CFOs are a crucial element to building a successful small to medium enterprise (SME). To better serve businesses that are becoming more complex and competitive, modern CFOs are strategic operators and experts in directing financial strategy.
The modern CFO sets standards for fiscal performance, manages budgets and assesses financial risk, all whilst directing long-term company expenditures through leadership and strong execution. To do so requires diverse experience in developing good business strategies, excellent communication skills and being up to date with the most efficient and effective technologies.
For SMEs, outsourcing your CFO is a flexible and cost efficient option. An external CFO brings new perspectives, tailored business solutions and improved adaptability to ensure your company is ready to pivot and face new challenges.
New Perspectives
An external CFO allows for a completely unbiased, new perspective. Outsourced CFOs are another set of eyes and are able to identify your strengths and highlight inefficiencies in your business finance.
They bring an objective review of your finances and can provide fresh advice for business planning, budgeting, forecasting and negotiations — unrestricted by corporate hierarchies or bureaucratic complications. CFOs can also use their fresh perspective to obtain and maintain suitable investor relations and partnership compliance.
Outsourced CFOs can direct training and development of any in-house accounting teams, introducing new technologies and insight to improve operational accounting functions. This includes an oversight function of accounts payable and receivable, payroll, cash flow statements, to producing all forms of financial reporting, e.g. a company’s balance sheet, profit and loss insights as well as customised reporting as needed.
Tailored Solutions
For SMEs, outsourcing provides tailored solutions that are specific to business needs. With clear communication between you and your external finance team, CFOs effectively manage financial forecasting and budgets, develop closer relationships with external stakeholders and provide sound advice on long-term business strategy and goals.
External CFOs are able to review all formal finance, HR and IT related procedures and implement emerging digital technologies to make your books leaner. They have experience interpreting both structured and unstructured consumer data, and can quickly respond with adaptable, customer-focused strategies. Additionally, outsourced services serve as good risk management for busy times when an expert is needed.
An outsourced CFO can examine your company’s business model to determine the appropriate accounting structure, even advising on appropriate accounting software systems for your business and teams. Their industry expertise means CFOs can hit the ground running, developing customised solutions, saving your business time and money.
Flexibility
Outsourcing is extremely time and cost effective for SMEs. It allows the financial side of businesses to become a streamlined process.
80% of SMEs that chose outsourcing cited the “prospect of saving time and money” as the main reason for this choice. An outsourced CFO gives you back the time and resources it takes to find candidates, conduct interviews, hire and onboard new staff, not to mention managing wages and leave periods.
Outsourcing also works for short-term periods in changing business climates. An outsourced CFO can provide specialised advice for: one-off projects, mergers and acquisitions, and provide input for new policy development.
As your business grows, your outsourced team can scale as required. This gives you the time to focus on overall business growth, confidently knowing you can access detailed reporting and forecasting to support collective decision-making processes.
Finding the Right Business Advisors
Business owners need a CFO that can drive growth and tailor solutions. An expert CFO will give your business access to a financial advisor with the expertise to provide sound strategy to scale alongside your business and provide flexible solutions.
Get in touch with us today to learn more about how we can support your business.