An in-house chief finance officer (CFO) can cost your company at least $350,000 each year. That’s a lot of money to spend on someone you may not need all the time.
If you only need a part-time CFO you may want to consider outsourcing the position. Below we’ll review the benefits of outsourcing the chief finance officer responsibilities.
1. Save Money and Increase Profits
When you outsource your CFO, you won’t be paying as much out of pocket. You won’t be paying someone a full-time wage with benefits. Moreover, you’ll save money on training costs as an outsourced CFO won’t need any training.
What’s more, you choose when you need the CFO and for how long.
The CFO will help your cash flow, as they know how to make your accounting systems more efficient and modern. This will free up more money that you can use for products and services.
When your CFO is outsourced, you can have your employees focus more on the company. They’ll have more time to spend working on projects and developing products. This will help your company become more profitable.
2. Save More Time
As the CFO takes on more duties, your employees will have more time to focus on their jobs. They’ll have more time to spend with customers. This will create more trust and loyalty with your customers.
On top of that, with more efficient and modern accounting systems, the work will get done faster. Your CFO will have the knowledge and know-how to operate the new systems.
You’ll get important financial information quicker. This will allow you to make business decisions that impact your company sooner.
3. Financial Functions and Risk Assessment
The outsourced CFO will be able to provide you with accurate financial information. Being an expert in their field, you won’t have to worry about incorrect financial statements.
As the CFO will know where your money is going, they’ll be able to detect any signs of fraud. Your money will go where it needs to go, and not in the hands of those that shouldn’t have it. Moreover, the CFO will be able to prevent/reduce financial errors and risks.
On top of that, they’ll be up to date on all current regulations, so you won’t have to worry about litigation issues.
4. New Perspective
An outsourced CFO will be looking at the business from the outside. The CFO will have a unique perspective of the company.
They won’t be looking at each part, but at the business as a whole. They may see things someone who has been working in the company can’t see.
They’ll have a better idea of your financial situation and be able to give you advice on the best next steps.
5. Establish Relationships and Negotiate with Financial Sources
The CFO can help your company develop relationships with lenders and investors. They’ll be able to get you the best rates. They’ll secure your lines of credit, working capital and any other payment options.
It’s Time to Outsource Your Chief Finance Officer Responsibilities
This article provided a snippet of the benefits you can receive from outsourcing. It’s time to decide whether it’s financially beneficial to you to outsource your CFO.
Review our blog to learn more about outsourcing chief finance officer responsibilities.