What is an Outsourced CFO & What Do They Do?

An outsourced CFO can come take that work off your plate and help you to make your business the best it can be. If you think your company would be a good fit for outsourced CFO services but want to learn more, we’d love to talk. No obligations, no pressure, just a short conversation to learn more about your challenges and goals and what your best path forward will be.

Manage the risk factors in your company downwards with a strong control environment, risk registers and more. Recognizing Cash Flow Problems & How to Solve Them We know that the majority of small businesses fail within the first five years, but a study by Jessie Hagen, previously with U.S. Deciding whether and when to sell your business is a significant and complex decision that should not be undertaken lightly.

Advantages of an Outsourced CFO

Bringing in a finance expert doesn’t have to mean hiring an expensive corporate officer. As your company grows, consider leveraging an outsourced cfo to get the guidance you need, at a price your company can afford. Outsourced CFOs have considerable experience in high-level corporate financial roles. They’ve often worked as CFOs for a variety of public and private companies at many stages of growth and in multiple industries. As with any outsourcing or consulting relationship, you want to make sure you’ll receive the level of service and attention you’re paying for. Asking how many clients a potential CFO has, along with how much time they spend with each, is a good measure of their workload.

• Naturally, having a CFO to consistently work with can be a big relief.
• Recognizing Cash Flow Problems & How to Solve Them We know that the majority of small businesses fail within the first five years, but a study by Jessie Hagen, previously with U.S.
• We seek to move the needle in your company by providing strategic services that will accelerate growth, increase profitability, optimize operations, or facilitate more successful transaction.
• Preferred CFO’s outsourced CFOs & controllers have decades of experience developing successful financial strategies.
• Most outsourced CFO services (sometimes also called fractional CFO or virtual CFO services) are available at hourly or subscription rates.
• Therefore, they might oversee your entire accounting and finance department and manage your human resources team while also handling special projects.
• Ink Factory Studio is a “small but mighty women-owned business,” as described by chief operating officer Lindsay Wilson.

Start with a very specific search and widen it if you don’t find what you’re looking for. Keep in mind that there may be CFO service providers with expertise in your industry which may not be obvious from a Google search. Get the peace of mind that comes from partnering with our experienced finance team.

Outsourcing Saves Money

But you still may have a one-time or unusual finance issue to solve, and outsourced help can step in. Equally, you may want help to set up your “relatively simple” finance processes perfectly from the start, in the knowledge that more junior staff can run the business from. The most common reason you might rely on an outsourced CFO is that you have particular challenges but lack the knowledge to tackle them in-house.

• But you still may have a one-time or unusual finance issue to solve, and outsourced help can step in.
• Keep in mind that you will be working with a CFO service provider in a personal way.
• The average salary of a full-time CFO in the United States is $415,000.
• Month-end closes, audit preparation sprints and dealing with auditors push your finance team into the red at key intervals during the year.
• Tomorrow, it could be preparing for an IPO.The point is, Embark’s a genuine partner for every step of your journey.

Off-loading the financial work to someone else can free up your time to spend it where it counts the most. Hiring a financial consultant can also set you up for long-term success. A lot of business owners are spending way too much time at work and sacrificing other parts of their lives in the process. Often, these overtime hours are taken up with things like managing the books, because those aren’t responsibilities that you, as the business owner, are often most skilled at, or most interested in managing. They are, however, a necessary evil for anyone running their own business.

Deep Financial Expertise

Then develop a great list of CFO interview questions to help you gain deeper insight into each candidate’s experience. Initially, however, they will manage your company’s accounting team and do much of the financial analysis themself to translate that data into meaningful insights. They will also be the primary point of contact for external financial partners, like your tax advisor, bankers, and investors. As we’ll see, these give you access to specialized finance advice, tailored to your business, without a long-term commitment. You save yourself from going through a lengthy search and hiring process, and you get the expertise you need. And yet, there will always be times when a seasoned finance professional comes in handy.

• Make running your company a breeze – streamline operations and integrate leading cloud systems.
• Many companies to choose hire an outsourced CFO when they are planning to raise capital, anticipating a merger or acquisition, or are preparing the company for a successful exit.
• Our CFO services offering is split into three distinct packages to meet your company right where it is, as you lead your team towards industry-leading growth, profitability and cash flow.
• Before we can get to “how to select the right outsourced CFO service,” we need to agree on what outsourced CFO services actually are and what they offer.

Most providers will create a custom quote based on your specific needs. Contrast that with the average CFO salary of $225,000 to $275,000 per year (salary + benefits), and you’ll easily save 80 percent by outsourcing the CFO role. Keep in mind that some outsourced CFO services group CFO-level insights with bookkeeping and controller services, essentially delivering an outsourced finance department. Pilot is a provider of back-office services, including bookkeeping, controller services, and CFO services. Pilot is not a public accounting firm and does not provide services that would require a license to practice public accountancy.