“If you save a dollar, you’ll drop a dollar to the bottom line. But if you save a dollar and you reinvest that back into the business in a disciplined way, a returns-based way, that dollar is actually worth a lot more in the future. And that’s really what running a business is all about.” — Cathie Lesjak, CFO of HP.
An outsourced CFO is a finance leader outside your organisation that provides top-tier finance, business, accounting, and operational guidance for your business. An outsourced CFO can be used full-time, part-time, or as an interim for the duration of a project. Here are some pointers describing how an outsourced CFO can help save time and money and transform your business efficiently.
Manage cash flow
The most common problem in business is how to handle cash flow. A chief financial officer (CFO) helps you make a cash flow statement so you can see where your money went. They cut your costs, make your business run more smoothly, find ways to make more money, manage your assets and debts, and keep track of any changes in your net income.
Help in Fundraising
An outsourced CFO has worked in your industry and knows investors, so they can help you network with them. Also, investors and banks won’t give you money if your financial information isn’t complete, and a CFO’s job is to present your company’s finances in a convincing and accurate way.
Accurate financial reports
Financial reports must be correct for a business to run and its finances to stay stable. You need correct information for financial analysis, filing taxes, and making financial statements. By giving this job to another company, your organisation’s financial records won’t be affected by biases within the company.
A third-party company with nothing to do with your business will be an outsourcing company your CFO will be a part of. So, they can give you good, unbiased advice that will help your business run well. A full-time CFO may have personal goals that make it hard to see things objectively.
Availability of state-of-the-art systems
Outsourced accounting service providers have access to good technology that helps them do their jobs efficiently and from a distance. Unlike the old system, this has nothing to do with paperwork and files. Outsourcing accounting cuts down on paperwork and late fees, and all data is kept in one digital place.
Financial projections and planning
CFOs can make detailed financial projections that show you how much money your business could potentially make because they can understand, interpret, and analyze your business’s expenses and profits.
With the financial information they give about your business, CFOs also help you manage your human resources. This is because they can determine how much your employees are worth to your business and help you figure out how much you need to spend to hire the best people.
CFOs can help you figure out how much you can spend on developing new products and which new features will add the most value to your line. But it goes even further than this. CFOs can also help you make your supply chain more efficient by changing the terms of your contracts with suppliers and vendors.
Outsourcing your CFO can help you get things done quickly. Because of their experience, they know where to start and how to get results without having to think about when to start. It is easier for you and your CFO to work together to make sure that your business goals are met quickly.
You will decide to leave your business at some point. You will need to do a lot of planning and preparation to make this change go as smoothly as possible. If you hire an outsourced CFO, he or she will help you come up with a plan that is centred on your goals. During this time of change, having a solid plan for your exit will give you peace of mind.
An outsourced CFO possesses all of the above features and regulates finance-related activities without wasting your time and money. So that you can efficiently create your business empire, leaving the finance in their hands.
On the lookout for a virtual CFO to escalate your business’s profitability? Reach out to the CFO Bridge today.