“Those who have knowledge of money make money their slave, but those who do not have knowledge of money becomes a slave to it.”
― Prince el fati
An Outsourced CFO is a financial expert who works on a part-time or project basis to help with financial strategy. An Outsourced CFO provides high-level financial strategy, system analysis and design, and operational optimizations.
Here are some of the most efficient services an Outsourced CFO can bring to your table.
Financial reports, such as balance sheets, profit and loss statements, and income statements, can tell a business a lot about its financial health. Using these data, you can see if your expansion strategy is on track. This is where a chief financial officer outsourcing may help. They should be able to read these reports and give you insightful information about the company’s financial standing because they have the knowledge and experience to do so.
Headcount is the most important HR task and is often a startup’s highest cost. An outsourced CFO can work with the HR manager to track how changes to the team affect your ability to hit budgeted numbers and, if necessary, suggest ways to cut staffing costs. They can also advise on making a competitive compensation package that is still a good deal for the business.
The financial health of your company may be monitored more closely with the use of a budget. In this case, your outsourced CFO should be on top of things. Making a detailed and realistic budget is the best way to monitor your company’s spending and forecast future revenue. With this budgeting, you may better prepare for the future, both in the near and distant future. Ask CFOs about the kind of budgeting services they offer and the level of assistance they can give.
An outsourced CFO should be willing to work with you and your team and offer training to help you understand how finance works and what it means for your business. Remember that understanding is the key to real change. And the way to get there is to train. Start by getting better at reporting and making predictions, bookkeeping and doing your homework, and cash flow management.
By ensuring that your outsourced CFO has experience with tax compliance, you can worry about one less thing and focus on what you do best, like running your business and talking to customers. It also gives you peace of mind because your books will be in order if you are audited.
Look for an outsourced CFO who can show you what they can do and how they can help you model different futures and situations. It emphasizes business model uncertainties and friction areas. There’s hope. These skills enable an outsourced CFO to plan for best-case situations via scenario modelling (like favourable market conditions). Your teams will then think more creatively.
Facilitating Mergers and Acquisitions
Whether your deal is a merger, an acquisition, or a partial, public, entity, or asset sale, the following CFO outsourcing services could be helpful:
- preliminary report and analysis
- predicting how to keep finances stable
- guiding key team members through the sales process and putting together the right paperwork
Getting money from investors is usually a very stressful process for a business, but an outsourced CFO can help the process go more smoothly. A hired CFO usually has a network of other financiers with whom they can connect you.
From a financial point of view, the CFO should look for risks that could cost the business money. By doing this, you can ensure that contracts put the company at a manageable risk. From a business point of view, they should also figure out if the contract terms are in the startup’s best interest. They may also suggest ways to make contracts more profitable. Customer contract reviews need a CFO who knows your industry and customer base well and has experience in both. Make sure that they do!
An outsourced CFO should look at your past financial results to determine how your business will do in the months and years. They’ll predict costs and income for every part of your business, so you can see how your sales costs will increase or how many new employees you’ll need to meet your income goals.
Interim CFO services
If your company is going through a change, has a problem, or is looking for a full-time CFO, an interim CFO can help your organisation. Many companies also hire a part-time CFO before they need to hire a full-time CFO. In these situations, an outsourced CFO can not only help your company grow by providing CFO services and strategies as needed, but they can also help your company hire and train a full-time CFO.
Hiring a full-time CFO can be expensive, so outsourced CFOs are the next best thing for startups. An outsourced CFO can serve as a mentor and financial guide to you and your business.
Looking for an expert CFO to drive your business closer to its financial goals? Contact CFO Bridge today.