The way we conduct business has changed significantly in recent years, and companies are becoming more agile to keep up with industry shifts. Small businesses, startups, and businesses undergoing changes may find it difficult to employ a full-time CFO. Executive salaries are much higher and the hiring process can take weeks or months. An outsourced CFO may be just what your company needs.
An outsourced CFO can save your organization time and money while still receiving the same level of support. Experienced financial professionals work with your existing team, and you only pay for the services and time you need. But what exactly can an outsourced CFO do for your business? Keep reading for the top services provided by outsourced CFOs for businesses of all sizes.
1. Implement Financial Systems – For startups or companies in a state of flux, there might not seem like enough hours in the day to implement financial systems. Selecting and setting up financial software and in-house systems takes considerable time and effort from your accounting team. If your team is already stretched thin, this process is cast to the wayside until the disorganization piles up.
An outsourced CFO can provide expertise on the various systems available or help you maximize efficiency with your current solution. A complete analysis of your current financial systems from an outside set of eyes can help identify gaps in your processes, predict needs for the future, and make changes as required.
2. Financial Strategy Development – Creating a financial strategy is a complex and ongoing process. A freelance CFO can step in to help develop a financial strategy designed for your business. Your accounting and bookkeeping teams can keep their focus on maintaining your current business metrics and goals. With considerable experience in your industry, this professional can provide guidance on developing strategies for both long and short-term financial goals.
3. Train Accounting Team – Whether you have a team of new accounting professionals or seasoned pros, an outsourced CFO can make your team more efficient. New teams can benefit from the knowledge and industry experience an executive-level professional brings. For teams with more experience, a CFO can provide a fresh perspective and new techniques to become more effective. With extra support, your team can learn and grow while maintaining their daily responsibilities.
4. Financial Forecasting – Financial forecasts can help accelerate your company’s growth and keep you moving in the right direction. Unfortunately, developing and maintaining financial forecasts for the short and long term takes up a lot of your team’s time. Bringing in a CFO to create financial forecasts can provide your business with a guide to inform future decisions and reach goals faster.
They have the time, resources, and knowledge to evaluate your current position in the market and determine the future capabilities of your organization. A comprehensive understanding of financial trends and developing a competitive analysis also contribute to the quality of financial forecasts.
5. Budgeting – A budget provides a step-by-step guide for reaching your business goals. Your freelance CFO can provide a budget that manages your short-term needs and works in conjunction with your longer term financial forecasts. Whether you need to shift priorities, manage a crisis, or grow your business, a budget can keep you on track.
6. Guide Financial Reports – Your executive team, board, or other stakeholders rely on the financial reports provided by your company. It is crucial that these reports are an accurate reflection of your business, and a CFO can help prepare and interpret financial reports. You can utilize an outsourced CFO to analyze your current financial reports and provide guidance for improvements. You and the rest of your leadership team will have a clear idea of your company’s year and how it impacts the future. The insight provided by a skilled CFO can assist with all future decisions.
7. Assist with Mergers or Major Events – If you are preparing for a merger or acquisition, a CFO can help you navigate the waters. Major events, including selling assets or taking your business public, require considerable time and effort on your team’s part. An outsourced CFO can analyze potential opportunities, maintain stable financial systems, and prepare all necessary documentation to guide you and your team through the process.
8. Attract Potential Investors – As startups raise capital or businesses seek investments to grow, a CFO can assist with the endeavor. These professionals have a vast network of contacts that they can introduce you to and facilitate conversations within your industry. They can also help prepare financial reports and documentation needed for investors.
You can utilize a freelance CFO to help represent your company when speaking to potential investors and boost your reputation. With their experience, you can determine how much capital your business needs and the right method of financing to search for.
9. Reevaluate Capital Structure – Creating budgets and setting goals is not enough. You have to evaluate your goals and structure on a regular basis to stay efficient. You can regularly employ the services of an outsourced CFO to evaluate your capital structure after each accounting period. They can provide guidance on the next year’s finances and what is necessary to achieve your goals.
10. Manage Cash Flow – Improved liquidity is a common goal for businesses. Your outsourced CFO can analyze cash flow statements and identify potential issues with cash flow management. With years of experience on their side, they are the best resource for suggestions to improve cash flow, including places to cut. If cutting costs is necessary for your business, it can be difficult to remain impartial, but a freelance CFO provides an outside look at your cash flow.
11. Serve as Interim CFO – If you are in the process of hiring a new CFO, a freelance professional can assist with the transition. In their temporary role, your outsourced CFO can manage the accounting team, report to executives, and assist with daily needs. They can also help vet applicants and interview candidates, offering their perspective on experience and industry knowledge.
Outsourced CFO Services from K-38 Consulting – Finding the right outsourced CFO can seem like a monumental task, but agencies like K-38 Consulting make it easy. You are quickly paired with the right CFO for your business, industry, and specific needs because K-38 Consulting maintains an expansive list of highly qualified financial professionals. You can rest assured knowing you are getting top-notch services at a fraction of the price for a full-time CFO.