What is an Outsourced CFO?

Let’s start with – what is a Chief Financial Officer (CFO)? The CFO is the person responsible for all the financial aspects of your company.

The CFO will oversee those responsible within your company for maintaining accurate and timely books and keeping up with tax implications. The CFO will also provide advice and guidance when it comes to financial objectives such as; budget building, plans for future growth, overall investment strategies, payment terms and the general financial health of your company.

An outsourced CFO will do all the above but instead of being an expensive part of your payroll as a corporate officer, they will contract to you on an hourly or subscription basis.

The outsourced CFO becomes a virtual member of the leadership team and looks to the future as well as reporting on the current company situation.

Why it is good to have an Outsourced CFO.

As touched on above a CFO employed full time by a company is a big payroll expense. For many new companies it is an expense they cannot afford when they are still in early growth days.

The nature of an outsourced CFO means you will be paying for the number of hours worked on a particular project and you will receive the benefits of an experienced financial leader with knowledge in many different areas of business finance. This allows your new company to access knowledge and expertise that perhaps you couldn’t afford on a full time basis.

When to look for an Outsourced CFO.

It is crucial for all companies to have professional financial advisors to guide business decisions in the right direction. It is particularly important when the company founders do not come from a financial background.

What are the advantages of an Outsourced CFO?

As opposed to an inside employee, an outsourced CFO will provide objective advice and information. Because they will also be working with other companies they can provide experienced knowledge achieved in other spheres of business.

Your company’s expenses will be much less with an outsourced CFO. This is an important part of affordable growth for your company in the early days.

Your new company could evolve and grow quickly and you will be able to adjust your needs accordingly with an outsourced CFO.

Will an Outsourced CFO save time?

When you consider that in the early days your company really has a need for expertise in budgeting, fundraising and forecasting, that would be well managed by an outsourced CFO experienced in new business.

Taking on a full time CFO would be time wasting and ineffective.

How do I know that the Outsourced CFO is right for my company?

When it comes to hiring an outsourced CFO the same criteria applies as if you were hiring a new employee. You want to be as sure as possible that they will fit your existing team and ideologies. That they understand what your business is about.

You will look for an outsourced CFO that has the relevant experience in the areas that you need at the time. For example, if you are looking to create more realistic budgets make sure you choose an outsourced CFO with a proven track record in this area.

Consider what your business is and look for an outsourced CFO who has experience in similar businesses.

Be sure in what financial areas you may require advice and communicate those clearly. An outsourced CFO will also offer advice in areas that you may not have considered and be prepared to take on new ideas. You may have problems that need solving and outcomes that you want to achieve. You could be looking for general guidance or specific analyses. Know what questions you will want to ask and what to look for.

Outsourced CFOs can come as a team or as a consultant. Again pricing here is a key factor. You will pay less for a consultant – but you might gain more in less time from a team of consultants who work together giving you the benefit of team effectiveness.

Obtaining the expertise of a Chief Financial Officer does not have to cost your new company a fortune. An outsourced CFO can grow with you as your company grows.

If you are considering taking on the services of an Outsourced CFO please contact us at QC Accountants. Our team of professionals can help you manage all financial aspects of your growing company.

Contact us on 07 5593 6060 – we are here to help you.