CFO services can take your business to the next level, helping you reach 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 knowledge and experience without having to commit your resources to a full-time CFO.
If you’re 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 price 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 that much support one month, you don’t have to pay.
In addition to the savings of a full-time salary, you also don’t have to provide benefits or other incentives. Your company does not pay your part-time CFO a bonus, and you do not have to provide fringe 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. They provide budgeting advice and mentorship.
Small business owners or entrepreneurs are experts in their field, and that field might not be accounting. You can ensure that your business is financially sound by entrusting your budgeting needs to a part-time CFO. Such services can help you stick to your budget and keep you up to date on all aspects of your business finances.
Your part-time CFO can also provide guidance to you and your team. Whether you need help training your own finance team or just want to learn the rules yourself, you can hire the services of CFOs to help you.
3. You will receive a strategic analysis.
A CFO can do much more than help with your company’s finances. Your part-time resource can help with goal setting and strategy development, creating milestones for financial and non-financial goals alike. The strategic analysis, such as risks or threats, provided by such services can be essential to your business, differentiating you from the competition.
4. Your 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 provide analysis and explanations in a language that everyone on your team can understand. Such a person can not only communicate directly with you, but can also provide crucial information for your investors, stakeholders and team.
5. Outsourced CFOs have a broader range of experience.
Your part-time CFO is constantly learning and developing their own skill set. They are likely to work with various companies in various industries while servicing 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 that their business is going through a 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 help guide you through the difficult period, providing tips and advice to help cut costs, improve cash flow, rework budgets and raise funds. With a part-time CFO, you won’t have to spend your precious resources on a full-time employee during a stormy season.
7. Part-time CFOs can set up information systems.
Whether you use the services of a part-time CFO on an ongoing basis or for a limited period of time, they can help you set up reporting systems 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 on how to manage your business finances and communicate your metrics to key stakeholders. They can also guide your team, helping them create the best reports for your organization. Using a part-time CFO, even for a short time, can provide lasting benefits to your bottom line.
8. They provide good advice for 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 feel alone with the burdens they carry. Your part-time CFO can serve as a personal sounding board, mentor, or advisor. With their years of experience, they can provide valuable insights on the way forward and act as an outside pair of eyes.
9. You can increase your business network.
Your outsourced CFO has worked with many clients and has served various industries throughout his career. Along the way, they’ve likely made some impressive contacts, building a network of professionals and business leaders. Your part-time CFO can help connect you with the right people, providing support for every aspect of your business. They can also enlist the help of other CFOs if you are faced with a unique challenge or something outside of their expertise.
10. Part-time CFO services are flexible.
With CFO services, you are not entering into a long-term commitment. You have the flexibility to decide when you need assistance 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 as well, and your outsourced CFO can meet those changes with you.
11. You can focus on your business.
If finances aren’t 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 knowledge, you can rely on an experienced CFO. You can also decide what roles your part-time CFO will take on, including meeting with investors, managing stakeholder relationships, and training your team. With more open hours, you can focus on growing your business.