There are many different scenarios in which outsourcing CFO services can address challenges posed to entrepreneurs and business owners, whether you’re a start-up, privately backed firm, or a multigenerational family business. If you’re unsure exactly what it means to outsource the functions of a CFO, the following illustrates why this can be quite a beneficial move.
Many of today’s companies outsource various daily functions, such as accounting, payroll, and marketing. There are many business owners, however, who are unaware that outsourcing finance functions even exists – not to mention the associated advantages. Outsourcing the functions of a CFO can put you in touch with financial experts who have wide-ranging experience and stay up to date with current best practices. Bottom line – it allows you to access all this experience only when you need it, as opposed to committing to in-house staff.
Business Owners Who Should Look into Outsourcing CFO Services
A lot of situations call for outsourcing your financial services, such as:
- You’re an entrepreneur running a brand-new start-up and things are really taking off. With so many balls in the air, there’s just no time to budget, forecast, and analyze all your financial results.
- You’re an established small- or medium-sized business. You could recite the perks and benefits of your services or products in your sleep and you know your customers just as well. Because of this customer-centric focus, you might not spend too much time learning the ins and outs of your business’ financial side. Because of this, you may make knee-jerk decisions based on “gut feelings” rather than the underlying financial data.
- Regardless of the type or size of business you own, it just might not be as successful as you think it ought to be. Having the assistance of an objective outside party lends an understanding of your business’ shortfalls and where you should take action.
As you can see, outsourcing CFO services can be helpful on a variety of levels.
Recognizing a Need for Outsourced CFO Services
The realization that you need an extra set of eyes when it comes to the types of scenarios above stems from the understanding that there are probably several facets of your business that could be executed more efficiently. It might be something as simple as thinking something just isn’t right.
This usually begins with your cash flow. For instance, financial statements might show a different picture than your actual cash on hand, which has been triggered by an event that must be analyzed in-depth, eating up your already precious time. And this, in turn, alerts you to the reality that something needs to change.
However, the situation comes about, you’ll need an experienced CFO to help you interpret data or discover data you don’t know exists. But you might not want a full-time CFO, and that’s okay. Outsourced CFO services can significantly contribute to strategic business decisions.
At Navitance, we’d like to help your business continue achieving your financial goals.