4 Important Services an Outsourced CFO Can Provide
The main duty of the chief financial officer (CFO) is to oversee the financial side of a business. However, not all small businesses can afford to hire an in-house CFO. It is, after all, an executive position and one that is not easy to fill. Luckily, small businesses have the option to outsource a CFO both on a full-time or a part-time basis. When outsourcing a CFO, it is important to make sure your company receives at least these 4 important services.
A chief financial officer (CFO) is only as good as their budget. If a company’s budget is not accurate, then it is likely that the business is either spending too much or not enough to succeed. To solve this issue, a CFO’s main duty is to come up with and implement a company budget that is in the best interest of all stakeholders in the business. In addition, each month, the CFO should go over the actual results and compare it to the budget that was forecasted. Any differences between the actual results and the budget should be explained.
2. Financial Analysis
With all the talk of budgets, it is easy to forget that the main purpose of a CFO is to provide analysis of both the overall financial health of the business and each department within the business. By doing this, the CFO can provide information that can be used to make better business decisions and can help to make the business more successful.
Even if a small business is not in need of an in-house CFO, it can benefit from hiring an outsourced CFO to provide financial analysis.
3. Cash Flow Management
Cash flow management, also known as cash flow forecasting, is the process of putting together a plan that ensures that a business has sufficient cash on hand to be able to cover its expenses.
Small businesses can benefit from the help of an outsourced CFO in this area. Not only can an outsourced CFO ensure that businesses have enough cash on hand for all their expenses and business growth, but they can also help to forecast potential stockouts that can happen and plan accordingly.
4. Short-Term and Long-Term Forecasting
Short-term and long-term forecasts are the next step after cash flow management. Small businesses love doing business, but they need to have a plan to ensure they have enough money to stay in business. Forecasting is a key part of that plan.
An outsourced CFO can help to forecast both short-term cash flow and long-term cash flow. This way, small businesses can ensure that they have enough cash on hand for the short-term as well as for when they need to invest in new equipment or new hires.
An outsourced CFO can help to provide a long-term forecast for small businesses to ensure that they have enough cash on hand for unexpected expenses and also for growth. These long-term forecasts will help small businesses to ensure that they are able to stay in business for the long term.
Having a CFO that provides these services can help small businesses to be more successful. By working with an outsourced CFO, small businesses can get a leg up on the competition and make sure they receive the services they need to be successful.
Outsource your business’s chief financial officer role with the help of CFO Strategies. CFO Strategies can offer the balance of managing the complex transactions but on a part-time basis, which can either be in-person, virtual, or a hybrid of the two. Get in touch with us today!