The global outsourcing market is worth an estimated $85.6 billion. Outsourcing is a great way to cut business costs while getting services you need. But did you know you can outsource the duties of your chief financial officer (CFO)?
Outsourced CFO services can give your business a competitive edge. But what does an outsourced CFO do? Here are the five most common (and most important) outsourced CFO services.
1. Creating a Financial Strategy
No surprises here: your chief financial officer will help with your financial strategy. But this isn’t only about your records. Your CFO will create a strategy for the future of your company.
CFOs are experts in planning long term. They use your current finances and your future goals to create a plan that will get you there. Even small businesses won’t last long without a proper financial strategy.
Creating a financial forecast is one of the commonly outsourced CFO services. But the forecast isn’t only for the distant future: they can forecast short term and long term.
This is an effective road map that will get you where you want your business to be. The shorter forecasts are the stops along the way that’ll keep you on track. Your CFO will look at your company’s capabilities and the industry landscape to get you there.
You need to know where your money is coming from and going to, and nothing helps with that more than a budget. Much shorter term than a forecast, a budget plans out daily expenses of your business.
Your CFO will also help you keep track of where you are in the budget they create. So not only do they put this plan into place, but they also make sure you’re sticking to it.
4. Interpreting Financial Reports
When you send your financial reports to your outsourced CFO, they’ll thoroughly interpret it. They’ll synthesize the information from your financial reports and give you the highlights you need. Then, you’ll get a chance to ask them about various trends and create a strategic plan for change.
Create a better understanding of your current and future position. And it will provide information that can help you make important business decisions.
5. Cutting Costs
All businesses fall on hard times. But cutting costs can be difficult, and an in-house team might be biased in where they make those cuts. Using an outsourced CFO can make a big difference.
They can use their extensive knowledge of the industry to find excessive spending. They won’t have particular interest over certain teams or initiatives, it’s completely objective. They’ll be able to direct your funds towards driving growth and away from money sinks.
Top Outsourced CFO Services: What Your Business Needs
CFO salaries can be hundreds of thousands of dollars. But you can hire outsourced CFO services for a fraction of the cost and get the same amount of quality!
Consider The Accfin Group for all your CFO needs. Read all about our outsourced CFO services here.