CFO services can take your business to the next level, helping you achieve your goals much sooner. While larger corporations can afford a full-time CFO and accounting team, small businesses need to allocate their budget wisely. Your organization can benefit from years of financial expertise and experience without having to dedicate your resources to a full-time CFO.
If you are looking for advice or guidance for your business or need help getting through a period of crisis, an outsourced CFO could be your answer. Read on for 11 reasons why you should hire part-time CFO services.
1. Part-time CFOs are more profitable.
With outsourced CFO services, you only pay for the services you need. You can budget for your CFO services exactly because you pay by the hour. Your business may 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 don’t need as much support for a month, you don’t have to pay.
In addition to the savings from a full-time salary, you also don’t need to provide benefits or other incentives. Your part-time CFO does not receive a bonus from your company and you do not have to provide additional benefits to retain an employee. You can also save yourself the time and headache of hiring a new employee by contacting a company that provides such services.
2. Provide budgeting advice and tutoring.
Small business owners or entrepreneurs are experts in their field, and that field might not be accounting. You can ensure your business is financially sound by relying on a part-time CFO with your budgeting needs. Such services can help you maintain your budget and keep you up to date on all financial aspects of your business.
Your part-time CFO can also provide advice for you and your team. Whether you need help training your own finance team or just want to teach yourself, you can hire the services of a CFO to assist you.
3. You will receive strategic analysis.
A CFO can do much more than help with the finances of your company. Your part-time resource can assist you with goal setting and strategy development, creating milestones for both financial and non-financial goals. The strategic analysis, such as risks or threats, that these services provide can be essential for your business, distinguishing it from the competition.
4. Their advice and guidance are easy to understand.
You don’t 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 broader range of clients. They are used to providing analysis and explanations in a language that all members of their team can understand. This person can not only communicate directly with you, but can also provide crucial information for your investors, stakeholders, and team.
5. Outsourced CFOs have more extensive experience.
Your part-time CFO is constantly learning and developing his own skill set. They are likely to work with multiple companies in various industries while serving your business. This vast experience can greatly benefit your organization, as your outsourced CFO shares insights into what makes other organizations successful.
6. You can receive support for crisis management.
Nobody wants to think that their business is going through a time of crisis, but big losses or setbacks do happen. Instead of panicking during that time, you can entrust your business to an experienced CFO. Your Outsourced CFO can guide you through the difficult period, providing tips and advice to help reduce costs, improve cash flow, rework budgets, and raise funds. With a part-time CFO, you won’t have to spend your valuable resources on a full-time employee during a stormy season.
7. Part-time CFOs may establish reporting systems.
Whether you use the services of a CFO on a part-time basis or for a limited period of time, they can help you establish reporting systems that you can use for years to come. They have access to the best 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 company’s finances and communicate 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, even for a short time, can provide long-lasting benefits to your bottom line.
8. They provide good advice to business leaders.
Sometimes you just need a soundboard. Whether you’re a seasoned professional or starting your first business, it can be a stressful job. Entrepreneurs and business leaders are under immense pressure and often 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 external pair of eyes.
9. You can increase your business network.
Your Outsourced CFO has worked with many clients and has worked in various industries throughout his career. Along the way, they’ve likely made some impressive connections, creating a network of professionals and business leaders. Your part-time CFO can help you connect with the right people, providing support for all aspects of your business. They can also rely on the help of other CFOs if you are faced with a unique challenge or something outside of your expertise.
10. Part-time CFO services are flexible.
With CFO services, you are not making a long-term commitment. You have the flexibility to decide when you need help and what kind of support you want for your business. The role and functions of your part-time CFO are completely under your control and you can change them if necessary. As your business grows, your needs are likely to change too, and your outsourced CFO can meet those changes with you.
11. You can focus on your business.
If finances 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 achieve a certain level of financial literacy, you can rely on an experienced CFO. You can also decide what roles your part-time CFO takes on, including meeting with investors, managing stakeholder relationships, and training your team. With more open hours, you can focus on growing your business.