In today’s economy, many companies from start-ups to private equity-backed firms and all businesses in between, outsource many functions of their business. This is one strategy to handle the financial difficulties that many businesses encounter.
Outsourcing is necessary for a variety of reason and circumstances, including the requirement for greater financial leadership. Outsourced CFO consulting services could be what you need to take your business to the next level of success. Saddock Advisory can help you develop a solid financial understanding that will benefit your business.
What is an Outsourced CFO?
An outsourced CFO is a third-party finance leader that is responsible for all of your organization’s finances. They are responsible for a variety of financial services that include top-tier finance management, budgeting, financial projections, accounting, and operational guidance for your business. A CFO fulfills all of their roles without joining your company on a contractual basis. However, not all financial services need to be outsourced. You need them to help you with functions and tasks that are more strategic and will grow your wealth as a business.
The Benefits of Outsourcing a CFO
The cost involved with outsourcing a full-time CFO is much less compared to hiring the traditional way. You are gaining significant value to your business that will help your growth for a fraction of the cost.
Businesses require great flexibility in order to grow and move fast on par with the rapid changes of the market trends. Outsourced CFO services allow you to tap into experts that can assist you to make quick adjustments without wasting a lot of money.
Since they are not involved in your day to day operations, they have a wider experience and area of expertise. Meaning, they can analyze and evaluate your financial status without bias. They may also be able to provide you with insights that you otherwise could not have received for your own team.
Raise Business Funds
They can help you deal with the most time consuming activity of raising funds, while you focus on income generating business functions. Typically, consulting CFOs come with a broad network of connections. This benefits your business due to their substantial experience in negotiating and strategizing as industry experts.
In the early stage of your business, you have to give your time into nurturing it to growth. Outsourcing a CFO can you free up time for more essential operational tasks. This is more important when you are not an expert in finance. Strategic planning and financial reporting can take you more time to figure out, than a qualified expert CFO. An expert CFO can complete tasks in a fraction of the time. This saves your business time and also saves you money.
Choosing the Right CFO Service Provider
If you decide to outsource financial services, you must weigh all of your possibilities and conduct due diligence the same way you would with an in-house employee. Keeping in mind your business needs, the candidate you choose, whether they are an individual or a financial firm, has to be a good fit for your company.
Significant Factors to Consider in Your Evaluation
Individual Consultant vs. Financial Firm
- Both alternatives have their advantages and disadvantages. They can both produce the same outcome as long as you hire someone who is capable of doing the work. An individual consultant will give you a more of a one-on-one approach than a CFO service team. A financial firm, on the other hand, is composed of a group of CFOs who can collaborate as a team to develop a successful financial strategy for your company.
Expertise and Experience
- When hiring a CFO, make sure they have the appropriate educational, experience and expertise backup to their offering. This is important since the assistance you require is customized to your money management goals. As a result, identify the specific qualifications that you need and score every candidate based on the same criteria.
Ask for References
- Before selecting the right candidate to manage your finances, ask for references. Think about all the range of services they are providing and if they have a proven track record of the number of achievements. Also, you should ask if they have worked with similar clients equivalent to your business. Moreover, request or contact some of the clients they have worked with to see if they were able to deliver a quality job.
Saddock Advisory Provides CFO Consulting
Bringing in a finance expert doesn’t have to be a difficult, expensive venture. As your company grows, having an expert to guide you is important. At Saddock Advisory, we offer the best financial services to help manage your business wealth.
Our finance team has expertise in wide areas of financial management services. We can manage all aspects of your financial management and planning, so you can focus on what you do best! Contact us today.