Is it a good idea to outsource your CFO?
At some point in every growing business, there comes a time when a decision has to be made if there is a need to hire an expert to look after the financial side. However, outsourcing this role can be a better option.
Businesses that already employ a Chief Financial Officer (CFO) already know that people with the necessary skills and drive are hard to find. So, those who are in need of a new CFO should also consider the possibilities of outsourcing.
Do you need a CFO?
Finance and funding can be complex matters even for the smallest firms. For trading businesses which employ dozens of people, serve multiple clients, and rely on a detailed supply chain, just keeping track of the cash flow can be a big job. If the owner wants to focus on business development while staying on top of operational matters and client relations, he/she will need a reliable person to look after the finances.
Business funding is a multifaceted area which can drain a lot of time and energy and may be best left to a dedicated expert.
What is a good CFO?
A good CFO would find ways to minimize company cost and increase savings to improve company figures.
A good CFO could identify growth options and weigh the pros and cons. He/she makes decisive adjustments to the business, which ultimately transforms the company as whole.
Benefits of Outsourcing a CFO
Qualified CFOs are not easy to find, even for businesses willing to pay more. For a small business looking for a financial expert, the costs of recruiting and employing one will be costly. However, by choosing to outsource, they can benefit from the following:
Have a senior professional on a contracted or part-time basis for less than the cost of employing a less experienced candidate. This is beneficial for a relatively small company that needs quality advice rather than a full-time finance manager.
Outsourced CFOs handle a lot of businesses, have a lot of networks, and have experiences on all stages of the business. They are, therefore, well-placed to solve financial issues and help on business growth.
Have someone oversee the company with a fresh set of eyes. They will have new kinds of ideas to minimize cost and to fast-track growth.
For start-ups and fast-growing small businesses, outsourcing is a way of getting a senior finance expert on board quickly.