Outsourcing has been around for decades. It began as a way for manufacturing companies to save on less-than-essential processes. It worked so well for them that more and more cost-conscious businesses started outsourcing their non-core business procedures.
Today, outsourcing isn’t just for manufacturing companies and it isn’t only about cost savings. It’s a strategic tool that can drive efficiency and increase competitiveness. Financial functions are among the most commonly outsourced business operations. You may be familiar with outsourced bookkeeping and payroll services. But many small and medium sized businesses are also turning to outsourced CFO services to handle senior finance tasks.
So, what is an outsourced CFO and what do they do?
An outsourced CFO is a financial expert with considerable experience in high-level corporate financial roles. They’ve often worked as CFOs for multiple companies, across a variety of industries, and at varying stages of growth. An outsourced CFO provides the same high-level financial strategy services as a full time CFO on a less-than-full-time schedule.
Here are just a few of the services an outsourced CFO can provide:
- Reviewing and interpreting financial data to provide insight and guidance.
- Managing and providing financial direction for a company’s controller or bookkeeper.
- Managing financial planning, records, and reporting to calculate risk.
- Providing guidance on how to control expenditures and acquire capital.
- Helping establish budgets that align with company’s growth plans.
Now that you have a better idea of what an outsourced or virtual CFO is and does, the next logical question is: “is this the right solution for my company?”
Every business owner has good intentions when it comes to managing the finances of their company. After all, sound financial planning and management is at the heart of every successful business. But if your business is growing, changing or profits are decreasing at a rapid pace then outsourcing CFO functionsmight be something to consider.
Contact me to explore your options.