Why You Should Be Outsourcing Your CFO

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Finances are the heart and soul of your organization. Cash flow, expenses and balance sheets keep the door open and allow your operation to expand and grow. A key member on the company’s management team is the chief financial officer. The person is mixture of strategist, treasurer and controller. He or she sees the company’s big picture, but also understands the daily inflow and outflow of revenue within the organization.

For many organizations, outsourcing the role of the chief financial officer is an important and profitable decision. Technology has greatly enhanced and changed the CFO position on recent years, and an outsourcing company can provide the necessary expertise in an ever-changing business climate.

Cost savings

A full-time chief financial officer can cost $250,000 or more or year. While that person brings great expertise and knowledge to the organization, he or she can be a huge drain on your budget. You can hire an outsourcing company for a fraction of the cost and still bring the expertise and business acumen to the table.  An outsourcing company has people on staff with decades of experience in the financial sector.

Long-term strategy 

It’s hard to focus on long-term strategy for your company. You’re out selling the business and dealing the day-to-day operational fire. An outsourcing company is the perfect partner that can help you develop and implement a long-term strategy. The outsourcing company has access to your books but can also meet with you and others within the organization. The company will understand your company’s vision and help you plan for the next 6 months, 12 months and even two years down the road.

An independent viewpoint

An outsourcing company is an independent, third party. It has no personal interest in the success or failure of your organization. As such, it will give you unbiased advice about your organization. An outsourced CFO company will take an objective view of your organization and give you a straightforward, independent view.

Quicker business decisions 

Business moves at the speed of light today. You need someone who can help you make important decisions quickly. An outsourcing company understands your business and quickly gathers the relevant information. You might have to wait weeks for your staff to come up with a recommendation, but in today’s business climate, you must be presented with information as quickly as possible.

Fraud detection

You can’t have fraud undermining the integrity of your organization. You can suffer from employee fraud or other types of fraud. An outsourcing company is independent and will dig into your finances and can detect places where fraud and other nefarious activities are taking place. There is always the chance that your internal bookkeeping is hiding the illicit activity from you.

Accurate financial statements

You need accurate financial information. An outsourcing company has bookkeepers, CPAs and other accounting professionals on staff. They will provide accurate financial statements in a quick and timely manner. You will get the exact information you a seeking in a format that you can understand.

Find ways to free up cash

You need positive cash flow to grow a business. The money allows you to take advantage of new opportunities and pay vendors. It’s the lifeblood of the organization. An outsourcing company will look at your books and find ways to free up more money and increase your cash flow. That could be through reducing expenses or streamlining operations. There are numerous ways that an outsourcing company will find hidden cash.

Loan and debt negotiations 

Your organization might have debt associated with its operation. That debt could be bank debt or debts to vendors or other organizations. You might need someone to help negotiate or restructure the debt. An outsourcing company is the perfect type of organization to conduct the negotiations. The company understands the ways the debt can be restructured or changed and can serve as an independent, third-party during the negotiations. The company can help you achieve the goals that are required in the negotiations and give your organization some financial relief.