Do you know where you are making money? How about losing money? Is your financial data useful in making good business decisions?
If you answered no or are unsure of the answers to these questions, you may benefit from the services a CFO provides.
A CFO wears many hats in a business, including:
- Supervisor – A CFO is responsible for overseeing the administrative accounting functions/processes to ensure they are running smoothly. In addition, a CFO is responsible for ensuring the financial data is accurate and timely.
- Planner – A CFO helps you manage your cash flows. A CFO keeps a watchful eye on the inflows and outflows and provides you with the information necessary to make investments, purchases, etc.
- Interpreter – A CFO is there to help you understand the numbers. A CFO is responsible for presenting your financial data in a useful and meaningful manner to you.
- Analyst – A CFO is responsible for analyzing the market trends and providing you with bench marking data.
- Navigator – A CFO helps guide your business towards strategic growth. A CFO is there to help you understand your business strengths/weaknesses and identify opportunities to leverage those strengths or improve those weaknesses. In addition, a CFO is there to help you identify any threats that may affect your business.
The information and guidance this individual gives is essential to your business and its growth. But what if you can't afford a full-time CFO?
Outsourcing this critical business function is a way to gain the information you need, without having to bear the burden of hiring someone full-time. Here are some things we encourage you to look for when you're thinking about hiring an outsourced CFO:
- Confidence – Hiring an outsourced CFO who knows what they're doing can help you rely on your financial data and have confidence in your business decision-making. In addition, having an outsourced CFO reduces fraud risks as it is an added layer of oversight.
- Collaboration – When you hire an outsourced CFO, consider where they work. There are outsourced CFOs who are sole proprietors. They carry a great deal of personal knowledge from their years in the business world. However, you can also hire a CFO from a larger business advisory or accounting firm. When you hire an outsourced CFO from a reputable firm, you are not hiring an individual; you are hiring a team of resources.
- Cost Effective – When you consider all of the cost that go into hiring and maintaining a full-time CFO (salary, paid time off, payroll taxes, insurance (unemployment, workers compensation, health, dental, and vision), 401k, and training – just to name a few), outsourcing is usually a cost effective alternative. In addition, the service offerings are scalable to your needs and budget.
- Concentration – Rather than trying to do it all yourself, hiring an outsourced CFO means you're hiring a professional accountant that knows and loves accounting. They concentrate on the accounting aspect of your business so you can concentrate on running your business and doing what you love to do.