All companies go through stages of growth from start-up to growth-stage and to maturity. However as the company becomes more profitable and financial aspects become more multifaceted, more complex financial proficiency and strategic advice is required to ensure that the business success continues.
For most small to medium-sized companies though, hiring a CFO with a six-figure salary is not an option. Let me introduce you to a model that can take your company to the next level and help companies to rethink, automate and scale their businesses.
An outsourced CFO model involves a business enlisting a CFO on an ongoing part-time, temporary or project-based basis. This gives business owners the strategic financial expertise they need, while saving them money in terms of the salary, benefits and additional overhead that is typically associated with hiring a full-time financial officer. It also gives them the flexibility to retain a CFO for as long or as little as they like.
Responsibilities of an outsourced CFO may include overseeing financial and accounting functions, training staff on accounting best practices, developing cash flow improvement programs, minimizing tax liability, evaluating internal controls, and producing meaningful financial statements. (thomasreuters.com)
Here are some advantages of an outsourced CFO for your company:
· An independent perspective. Outsourced CFO’s are priceless in most areas of business because they bring an experienced yet different point of view on a company’s problems and struggles. This fresh perspective can help solve problems that in-house staff may be too close to in order to see solutions.
· Streamline accounting systems. Lax internal control systems and antiquated processes and methods can greatly hinder the cost efficiency of a company, department or indeed position. Outsourcing this project can quickly help you streamline your processes to achieve cost savings through smarter labor practices and other means.
· Accurate financial statements. Accurate financial statements and monthly financial reporting is critical if you intend to grow your business and the benefit of an experienced CFO who really understands how to prepare and review these critical documents cannot be understated.
· Expense Savings on Accountant and CFO salaries. The average CFO salary is around $250,000 or more and paying a full-time CFO’s salary may be difficult or impossible for your business. With an outsourced CFO service, you don’t have payroll taxes or benefits for your CFO. This adds up to significant savings without a sacrifice in the quality of work.
· Financial and Business Advisory Coaching. When you don’t know how to increase profitability or secure your company’s financial condition, you need strategic advice. An outsourced CFO with business growth knowledge and expertise can provide the guidance and advice you seek.
· Preparation of financial information. You need financial documents to show any potential investors or venture capital firms you approach. With an outsource CFO service, you’ll get expertly prepared financial information to help you attract investors.
· Restructuring. Outsourced CFO’s can review your company’s Statement of Financial Condition and can help you find ways to bring your accounts payable up to date, decrease your receivable days and free up cash.
· Fund capital improvements. Effective cost-cutting strategies will free up cash needed to invest back into your company through capital expenditure, pay off any substantial debts your business may have or to be used to accelerate and scale your business.
· Financial analysis and consulting. Outsourced CFO services can provide accurate, high-level financial analysis of your cost and profits to help you effectively plan strategies to deal with the financial problems or concerns you face.
Let us show you the key to growing and scaling your company.
We invite you to view our webinar “Business Growth Secrets Revealed: How High-Achieving, Growth-Oriented CEO’s, Managing Directors and Owner-Managers can stop overwhelm and focus on growing and scaling their companies 10X to create a hyper-profitable business!”