Whether small, medium, or big, operating a business comes with many opportunities and a set of complexities, including cash flow management & reporting, budgeting and forecasting, management, and meticulous financial reporting. Considering the challenges and complexities for startups and SMEs, it is beneficial to outsource CFO services than have an in-house CFO team in terms of cost, expertise, and efficiency.
A myth that exists is that you can only outsource your work to accountants or consultants, but the truth is that you can have a highly qualified C-level professional on board as a virtual CFO service team to help you out.
What does Outsourced CFO Services Offer?
These days, it’s common to see businesses bringing in people who have the requisite skills to analyze a business’s performance thoroughly, gauge the profitability & cash flow, and aid with future financial planning. These individuals are usually not on their payroll.
Here are the top 6 benefits that an outsourced CFO Service team can offer your business.
- They help you pave your way ahead: A CFO fills a vital role in crafting competitive strategy by bringing in his industry experience and a fresh perspective to the business. This helps analyze your business from an expert’s view and helps position your business.
The right CFO can help you break down your goals into quantifiable & measurable goals that will help your business grow, decide the KPIs, and set benchmarks to keep your growth on track.
The most critical factor in considering a Virtual CFO is that you can hire a well-qualified & trusted CFO at a fraction of the cost. Corporates can easily afford the financial & operational costs without having to incur the expense of paying the salary of a full-time financial expert & other employee benefits.
- Financial reporting accuracy
Businesses must maintain thorough financial records for both tax & financial analysis purposes. It is beneficial for businesses to outsource this to a highly-qualified professional CFO Service team, who have extensive knowledge and experience to help confirm the data accuracy and bring in the best practices of cash flow management, accounting procedures, & technology. Additionally, businesses also have someone to rely on to secure loans or raise funds from investors.
- Flags off suspicious activity
Occupational fraud is something that has seen a rise over the years. These losses can have a more significant impact on small & medium businesses than the others as smaller organizations tend to lack systems that could detect and prevent fraud internally. An outsourced CFO service team can be of great assistance in situations like these, which could help identify red flags of possible fraud and operational weaknesses.
- Is an asset for large projects
Outsourcing CFO services will be the most helpful as the team brings a wealth of knowledge & experience, having been in such situations before. They can help with budgeting, handling financial paperwork, and accounting system practices & implementation.
- Saves you time
Having a full-time CFO means that the designated person could get caught up in many internal financial affairs and lose track of helping the business to manage finances efficiently & effectively. Bringing in a virtual/ shared CFO could help keep in line with the company’s financial goals.
Want to hire a virtual CFO or outsource to India’s largest CFO Service provider? Please connect with us.
About Us: We are India’s largest shared CFO services provider with world-class finance talent of 50+. We have helped 350+ clients to make informed decisions from all over India.