Consider hiring a full-time CFO if your business has been growing and you need more help with accounting and financial management. But before you do that, consider an alternative route: hiring an outsourced CFO. Outsourcing your finance team can give you the benefits of having a full-time CFO without the time commitment or overhead cost of hiring one. Here are some key reasons why outsourcing your finance function is worth considering:
You need more time to manage your company.
As a business owner, you need more time to manage your company’s finances. You should ensure the company is profitable, not just report on its earnings.
Hiring an outsourced CFO means you can focus on what matters most: growing your business and making money.
Your CFO will take care of all the financial details so that you have more time to focus on other aspects of running your company, like sales growth and new product development.
You’re a growing business.
As a company grows and more employees are added, the business’s costs increase. With more customers comes more revenue for your company. As the complexity increases and management needs to be dealt with, reporting becomes time-consuming and difficult without the right tools. It can become hard to track expenses, sales and marketing efforts, financial analysis needs—the list goes on!
A CFO will help you manage all this while keeping an eye on your bottom line.
You need to improve the quality of your accounting and financial reporting.
If you want to improve the quality of your accounting and financial reporting, an outsourced CFO can be a huge help. An outsourced CFO doesn’t just handle the day-to-day operations of your business—they also have the expertise to help with long-term planning and strategy so that you can make wiser decisions about how money is spent.
A good CFO can take an objective look at your business operations, so they can give you honest feedback on what’s working well and what needs improvement. They can also help you ensure that your financial records are in order and accurately reflect your business’s performance.
The best CFOs will have a background in accounting, so they know what information you need to produce accurate reports. They’ll also be familiar with all the different accounting software packages, so they can recommend one that’s right for your company.
You want more timely and valuable financial information.
Outsourced CFOs are more likely to have the tools and skills to promptly provide you with the financial information you need. They can help you make better decisions, allowing you to run more efficiently and effectively.
By outsourcing your CFO, you can free up your time so that you can focus on running the business. You’ll be able to meet with clients and build relationships while knowing that your finances are being handled by a professional who understands your needs and goals.
You’d like to have better control over your cash flow.
When you outsource your CFO, your business will have more control over its cash flow. Cash flow is the amount of money that comes into and goes out of your business. A positive cash flow means receiving more money than you are spending, while a negative cash flow means the opposite: your expenses exceed income.
Managing cash flow is vital to all businesses because it allows them to be self-sufficient; however, it’s essential for small businesses because they often need more capital to pay their bills after work hours or until the next day. This can lead to missed payments and poor credit ratings for vendors and employees.