responsible for the company’s finances and their professionalism can increase revenue fast. They have the capacity to easily negotiate lower costs with suppliers, offer transparency in bookkeeping and finances and also cut back on unnecessary costs that the business is incurring. 

Employ Cost Saving Technology

The nature, and by far the duty of a CFO is to be tech savvy and research on technology that can be employed to optimize costs while still working efficiently. A CFO will first understand your business model before attempting to apply their knowledge and make recommendations that would lead to business development and more revenue.

Find Sources of Capital

CFOs come in handy to relieve you of the burden of following up and creating a rapport with your investors, lenders, suppliers and partners. When this weight is off your shoulder, you are able to focus on business development and brand building. They are usually deal makers who focus more on deals that help grow your business, even if it involves fundraising.

They Play Advisor

CFOs will study your business model keenly before giving you a broader perspective in all aspects of operations. They focus on execution and are good at formulating a working strategic plan and push through until it is implemented.

Gain Administration Guidance

Granted. Business owners have strengths and talents, and are also knowledgeable in the field they choose to venture in, but if you lack administration skills, then your organization may suffer. A CFO can come in handy and help out with bookkeeping, accounting, tax compliance and budgeting, all of which are essential components of a business and must never be neglected. 

Find Help in Planning the Succession Process

Most business owners tend to leave the business in the long run whether they choose to retire, for health reasons or when they decide to sell the business. Whatever the case is, a succession plan can be a daunting process and a CFO can help come up with a solid exit and succession plan and see to it that it is executed efficiently. The plan usually includes the person or organization that is taking up the business, the risks to be addressed and how the lease agreement and legal matters will be taken into consideration. 

Control Risks

The world is fast becoming volatile with more additional regulations especially on businesses. A CFO will ensure that risk assessment and mitigation is performed effectively and that the business is in compliance with all legal requirements. Most CFOs understand risks through a financial lens and will therefore manage risks as well as plan and execute strategies that maintain strong internal controls without incurring extra costs or having to deal with unnecessary financial obligations. 

CFOs have overtime become the backbone of many a corporation because they lead the board of financial decision makers and monitor the health of a company’s finances. They also push the company to greater heights by formulating more ways to save money and gain more revenue. In the near future, a CFO will add more value as a strategic partner to the business. 

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