11 Reasons Why Your Company Needs CFO Services
A part-time CFO can take your business to the next level, helping you achieve your goals much sooner. While larger corporations may be able to afford a full-time CFO and accounting team, small businesses must allocate their budget wisely. Your organization can benefit from years of experience and financial expertise without having to commit your resources to a full-time CFO.
If you are looking for advice or guidance for your business or you need help getting through a crisis period, an outsourced CFO might be your answer. Keep reading for 11 reasons why you should hire a part-time CFO.
1. Part-time CFOs are more cost efficient.
With an outsourced CFO, you only pay for the services you need. You can budget your CFO services exactly because you pay by the hour. Your business likely does not require the same level of support every month. Your part-time CFO works and bills you when you need advice or assistance. If you do not need as much support one month, you do not have to pay.
In addition to the savings of a full-time salary, you also do not have to provide benefits or other incentives. Your part-time CFO does not get paid a bonus by your company, and you do not have to provide extra perks to retain an employee. You can also save yourself the time and headache of hiring a new employee if you contract through a CFO services agency or firm.
2. They provide budgeting advice and mentoring.
Small business owners or entrepreneurs are experts in their field, and that field might not be accounting. You can ensure your business is financially solid by trusting a part-time CFO with your budgeting needs. Outsourced CFO services can help maintain your budget and keep you updated on every aspect of the financials for your business.
Your part-time CFO can also provide mentoring for you and your team. Whether you need help training your own financial team or you just want to learn the ropes for yourself, you can contract CFO services to help.
3. You will receive strategic analysis.
A CFO can do so much more than help with the finances for your company. Your part-time CFO can assist with goal setting and strategy development, creating milestones for financial goals and non-financial goals alike. The strategic analysis, such as risks or threats, provided by outsourced CFO services can be essential for your business, setting you apart from the competition.
4. Their advice and guidance are easy to understand.
You do not have to be a financial expert to understand your CFO. While full-time CFOs tend to get bogged down in industry and company jargon, a part-time CFO serves a wider range of clients. They are used to providing analyses and explanations in a language that everyone on your team can understand. Not only can your part-time CFO communicate directly with you, they can also provide crucial information for your investors, stakeholders, and team.
5. Outsourced CFOs have a wider range of experience.
Your part-time CFO is constantly learning and growing their own set of skills. They are likely working with multiple companies across various industries while serving your business. This wide range of experience can greatly benefit your organization as your outsourced CFO shares insights into what makes other organizations successful.
6. You can receive crisis management support.
Nobody wants to think about their business experiencing a time of crisis, but major losses or setbacks do happen. Instead of panicking during that time, you can trust your business with an experienced CFO. Your outsourced CFO can help guide you through the difficult period, providing advice and suggestions to help cut costs, improve cashflow, rework budgets, and raise funds. With a part-time CFO, you will not have to spend your precious resources on a full-time employee during a stormy season.
7. Part-time CFOs can establish reporting systems.
Whether you utilize the services of a part-time CFO for an ongoing basis or a limited period, they can help establish reporting systems that you can use for years to come. They have access to the top financial and reporting systems and can help determine which metrics and tools work best for your organization.
Your CFO can provide insight into managing your business’ financials and communicating your metrics to key stakeholders. They can also guide your team, helping them create the best reports for your organization. Utilizing a part-time CFO for even a short period can provide lasting benefits for your bottom line.
8. They provide sound advice for business leaders.
Sometimes you just need a sounding board. Whether you are a seasoned pro or starting your first business, it can be stressful work. Entrepreneurs and business leaders are under immense pressure and often feel alone with the burdens they carry. Your part-time CFO can serve as a sounding board, mentor, or personal advisor. With their years of experience, they can provide valuable insight into the road ahead and act as an outside set of eyes.
9. You can increase your business network.
Your outsourced CFO has worked with many clients and served various industries throughout their career. Along the way, they have likely picked up some impressive contacts, building a network or professionals and business leaders. Your part-time CFO can help connect you to the right people, providing support for every aspect of your business. They can also lean on the assistance of other CFOs if you are facing a unique challenge or something outside of their experience.
10. Part-time CFO services are flexible.
With CFO services, you are not entering a long-term commitment. You have the flexibility to decide when you need assistance and what type of support you want for your business. The role and functions of your part-time CFO are entirely within your control, and you can alter them if needed. As your business grows, your needs are likely to change as well, and your outsourced CFO can meet those changes with you.
11. You can focus on your business.
If financials are not your thing, your part-time CFO can free up your time to focus on what you do best. Instead of spending countless hours trying to attain a certain level of financial knowledge, you can trust an experienced CFO. You can also decide which roles your part-time CFO takes on, including meeting with investors, managing stakeholder relations, and providing training for your team. With a more open schedule, you can keep your focus on growing your business.