The Chief Financial Officer (CFO) is one of the significant contributors to your business's success. Whether you're a startup or an established conglomerate, the CFO can make or break your company. But contrary to popular belief, your business doesn't always need a full-time CFO. Depending on what you need, it would make sense to outsource a CFO rather than keep an in-house one.
What is an outsourced CFO?
An outsourced CFO is a financial expert whom you bring into your team when the situation calls for it. They can either be brought in to solve a particular problem or serve as an interim CFO until you find the right person to fill the role. Either way, you hire them for their skills and qualifications to help you make better financial decisions. But they work based on the terms you set and nothing more.
Here are the benefits of outsourcing a CFO:
Hiring a financial expert at the executive level can quickly drain your funds, especially if you're a startup. When you outsource a CFO, you'll essentially only be paying for the services you need or the projects you need to be completed, allowing you to save on overhead costs. You also don't have to spring for benefits or worry about profit-sharing since they will not be permanent members of your company.
An excellent way to maintain stability
If you're a company, which had its CFO but lost them due to unforeseen circumstances, outsourcing a new one makes sense to maintain stability and retain consistency. It can be hard to find a replacement in such short notice, so outsourcing is a great solution as you take the time to find a suitable replacement.
You get "fresh eyes"
Hiring someone from outside of your company can help you gain a fresh perspective on your business. Since the outsourced CFO has no idea how you operate, they can offer an unbiased opinion on your company's financial situation that can be beneficial when you're making significant decisions.
You get to improve your processes
Outsourced CFOs aren't tethered to a single company, so they've become adept at tweaking and modernizing accounting systems and processes of different organizations. When they hop on board, they'll get to work straight away, pinpoint the problems that need correcting, and offer a fix. Once improvements are enforced, you and your entire team will have more time to focus on your strengths and improve business performance.
Offer sound strategic planning
An outsourced CFO can help you craft a strategy and business plan that can do wonders for your business. When you orient them with the financial problems your business is currently facing, they'll be able to offer expert advice and come up with long-term strategic planning and guidance tailored to your specific requirements. It can help turn around your business and take it to the next level.
In a struggling or growing business, outsourcing a CFO can yield better financial efficiency. If you need help outsourcing one, get in touch with us today to see how we can help.