Why Would Any Company Use An Outsourced CFO Service?

It doesn’t matter if your company is a start-up or a private equity-backed firm or any kind of business in between, there are lots of scenarios where outsourcing a third party CFO service is the best way to address the current challenges of a business owner. Scenarios and circumstances that call for outsourcing the CFO function are all extremely varied but they can include some of the following reasons:

• You are a business owner and your business is currently growing at a good rate. This usually means that you have a lot of irons in the fire so to speak – you simply don’t have enough time for building your business and all the responsibilities that come with it like budgeting, forecasting, and analyzing financial results.
• Another scenario would be if you own a business and you know both your customers AND your products and/or services inside and out, however, this might mean that you are far less focused on dissecting your company’s financial state. This can result in you sometimes making decisions based on instinct as opposed to financial data and other objective inputs. As you might guess, this is not always the smartest route to go!
• There could be a scenario where you have raised some venture capital to expand your business. This means that you need to regularly update your investors about profit margins, customer acquisition costs, and other key performance indicators, however, if this is your first time, you might not be exactly sure how to put that together.
• Perhaps your business has been getting along just fine with a one-person finance department, but then that person just gave their two weeks’ notice. Now, you may have a bookkeeper, but what if you don’t fully understand the financial statements that they prepare for you? Perhaps you feel like you could use more in the area of financial planning and analysis, but you’re not entirely sure what you would need to make that happen.
• Maybe you have a bookkeeper who does a great job with the day to day accounting but does not fully understand the ramifications of those financial statements they are preparing and presenting to you.
• One last scenario would be that your business is not performing as well as you think it should and/or could. The answer to this could be an objective third party can help you understand where it falls short and where action is required to turn the business around and produce a better bottom line.

How To Recognize the Need for Outsourced CFO Services

Now, maybe some of the things mentioned in the list above hit a little too close to home. Or, in many cases, a business owner will simply have the feeling, “something isn’t right here.”

It often starts with cash flow – your financial statements say the business is making money, but sometimes you don’t have enough cash on retainer to pay the bills.

The deciding factor could be a particular event that requires an in-depth financial analysis and this just simply takes too much of the CEO’s time and that leads to the feeling that “we just can’t do things this way anymore.”

It doesn’t matter if a firm has outside investors or not, CEOs will often themselves have an unfulfilled need for someone to help interpret financial data or to provide financial data they don’t have. However, many times the CEO will need this but simply cannot commit to hiring a full-time, in-house CFO.

If your accounting needs are handled by outsourcing, you know the relief that comes with having that work managed for you. The same applies to the finance function, but your accounting firm is not the place to turn for help.

Accounting firms do auditing and tax planning, but they are not well-positioned to help with financial forecasting, improving the profitability of your operations, and analyzing opportunities to grow your business. For that, you need financial experts committed to financial expertise and best practices.

Could your business benefit from Outsourced CFO Services?

Outsourcing the duties of a C.F.O. can significantly contribute to both the financial and strategic decisions made for many businesses, including yours. As an expert in providing outsourced CFO services, TITAN Financial Pros is ready to help your business achieve its financial goals.

These are just a few things to consider when deciding if your business may be in need of an outsourced C.F.O. Hopefully you found these helpful. If you would like to learn even more about how you can streamline the efficiency of your business finances, then you are more than welcome to contact us and we will take a look at your unique situation and offer some sensible solutions that would work best for you!

“TITAN Financial Pros provide an informational service only and are not responsible for any investments made applying this information. The results described are not distinctive and are not guarantees of future income. Any assumption contains risk and is 100% the responsibility of the individual to assess the risks/rewards involved. We bear no liability assumed or implied for your application of the information shared from this content. This information is for educational and entertainment purposes only.”

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