How to Outsource CFO Duties: A Simple Guide

The biggest challenges facing small to medium-sized businesses are cash flow and growth. When time and efforts become a problem, outsourcing becomes an appropriate solution.

Outsourcing is when you use external companies to handle work performed usually by employees. It’s common to outsource functions such as development, HR, or marketing.

However, outsourcing high-end positions are often overlooked by companies. Although it relieves financial and management pressure. This article will share several things about how to outsource CFO duties.

When Would You Need to Outsource a CFO?

When you have a business, you’re great at identifying needs, the product or service, and what you need to lift off. But when the conversation shifts to finances, you’re a little lost.

This is normal. Usually, only those who have been trained know how to properly manage the company’s books. Here are some characteristics of those who may need to outsource their CFO:

  • Can not find a qualified CFO
  • Needs help with finance and cashflow
  • Is experiencing rapid growth and needs financial guidance

Instead of going through the hassle of finding the right CFO, which is expensive and daunting, you can find the expertise you need externally.

What Are the Benefits?

A good CFO will shape the direction of your company, challenge you to do better, and compares financial performance with other businesses.

When you outsource such a responsibility, it gives you the flexibility to draw on this guidance during busy times and pulling back when things are quieter.

You also gain financial expertise without any large commitments or risks. This includes a  reduction in cost. A regular CFO will cost around $132,000 to $200,000 per year. The cost of an outsourced CFO, on the other hand, will be around $30,000 – $70,000 per year.

Here are some other benefits:

  1. They work remotely so almost no overhead is needed.
  2. They only focus on areas that need focus.
  3. There are no other associated costs other than their services.

Here are more reasons why you should outsource a part-time CFO for your business.

What Is the Process?

If you’re interested in finding an outsourced CFO, then there are a few steps you need to take.

Firstly, identify your business and financial goals. If you want to find the right person, then you’ll have to understand how someone externally can best help your business.

Secondly, search the internet for potential candidates. There are many CFOs working digitally, so you’ll find most of them listed in google search. After this, you can create a list of firms or contacts you’d like to reach out to.

Thirdly, identify the qualifications and experience you need. When you contact potential candidates, you’ll need to decide how to qualify them. It helps to search for a Certified Public Accountant (CPA) designation. They should be familiar with your business type. They should be qualified to perform the activities needed to achieve your business goals.

Outsource CFO Duties for Long-Term Benefits

That’s it! Are you ready to outsource CFO duties? Remember, you’ll be able to benefit from the same financial expertise at the cost of an accountant. This leaves you the room to grow and move forward as a company.

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