Being a business owner has many perks, and can be incredibly rewarding, however, it is also stressful and complicated. It is essential to provide excellent customer service if you want your business to flourish, and you also have employees to pay and care for. So, it’s no wonder that dealing with the finances and accounts of the company get pushed aside. This is why many businesses hire an accountant or bookkeeper, but this can become expensive. There is an alternative, however, in the form of outsourced CFO services. If you aren’t familiar with the term, keep reading to find out everything you need to know about outsourced CFO services.
What are outsourced CFO services?
Essentially, this is an alternative to hiring a full time accountant. This system gives you access to financial advice without having to hire someone full time. Anyone you hire on a contract basis will have the skills to efficiently manage all financial aspects of your business. This will take a lot of the pressure off of you and allow you to focus on other aspects of your company. It is often frustrating to have to pay a large amount just for someone to organize your books, so the great thing about outsourced CFO services is that they are relatively affordable; oftentimes you only have to pay for the skills you require and not a standard amount for someone to do lots of other things that you don’t need dealing with.
What can they do?
The point of hiring an outsourced CFO service is so you no longer have to worry about anything finance or accounts related. These systems should offer a complete package and deal with any aspect you need it to. Some of the things these facilities offer are as follows:
- Tax management
- Debt management
- Business banking relationships
- Measures trends in sales
- Creates forecasts and plans
- Deals with cash flow
- Reports on profits compared with targets
How can it help my business?
It is quite clear what outsourced CFO services can do, but how can they actually make a difference to your business? Well, this is quite simple, it takes a lot of the pressure off of you and deals with it. This includes dealing with staffing issues, meaning it will help to ensure you always have the correct amount of employees in at once. It will also help your business by allowing you to see real time data and give you deeper insights into how your business is performing; in turn this will give you the information you need to make better decisions. It will also allow you to get any financial advice you need, so you will never need to feel unsure about anything accounts related.
Are they good for small businesses or startups?
Many new businesses think that they don’t have enough work for a full time accountant, and this is probably true. However, this doesn’t mean that financial assistance isn’t needed. Therefore, outsourced CFO services are exactly what a new or small business needs. You will gain all the knowledge and insight without the concern of paying someone on a full time basis. Furthermore, you will have access to everything the financial adviser can offer, but only to the extent you want it.
Dealing with the financial aspect of your business can be a complete nightmare if you aren’t an expert. But it can also seem counterproductive to hire someone on a permanent basis if you know you don’t have much work for them- that would be the opposite of a good financial decision. This is why outsourced CFO services can be so essential to your business and helping it grow.