If you believe your business is not complex enough in size, structure or strategy to give any thought to engaging an outsourced CFO, keep reading, and you might just change your mind!
A CFO adds value to small and midsize company’s leadership team in several ways. In addition to handling general financial matters, a CFO can create a strategy for growth, and direct the company to stay current and competitive in today’s financial and business markets. A CFO’s day-to-day responsibilities include: accounting, finances, reporting, cash flow, plans for future financial transactions, risk management, financial strategies, funding, budgets, and forecasts, just to name a few. Regardless of the size or structure of a business, most companies have one or more people assigned to these tasks. Without an official CFO, that often means these responsibilities are not done well, efficiently, on time or sometimes even at all. This is why an outsourced CFO is gaining popularity as a very viable option and best practice.
Reason Number 1 – Cost
A fulltime CFO is costly given today’s going rate of a six-figure salary. Outsourcing saves money by paying for services as-needed, rather than hiring a full time executive. The cost varies depending on the company’s goals, projects and business cycles. Outsourcing this role means the company only pays for services provided while avoiding the expense of salary and benefits typically associated with a fulltime CFO.
Reason Number 2 – Perspective
An outsourced CFO brings experience and perspective gained from working with a variety of companies and sometimes industries. So not only does outsourcing take a burden off the accounting staff, it also infuses the department with the leadership, broad knowledge base and best practices of an outside expert.
Reason Number 3 – Growth
Every organization regardless of size wants to remain competitive and grow. That means making difficult financial decisions. Planning for future transactions is critical and a CFO with a proven track record can guide your business towards achieving its goals.
Reason Number 4 – Relationships
An experienced CFO will have an impressive network of personal contacts and professional services providers such as bankers, attorneys, M&A, alternative financing options, investors and funding sources, and so on. Take advantage of that and have your outsourced CFO make some new connections for you.
Reason Number 5 – Technology
If you’re wary of this critical staff member working mostly offsite and with other clients, you can put those fear to rest! Today’s technology makes it easy for remote workers to respond quickly and effectively. Video conferencing, project management tools, screen sharing and more allow your outsourced CFO and your team to work seamlessly without losing time or money traveling to the office.
At LGA, we offer outsourced controller and CFO level services by project or an on-going basis. Our team brings experience and expertise from servicing a wide variety of clients and industries, from start-up to mature, domestically and internationally owned. Please contact Janine Danielson, CPA to learn more about how you could take advantage of outsourced CFO services.
Written By Janine Danielson