As a small-scale business, it’s incredibly amazing to see your business grow and expand over time. The chances are that your wonderful team has grown bigger, your products or services are becoming in demand, and sales are constantly coming in. This business success doesn’t only present you with opportunities but also new challenges along the way. One of which is the need to manage your finances properly. That is where a chief financial officer (CFO) comes into the picture.
Simply put, a CFO is the primary officer of your company who has the responsibility for managing your company’s finances. These responsibilities include financial planning, management of financial risks, record-keeping, and financial reporting. When it comes to hiring a CFO, you have the option to get a full-time employee or outsource a CFO. That said, here’s why you should consider hiring an outsourced CFO.
1. Your CFO serves as your right hand for your growing business
You may think that your CFO is only responsible for your bookkeeping and accounting. However, there’s more to this officer than meets the eye. Your CFO serves as your right hand that will not only manage your overall finances but will make sound business decisions for the continued growth of your business.
What’s great about an outsourced CFO is that you can expect that he or she is an expert in the financial field. You can heavily rely on his or her knowledge, skills, and expertise in business and finance. Having this outsourced CFO as your right hand can make a great deal of difference in your business.
2. Your CFO helps reach the full growth potential of your business
A CFO is paramount in your business’s growth and success. It doesn’t only oversee everything that has to do with your business finances. However, your CFO needs to understand your business, know the current state of your company, and identify what sorts of challenges your business is currently confronted with.
What’s good about an outsourced CFO is its unbiased perspective in business and finances. He or she will be able to give you sound pieces of advice and help you make robust decisions. Your officer has probably worked with numerous clients, and with these experiences, he or she can apply the best financial practices in your business.
3. Your CFO ensures keeping up with business requirements and law compliance
As a company, there are business requirements that you must keep up and legal compliance that you must not miss out on. Neglecting these essential aspects might compromise the status of your business and your success in the long run. This can be all the more crucial since you are dealing with finances.
That said, an outsourced CFO will help you navigate in the right direction as far as business requirements and legal compliance are concerned. If you aren’t sure about all these financial legalities, your outsourced CFO will take good care of all of these.
Final words
A CFO plays a vital role in ensuring continued growth and the overall success of your business. As mentioned, you have two routes to take—either get a full-time employee or hire an outsourced CFO. With the valuable benefits outlined above, you have all the right reasons to consider the latter option.
If you need to outsource a CFO for your growing business, get in touch with New Age Global Advisory today to see how we can help!