Does your company need outsourced CFO services? Do you need a chief financial officer but can’t afford to hire one full time? Or does it simply need someone to help see it through a special project or temporarily replace an executive who has fallen ill or left the organization? An outsourced CFO may be the solution.
I’ve been an outsourced CFO (sometimes referred to as an interim CFO) for many clients over the years to accomplish a variety of goals. My clients appreciate the cost efficiency of not staffing a full-time executive. Plus, their goals are generally reached more quickly. From my experience as an outsourced CFO in several different industries, I’ve outlined when you should consider an outsourced CFO and what skills that individual should have.
Outsourced CFO Services fill an immediate pressing need
Headhunting for a full-time CFO can be a long, arduous process. And hiring the wrong one can be disastrous and costly. Cut the risk by hiring a temporary CFO who is typically able to hit the ground running and adapt to your business’s specific needs.
Support a specific project
If you’re planning to build a new factory, introduce a product or service, or start a joint venture, you should consider outside council. An outsourced CFO is an excellent resource if you have questions going through a new process.
(Related: Hiring Internal Accounting Staff)
For example, if a second business location is being planned, the temporary executive can come up with financial outsourced CFO or controller forecasts of how the project will affect the company and its bottom line. That information can then be used to justify the undertaking’s cost to potential lenders or investors.
Provide financial planning and analysis
In order to make sound business decisions, you must rely on financial information from your accounting system. Your outsourced CFO should work with you to provide guidance for updates or the creation of income statement reports.
I have prepared many client presentations for banks and investors. I prepare financial statements that clearly reflect the industry and shed light on the key performance indicators. This will open doors for you as you grow your business.
Budgeting is another one of the most difficult tasks any company faces. A seasoned professional can develop a detailed annual budget with key metrics for implementation. Along with this, he or she can prepare monthly forecasts and compile a history of your company’s financial performance.
Your outsourced CFO should give you added depth and breadth in understanding the overall performance of your business and when all is said and done, he or she will exit your stage right after their performance is finished. My clients believe that the benefit comes from knowing they are making the smartest and soundest decisions for their business which puts them closer to achieving their goals.
Do you think your company could benefit from outsourced CFO services? Use the comments to let me know your thoughts.
Call me at our office for more information or to find out if you could benefit from this type of solution.
By Frank Hambalek, CPA Partner at WHH
Frank specializes in high-level consulting and financial reporting work with medium- to large-sized construction and real estate companies. With his talent in managing systems and people, he has served as an outsourced CFO for many clients. Other specialties include internal fraud prevention, GAAP standards, and the new leasing standards.
