7 Benefits of Outsourced CFO Services

It is now possible to get great financial insight from professionals with experience in your industry without requiring them to move to within a commute-radius of your locale. It’s a matter of finding the best CFO service anywhere, not just the best in your zip code.But, of course, more choices means a tougher decision. We aim to answer each of those questions so that you can proceed confidently in your search for outsourced CFO solutions. Our professionals provide high-level expertise that help businesses make sound financial and accounting decisions and assist in making processes and technology run more efficiently.

Outsourced CFO services allow you to tap into guidance that will help you boost efficiency, increase profitability, and grow your business. But perhaps most importantly, partnering with an outsourced CFO firm saves you from having to perform your own back-office tasks, keeping you focused on your business. An outsourced CFO does a lot more than an outsourced accountant and/or a bookkeeper.

There are thousands of small businesses.

Peter enjoys freelancing to help clients with capital raising, M&A, FP&A, and various CFO-related functions. Gain strategic insights and leadership to help fulfill your long-term business needs with outsourced Controller and CFO services. By partnering with TGG, you’ll also have access to a complete team that includes a controller and an accounting manager.

Our articles, quick tips, infographics and how-to guides can offer entrepreneurs the most up-to-date information they need to flourish. Well now that we have Escalon, our day to day operations are much easier for us to manage and much more efficient. And also, there’s far less mistakes, so it’s a big relief to all my board of directors. I highly recommend any real estate company to call Escalon Tax Services. You’ll get wonderful services, kind attentive time from Escalon. Or maybe you’re looking for more than just the once-a-year conversation with your accountant.

Ultimately, their goal is to make your business more efficient. They develop a very strong awareness of your company’s strengths and weaknesses, while also identifying external opportunities and threats. They understand what’s happening inside your organization in particular and with your industry in general. Then, they leverage this perspective to create financial forecasts that help you make better decisions.

How can Preferred CFO help you achieve your goals? Download our growth brochure for more information.

An outsourced CFO will fulfill that same strategic role – but instead of joining your company as a corporate officer, they will work with you on a contract basis. Most outsourced CFO services (sometimes also called fractional CFO or virtual CFO services) are available at hourly or subscription rates. A lot of people who engage the services of an outsourced CFO ask them to do their business’s day-to-day bookkeeping and accounting. This is a bit like having a samurai sword and using it to cut vegetables. CFOs usually command a high price for their time, so using them for basic accounting tasks can be an expensive and ineffective use of their expertise. An outsourced CFO can advise business owners on how to negotiate more profitable contracts with customers.

• Before we can get to “how to select the right outsourced CFO service,” we need to agree on what outsourced CFO services actually are and what they offer.
• Sikich’s outsourced CFO services help our clients gain visibility into the financial health of their businesses by fulfilling strategic and consultative functions like budgeting, forecasting, and internal audits.
• As investor, he contributed to 25+ private equity deals that have deployed $500 million.
• But what saved you money back then may be costing you money now.
• He supports companies in finding tailor-made funding solutions by early-stage investments and introducing them to his inner circle of investors and Nasdaq.
• A CFO can advise on business development, report-making for annual analysis, and suggest further steps by studying the company’s financial activities.

The average salary of a full-time CFO in the United States is $415,000. When you hire ORBA Cloud CFO’s fractional CFO services the monthly fees start at $4,000 per month. That means you could see up to a 90% savings depending on how complex your financial requirements are. This provides a more immediate solution than hiring internally, plus outsourced CFOs are self-managed and any HR needs are normally looked after by the company taking the onus off of you. Because outsourced CFOs work with a number of clients at once, they bring cross-industry experience that offers a unique approach to your business. I am so glad we chose NOW CFO to help us with our accounting needs.

Are Outsourced CFO Services Right for My Business?

He freelances because it exposes him to a wide range of companies. We develop transparent and insightful financial reporting helping you make informed business decisions. An Outsourced cfo has a wealth of experience and knowledge at their fingertips.

Hiring an outsourced CFO does not mean you are giving up quality. These services will match you with a CFO that can suit the needs you have and provide the best outcomes. What really sets Toptal apart is the caliber of finance talent available in their network. I had a very specific and pressing need, and Toptal quickly matched me with the perfect person for the job. The expert produced a thoughtful and robust financial analysis that has ultimately allowed us to forecast and prioritize initiatives much more efficiently. He’s also raised $500 million+ for clients as a VP at KeyBanc Capital Markets, a commercial and investment bank.

CFO Duties

That means these companies may need a CFO at less than $1MM and will probably want to graduate to a full-time CFO at less than $50MM. A Software as a Service (SaaS) company, for example, could be in need of a contract CFO service at $500K and employ a full-time CFO when it reaches around $35MM, perhaps earlier. The massive move of data and systems to the cloud over the last few years is enabling many small businesses and non-profits to “go lean” while simultaneously driving business growth. These organizations now depend on remote 3rd-parties for activities that used to be performed in-house. The shift from in-house to outsourced has created all-new service industries.

While every company can benefit from the high-level strategy, operational fine-tuning, expertise, and business contacts of a CFO, not every company is in a position to hire a full-time CFO onto their team. Your finances are perhaps the most important part of your business, but they can often get lost when you’re focusing on everything else. Of course, you need great products or services, a strong marketing plan, and a commitment to customer retention, but keeping all these balls in the air requires the right financial strategy. You save time because you don’t have to recruit, train, or onboard someone.

Is an Outsourced CFO Valuable?

At a fraction of the total cost of hiring a full-time CFO internally, you can access the very same high-caliber financial services and expertise by using a virtual CFO. Your need for their services will hopefully grow as your business does, but you’d be able to scale up along the way. At CFO Hub, we are passionate about helping businesses like yours succeed. Voted San Diego’s No.1 accounting firm in 2023, you can rest easy knowing our CFOs have the experience and knowledge to help you maximize your business potential.

We provide expertise to U.S. subsidiaries of foreign entities and to international businesses considering U.S. expansion, including complete access to all of our outsourced services. Our practitioners coordinate U.S. federal and state tax registrations, help establish the proper entity structure, and assist with U.S. employee and related compliance requirements. An outsourced CFO can help your business create strategy and business forecasts and plans. They focus on current performance needs, long-term strategic planning and guidance, and provide customized solutions specifically designed to take your business to the next level. It all starts with the first free consultation that helps identify your organizations most pressing needs. This ensures that you have the right consultants, skills, and industry experience that match your project requirements to start seeing results on day one.

Small companies (~$10MM in revenues) can expect to spend about $300,000 to $400,000 annually for a full-time CFO (including bonuses, benefits, overhead, taxes, and equity). These numbers can vary, of course, depending on the industry, company size, location, and the CFO’s experience. Most companies hire a part-time bookkeeper and tax accountant quickly. But, once you encounter higher-level financial challenges, it might be time to add an outsourced CFO, especially if a full-time hire is either cost-prohibitive or unnecessary. For example, here are some signs that you are ready for financial leadership.

In the earliest days of your small business, you handled many of your most important administrative processes. But what saved you money back then may be costing you money now. Our experts have reached the pinnacle of their profession; they have extensive credentials coupled with decades of experience.

The solid accounting processes support clear decisions and confident forecasting and future-pacing for the companies we work with. Consultants possess valuable viewpoints in several areas of business. CFO outsourcing services brings an experienced and fresh viewpoint in order to dissipate the company’s challenges and come up with innovative solutions. An Outsourced CFO must have direct access to the heart of the company’s financial processes.

The Benefits of an Integrated Approach

A few may work on an hourly rate, but you will usually see fees by day, week, or month. So most of the pointers we provide below will be applicable both to local and non-local providers. Learn what outsourced CFO services provide, which companies benefit from them, how much they cost, how to find the best providers, and what they’ll accomplish in the first few weeks.

Our goal is to lift our clients and to provide them with complete financial visibility and strong financial processes to help them to succeed and grow. Finally, the strongest Outsourced CFOs have access to a full range of finance and accounting talent, allowing them to assemble temporary or long-term teams to achieve key objectives for their clients. Generating basic financial reports is easy when you have accurate bookkeeping records, but to truly understand your business, you need to go beyond the basics. You need reports that can give you insights into your business.

We did not have the staff bandwidth and they have been the perfect fit for our growing company. We were able to find the skillsets we were looking for, and NOW CFO was able to find our unicorn. We provide a FREE Consultation, where we learn all about your opportunities and the challenges we can help provide solutions for.

An outsourced CFO is a great option if you need an honest opinion on finances. They can research the business finances and offer valid information. It’s a great way to get an honest and clear picture of your finances. The role of an outsourced CFO is to provide your business with the best financial picture. They have no personal agenda in your business and can offer advice with no bias.