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Monday, December 14, 2015

Benefits of an outsourced CFO for your business

Outsource Chief Financial Officer
Objectivity is a key benefit of outsourcing financial management
By Steve

The chief financial officer (CFO) of a company is an extremely important role. These professionals are responsible for essentially every financial aspect of the business each day. They must dig deep into the company's finances to ensure it succeeds. Because of the various roles and importance of the CFO, a growing number of companies are choose to outsource CFO services. Regardless of the size of your business, there are several benefits to outsourcing CFO services. The following information provides insight into some of the top benefits of outsourcing CFO services. 

Eliminate headaches

When you started your business, you never imagined of dealing with the headaches of juggling financial and accounting issues. When these complex issues are coupled with the normal day to day business operations, it can quickly become too much. In most instances, people start businesses because they want to focus on what they do best, and the financial aspects may not be one of those areas. However, outsourcing CFO services to a virtual CFO allows you to focus on growing the business and doing what you enjoy most, while leaving the complex accounting and financials to an experienced professional. 

Cheaper alternative to a full-time CFO

As one of the highest paid businesses professional in the industry, CFOs are almost guaranteed a minimum salary of $218,750 every year according to the Entrepreneur. Is your business ready to take on a full time employee at this rate? If not, choosing a virtual CFO may be the best and only solution. In the end, it will save you thousands of dollars and ensure your business is operating as efficiently as possible.

Wide range of services

Although every business will someday need financial consulting, not every business can actually afford a full-time CFO. As a result, virtual CFOs are the ideal solution for a growing number of businesses. Virtual CFOs are extremely valuable for special situations, such as assisting the business secure a loan and helping the brand make it through cash flow shortages. At the same time, virtual CFOs provide a wide range of financial services, such as: 
  • Profitability analysis
  • Budgeting
  • Payroll processing
  • Managing financial documents
  • Accounting system implementation and design
  • Paying bills 
  • Cashflow forecasting 

Save time

Most small businesses do not have a dedicated CFO. Instead, they have a single person in the business that performs several different roles, including financial management. However, when someone other than a dedicated CFO is responsible for managing financial matters, this individual has significantly less time to focus on other things in the business that are critical. Outsourcing to a virtual CFO will free up this individual's valuable time, so they can pay more attention to the critical tasks of the business, instead of trudging through financial matters. 

Reduced risk of fraud and better controls

As previously mentioned, it can cause serious problems anytime someone inside of the business takes on multiple roles. One of the biggest problems is fraud and theft. On the other hand, when someone outside of the firm is handling the finances, fraud and theft issues are significantly less common. Having a virtual CFR provides a level of objectivity that most business owners do not have. It provides an appropriate level of internal controls because the virtual CFO has no ulterior motives. 

About the author: Steve trained as a CPA and has over 30 years of accounting, financial and operational management experience. He graduated from the University of Texas at Austin, Magna Cum Laude, with a BBA in Accounting. He founded Mindful Business Solutions, Inc. to help businesses with their finances.

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