As your small business or nonprofit grows, so to does your need for professional assistance.
In particular, the financial aspects of a growing organization require a great deal of attention. And while you may not be in a position to bring someone on full-time to take care of this for you at the moment, that doesn’t mean that you shouldn’t look to delegate these tasks to a professional.
By outsourcing your financials to a part-time CFO (Chief Financial Officer) you can access “big company” resources without the expense.
In this post, we take a look at the benefits of appointing an outsourced CFO.
What is a CFO?
A CFO is a senior executive who is responsible for the financial affairs of a company or other institution.
These responsibilities often include the past, present, and future financial health of an organization.
Typically this involves presenting and reporting accurate and timely historical financial information; addressing the present financial condition of the organization, taking into account risk and liquidity; and economic forecasting so as to ensure the company’s future financial success.
What are the benefits of hiring an outsourced CFO?
There are a number of benefits to outsourcing a CFO’s duties. These include – but are not limited to – the following:
Save Money
An average CFO salary in 2014 clocked in at around $314,000 per year. For a number of small and growing businesses and organizations, this level of expense is simply not feasible.
However, this does not diminish the need to appoint someone to oversee financial matters, and so rather than hiring a full-time CFO (which comes with the need to pay taxes, health insurance, and other benefits) you can outsource the responsibility to a qualified individual for a flat fee. This represents a significant amount of savings, without compromising on the quality of work your organization receives.
Valuable Insight & Advice
When you delegate your financial responsibilities – including your accounting, bookkeeping, financial statements, income projections, tax, budgets, and cash flow management, among others – to an outsourced CFO, you are tapping into a wealth of experience.
What’s more, you will receive a fresh set of eyes ready to address your organization’s challenges and help solve its problems.
And when you’ve hit that metaphorical brick wall, and you don’t know how to go about improving the financial situation of your company, you’ll have a source of expert advice and guidance ready to step in and steer you in the right direction.
Accuracy, Efficiency and Experience
An outsourced CFO can help you make better, more informed decisions as the leader of your business or nonprofit.
They do this by streamlining your accounting systems, doing away with out-of-date methods and processes, so that you’re looking at only the most accurate and up-to-date financial information.
You’ll also have peace of mind knowing that your company’s finances are being looked after by someone with a high level of experience, built up over many years. Your financial statements will be delivered with accuracy, financial analysis conducted with care and consideration, and your records organized so as to be ready when potential investors come knocking.
Are you ready to hire an outsourced CFO?
If you’re still in startup mode, you will find yourself wearing a number of different hats; from sales executive and HR manager, to bookkeeper and marketing director. But there will come a time in every growing business or nonprofit where your time is better spent on the big picture.
And the big picture should always be underpinned by solid financial information.
So, if you’re ready to embrace the growth of your organization, you should begin removing your many hats. Allow them to be worn by the relevant experts and watch your business or nonprofit prosper.
Checkbox can take the strain, providing the tools and expertise necessary to interpret your financials and help you meet your personal, financial and social goals.
As your strategic financial partner, you’ll wonder why you hadn’t outsourced the CFO role sooner.
Contact us today to discuss a customized plan that meets the needs of your business or nonprofit.