A Chief Financial Officer (CFO) is responsible for financial reporting and risk management; operational efficiency and strategy development. And if you are a self-made business owner, chances are you have the idea of how tedious it can be to look after your business finances.
Most small businesses don’t need a CFO full-time, but do require their skills and experience for a few hours each month. It is becoming more common for entrepreneurs to consider hiring an outsourced CFO on instances when you want an expert to manage your business's finances, but you don't need a six figure salary that goes with it.
Here are five benefits of utilizing an Outsourced or Fractional CFO:
The expert skills, knowledge, and experience that a CFO contributes to your business are probably one of the main benefits. An outsourced CFO will bring years of diverse financial experience to your business. It is important to find a CFO that has experience in your industry. This will ensure that the CFO can make a significant impact in your business, and you won't waste time teaching them how you do business before they can make impactful suggestions.
Outsourced CFOs can help you save money because you receive the same level of service that you would get if you had a CFO employee within your company at a fraction of the cost. There are different fee arrangements like flat fee or hourly that you can negotiate with your outsource CFO, but it certainly will be cheaper than hiring someone with these skills as a full time employee and having to pay benefits.
Regain Focus of Your Business
Your outsourced CFO services will save you time by covering all the financial matters for you without any hassle. You will have extra time to manage your business, your employees, and other business operations. You should schedule regular check-ins with your CFO to ensure you are receiving updates and informed about your businesses finances.
Outsourced CFOs are unbiased toward the decisions they make and honest about company finances, both of which are valuable to you and your company. Your CFO should be able to guide you on areas that need additional focus and attention and help you better analyze your business's financial results.
Outsourcing CFO services easily allow tax, law, and legal proceedings relating to your business to be checked and you’ll have peace of mind knowing that your business is always compliant with laws and regulations.
If you’re ready to take advantage of the benefits of outsourcing your CFO services, get in touch with Allison L. Reynolds, CPA PLLC today!