How Outsourced CFOs Integrate into Your Business

One of the greatest challenges of establishing a business is controlling your finances. While employing people to keep your records and file your taxes is one thing, having someone who can come up with creative but financially sound strategies for growing your business is another. Typically that would be a job for your CFO, but they are often out of a small business’ budget; hence the need for outsourcing CFOs.

 

What Outsourced CFOs Do

 

Outsourced CFOs are part-time members of your executive team who analyze your business through a financial lens and provide the ideal strategy you need to make decisions. They are responsible for a company’s administrative, financial, and risk management operations. Some of their other duties include:

 

Financial Infrastructure Development

An outsourced CFO can assist you in creating the financial framework required for expansion and scaling. That implies that they could take part in a wide range of tasks that maintain the efficiency of your business, such as putting procedures into operation for controlling your cash flow and tracking your key performance indicators.

 

Special Projects

When an organization lacks internal experience or desires a different viewpoint, many business owners use outsourced CFOs to oversee specific projects or to solve impromptu financial issues. For instance, you may frequently request an external CFO to analyze company financials and provide input on your short and long-term growth plans.

 

How Outsourced CFOs Integrate into Your Business

 

Develop budgets for the business

Budgeting may be complex, particularly for newly established businesses, without a base of success from previous years. To create budgets, CFOs collaborate with business owners to understand the company’s objectives and needs. In addition, outsourced CFOs frequently bring industry knowledge, allowing them to advise you on how to establish a working budget from scratch and make accurate projections of future costs, as well as the actions you should take to stay on track.

 

Accounting for software selection and implementation.

Outsourcing a CFO with a strong background in finance can help you set up internal controls and accounting procedures that affect all, directly or indirectly, operations. They can collaborate with business owners to incorporate cloud-based accounting software, which can automate tasks like payroll processing, bill payment, expenditure reporting, and inventory management. 

 

Overall financial strategy

Hiring an outsourced CFO could increase your earning potential and decrease the number of hours you are spending at work each day. The CFO will help you find new methods to accomplish more. Beyond the usual outsourced accounting, bookkeeping, and financial services, they provide financial analysis with additional value based on their expertise and knowledge of their sector.

 

Raising capital

An outsourced CFO can aid in streamlining the procedure for raising capital through their network of financiers. They ensure your current accounting and financials are favorable for discussions with potential investors or lenders and also do financial reports, statements, and documents for due diligence. They can also assist in analyzing the capital structure – how much financing you need and what debt to equity ratio is best for your business.

 

Enabling mergers and acquisitions

CFO outsourcing services are advantageous when organizing a merger or acquisition. These services often comprise forecasting, preliminary analysis and reporting, stability of the financial function, the compilation of important documentation, and guidance to key staff during the sales process.

 

Create financial projections

Financial projections allow businesses to analyze assumptions, view anticipated results, and make data-driven decisions. Before the company even starts operations, outsourced CFOs can work with you to develop financial projections. Using estimates, company owners can then create business models, marketing plans, and operational procedures.

 

Hire a Professional CFO to Elevate Your Business

 

If you are looking to take your business to the next level by outsourcing a CFO, then your best bet is Taurus CPA. Our business provides outsourced CFO services with the support of years of expertise. Contact us at 410-465-4600 to set up a consultation if you’re establishing a business and learn how an outsourced CFO may support your strategy.