Have You Considered An Outsourced CFO?All businesses need financial consulting, however not every business can afford to hire a full-time Chief Financial Officer (CFO). As a result, small and medium-sized businesses are increasingly turning to expert outsourced CFO services. To better understand how a Chief Financial Officer can benefit an organization, one has to have an understanding of what a CFO does. As a financial expert, a CFO often takes care of duties that relate to compliance, risk management, capital structure, performance evaluations and economic strategy. They must be able to plan well, communicate effectively and forecast for the financial benefit of the organization. They can introduce guidance that reveals cost-saving alternatives, provide financial expertise that enables the creation of long-term planning and locate effective ways to aid growth. An outsourced interim CFO does the same. One of the most critical functions in a company - especially one transitioning through one of the growth phases - is that of the financial officer. A Chief Financial Officer (CFO) typically focuses on how efficiently a business is operating. While some business owners view this function as a reporting function - one where the CFO merely is a score keeper of how well the business already has performed, that's just where CFO duties begin. Small organizations that lack a formal executive in this department can benefit greatly from the expertise of an outsourced firm who can lead them through unfamiliar financial waters. An outsourced interim CFO can minimize risk and introduce options for financial efficiency that an organization may have been previously unaware of. Larger organizations may consider taking on an outsourced interim CFO due to an unexpected employment change or corporate downsizing. An outsourced interim CFO can be an important factor in ensuring things continues to run smoothly. CFOs can have a positive effect on the outcome of major business decisions. For instance, companies facing reorganizations or mergers need to have access to real numbers associated with these events. They also need to know how to leverage available resources with company debt. Skilled CFOs handle these issues regularly and can bring much-needed expertise to company owners and executives as they make short- and long-term decisions. An outsource CFO can also help you discourage employee dishonesty. Many business owners have been shocked to learn how much stealing can go on within a company. There are many different types of theft such as; theft of money, customer lists, inventory and more. A part-time CFO can help discourage theft by establishing control and keeping you more aware of what going on inside your company. While hiring a CFO for a short amount of time may get you past a cash flow crunch, help secure a much-needed loan or initiate systems that increase productivity, experts agree that to get the most out of your investment, you should commit to your outsourced CFO arrangement for at least a year. An experienced CFO often can impact your business in less time than an average work day or approximately eight hours. In conclusion, outsourcing the Chief Financial Officer position makes great financial sense for any size organization. An outsourced interim CFO can provide a level of financial expertise to an organization that keeps them in compliance with everything from federal and state tax regulations to everyday accounting.
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