Outsourcing various positions, including outsourcing CFO, has become an increasing trend in business. Why? Because, virtual or outsourced employees cut costs and provide flexibility – especially for slower business periods, while also fostering creativity and innovation.
Here’s why you should consider outsourcing your CFO.
1. Saves Money & Opens Investment Doors
Once you’ve determined that your business needs a CFO, research who you can hire within your budget? Do you elect to employ a less experienced person in-house and full-time or can you source a highly skilled and experienced CFO on a part-time basis? Outsourcing is certainly an option when budget is an issue. By outsourcing your CFO, you immediately save money by not having to pay a high salary. Any money your business saves can be reinvested in new products, services and other projects. Outsourcing can also free up cash flow and cash reserves.
Consider if other investments may actually provide more efficient ways to improve business and profitability or value.
To develop products, invest in core business functions and other creative projects, you need some flexibility with cash flow and resources. An outsourced CFO immediately opens up the avenue for such ventures by taking off the pressure of having to pay another salary.
In business we’re always evolving: growing, scaling back and expanding at all different times. Outsourcing the CFO’s function means you can adjust and adapt the scope of the services required as you need.
With greater flexibility, more energy is spent on creativity and driving innovation – that’s what you want to stay ahead of your competitors.
3. Wider Skillset
An outsourced CFO can, in fact, be more productive and work more efficiently with your organisation due to the external knowledge and experience they hold. They have a helicopter view of your business and can quickly spot areas that need greater attention. This expert attention will allow the company to focus on business expansion, without significant worry if it’s financially possible. They will act and offer their expertise impartially.
Whereas an in-house CFO will be limited to the experience and knowledge of your company – and potentially one or two previous organisations.
In our fast paced business environment an outsourced and highly skilled individual is excellent value for money. Their vast industry knowledge can work out to be more profitable for your company. Plus they have a big book of contacts.
4. CFO Efficiency
Overall a virtual CFO will streamline your business and have it functioning more efficiently. They will meet deadlines quickly, along with any other varieties of project demands. Because of their experience, the learning periods are shorter. They can action tasks immediately and very professionally.
An outsourced CFO also means that you can get back to business. Many small to medium businesses spend their time focusing on the financials when their efforts would be more profitable if they did what they do best. You can look to many successful businesses and individuals who will tell you to outsource what you don’t wish to do and what you’re not great at. Keep your vision in mind and think big picture, that’s when you’ll make profitable progress.
5. Big Ventures
When going through tough financial times, the virtual CFO eases the struggle. When significant changes have occurred in legislation and individual policies, your company is going through a merger or acquisition, or maybe you’re exploring the option of taking out a large loan, having an external CFO that can walk you through the process can be very supportive.
While there is an initial investment in setting your business up with an external CFO, this benefit and value outweigh keeping a CFO on salary. If you would like to talk to an experienced member of our team, to discuss your options, get in touch with us today!