Is CFO Outsourcing Right for Your Business?

For a small business, one of the challenges to survival includes managing a competitive environment together with focusing on the business’ growth prospects. The burden of running the company along with ensuring you are doing the right things to help growth can take a toll on the key area – business financials. The end result could be anything from ill-managed client needs to late deliverables to loss of business; each of which can independently lead to depletion of funds and red flags in the company’s finances. For business growth and survival, you need two key elements: well-managed financials and the ability to retain your competitive edge. Both of these are CFO functions. However, since a small business operates on a restricted budget, hiring a CFO can be prohibitive.

Outsource the CFO function

Instead of hiring a full-time, in-house CFO, you can choose to outsource your needs to a part-time CFO. An outsourcing arrangement helps you:

• Save money on hiring costs
• Save money on training costs, etc.
• Access professional insights
• Implement professional inputs
• Create hassle-free operations

Benefiting from outsourced CFO services

A CFO will bring a focused approach to your business financials. Most often, there are four major components to business financials. These include cash flow, bookkeeping and accounting, managing revenue, and operations.

Further, when you outsource the CFO functions, you can choose to have the CFO resource work on your needs, together with any existing resources you may have. Some of the ways in which outsourcing can help your business include:

• Proactively streamline and drive internal business cash flow by managing working capital and improving profitability
• Streamline business accounting and ensure that bookkeeping is done in the manner it is required for year-end financials and tax time
• Establish processes that will manage business profits better
• Develop, implement and maintain processes that ensure consistently accurate accounting
• Develop forecasting tools to help with planning and analysis for the business

Advisory and strategic role

When your accounting and bookkeeping are in order, your business financials can be assessed without any major problems. Accurate accounting also reflects the financial health of the business. However, when you outsource CFO services, you ideally get value beyond financials of the business. These include:

• Providing operational insights through key performance indicators and reports
• Improving or implementing a system of communication between key elements concerning the business, such as bankers, advisory board, CPAs, etc.
• Contributing to activities related to revenue-generation, such as raising capital, extending channelized support to marketing efforts, coordinating with decision making members on strategy, etc.
• Participating in and assisting with goal setting, particularly measurable and well-defined goals
• Identifying barriers to growth and working out strategies and operations to remove them; identifying business growth drivers

At Analytix Solutions, our CFO will work closely with you to customize financial solutions for your business. Our solutions are cost-effective and help increase your business profitability measurably. Call us at 781.503.9002 or send us an email at sales@analytix.com and we will contact you.

Analytix Editorial Team