As any small to medium sized business (SMB) grows, the complexities that arise require sound financial guidance for long-term success. Chief Financial Officers (CFOs) can provide this much-needed knowledge and expertise, allowing SMB owners to better understand their complete financial landscape and how their decisions affect it. Yet bringing on a CFO as an in-house team member is often not realistic for many SMBs due to various constraints on their resources and capabilities. For these reasons, outsourced CFO services offer a great solution.
What Are Outsourced CFO Services?
Outsourced CFO services are an increasingly popular way for businesses to gain the financial expertise of a CFO and the associated financial benefits, without needing to bring on additional, full-time staff. These services operate on an as-needed basis and leverage expert consultants who provide detailed analysis, recommendations, and strategies tailored to assist in making informed decisions.
There are many additional benefits that come with outsourced CFO services, including:
1. They’re More Cost Effective
Outsourcing CFO services can be beneficial for SMBs due to the lower cost. Traditional CFOs generally require a full-time salary and benefits package, as well as additional costs related to physical office space. This model is often cost prohibitive for SMBs that may not have the necessary resources as well as limited working capital.
Conversely, when you select an outsourced CFO option, no long-term commitment or extensive payments are needed. Instead, you only pay for the services rendered which allows you to minimize your costs. An outsourced CFO can also provide specialized financial advice that can benefit an SMB’s bottom line, such as providing key insights into cash flow management.
2. Better Time Management
As a business owner, time is of the essence. Outsourcing to CFO services instead of taking a DIY approach, can free up valuable time. This is because busy business owners are no longer responsible for spending time navigating financial statements and the ever-changing laws related to them. Having to manage day-to-day finances and related tasks amounts to a huge amount of extra work that distracted or inexperienced owners may not be able to handle.
Through outsourced CFO services, business owners can focus on other activities while an experienced financial specialist handles their needs. Having the CFO manage cash flow, put together financial reports, identify opportunities for improvement and development, generate forecasts and budgets, reduce tax liabilities, and negotiate financing will free up valuable time from the business owner’s day.
3. Strategic Planning
Outsourced CFOs can be an invaluable strategic partner. They look at the big picture, and can offer guidance in setting up realistic goals and objectives while helping to identify opportunities for growth. Leveraging their knowledge and experience, they define short and long term planning goals while outlining solutions, processes, and actionable steps that executives need to take in order to optimize successful results. They also bring creative problem-solving capabilities which allow them to assess challenges, analyze available resources, and create healthy models for evaluation, implementation, and tracking.
4. Access To Expert Financial Oversight
Through partnering with an experienced financial professional, companies can gain knowledge of the most up-to-date and innovative strategies for managing finances to increase profitability and ensure compliance. An outsourced CFO works with the company to provide personalized support and guidance, from breaking down complex financial models to obtaining debt financing and formulating cash flow forecasts. By leveraging this expertise, companies are better able to make data-driven decisions that have long term success in mind and positively shape their bottom line.
5. Risk Management
Outsourcing to a CFO can be an effective way to tackle risk management in any business. Their vast experience and expertise allow them to identify risks that often go unnoticed. This enables the CFO to analyze current risk levels, identify weaknesses, and recommend corrective actions accordingly. They can also help to stay on top of analysis related to external events like changes in the market, as well as assist in preparing for possible volatility that could pose potential threats. By doing so, a CFO will ensure that the business is prepared for any scenario and stays organized and up-to-date when it comes to managing risks.
Is Your Company Looking For Part Time CFO Services?
Are you looking for an expert, reliable financial advisor to provide part-time CFO services for your company? At Minton CPA & Associates, we pride ourselves on being the perfect choice for any business seeking a secure and reliable financial partner. We provide experienced, knowledgeable CFO services that are tailored to the specific needs of our clients, backed by decades of expertise in accounting and financial services. Contact us to learn more about outsourcing to our part-time CFO services and see how we can be an invaluable asset for your organization. Call us today at 757-546-2870.