As your business grows, so does the complexity of its finances. Financial management becomes more challenging. You find yourself spending more time on bookkeeping and accounting tasks instead of focusing on growing your business. Your financial reports may also lack analytical data and your business decisions still mainly rely on your gut instincts.

That's where an outsourced Chief Financial Officer (CFO) comes in!

In this article, we'll explore the benefits of hiring an outsourced CFO to help you scale your business.

What is an Outsourced CFO?

An outsourced CFO is a financial expert who works with your business but is not a direct employee (freelance or deployed by a firm). In most cases this outsourced CFO will work with your company on a part-time basis.

Their main goal is to provide financial guidance and upgrade your finance processes and outputs to help you grow and make more informed business decisions. An outsourced / part-time CFO would usually be involved in financial and management reporting, budgeting, forecasting, cash flow management, transaction advisory, funding, etc.

You can find our previous blog article to get more information on the Management Reports here.

In some cases, you can even outsource your overall finance operations. Some firms (like Proseso Consulting!) will give you the option to outsource your CFO needs as well as your bookkeeping and taxes requirements. This is usually a good setup as you ensure your daily bookkeeping and strategic finance functions are aligned and will work hand in hand.

Why Hire an Outsourced / Part-time CFO?

Expertise

An outsourced / part-time CFO brings financial expertise to your business that you may not have in-house. They have experience working with a variety of businesses - across different industries and even countries - and can provide insights and best practices to help you manage your finances more effectively.

Cost savings

An outsourced / part-time CFO can be a cost-effective solution for businesses that don't need a full-time CFO. You can pay for the CFO's services on an as-needed basis, which can save you money compared to hiring a full-time CFO. 

Depending on the scope of work, the firm you work with can allocate an experienced part-time CFO (that will focus on high value tasks) together with a junior accountant (that will focus on the repetitive tasks) to optimize efficiency and cost.

Time savings

As a business owner, you have a lot on your plate. By hiring a part-time CFO, you can free up your time to focus on other areas of your business.

The CFO can take on financial tasks and responsibilities, bringing solutions and initiatives to help you and your business.

Strategic planning

An outsourced CFO can help you develop a financial strategy for your business aligned with your long term goals. They can provide insights into your business's financial performance, identify areas for improvement, and help you make informed strategic decisions.

Improved cash flow

Cash flow is critical to the success of any business. A part-time CFO can help you manage your cash flow more effectively, ensuring that you have enough cash on hand to cover your expenses and invest in growth opportunities.

Here is our blog article on Cash Flow Management.

Access to funding

If you're looking to raise capital for your business, a part-time CFO can help.

They can create financial projections to help you secure funding from investors or lenders. Your outsourced CFO will also be involved in the Financial Due Diligence (FDD) process as discussed in one of our previous articles here. 

Proseso Consulting - The Finance expert for growing and international businesses

For more information on our Services or if you have any questions on how you can outsource your finance functions, contact me directly at ninoy@proseso-consulting.com.

Proseso Consulting provides business advisory and finances managed services (bookkeeping and accounting, outsourced and automated payroll, tax compliance, financial reporting, etc.). We are here to help you achieve your long-term business goals!

Ninoy Salmon is a seasoned business and finance professional with extensive experience working with both fast-growing startups and companies in the Philippines and around the world.

Get in touch with our team at contact@proseso-consulting.com or visit us at www.proseso-consulting.com for more information about our services.

 

This blog article does not constitute professional or legal advice. It is only intended to provide general information on a subject.