By Tracy Miller
|
Nov 19, 2021
| External CFO | News

As a business matures, there comes a time when more sophisticated financial governance will be required. This often occurs when the business is on the cusp of significant growth, has ambitious goals, may be held back by limited insights into their financial situation, or is experiencing issues with cash flow, costs or profit.

Whether your business is looking to take hold of opportunities or clear barriers, an outsourced Chief Financial Officer (CFO) can help. This is a common strategy for fast growing small and medium sized businesses which can’t yet afford to hire an in-house CFO, but require the expertise of a CFO in the business. Outsourced CFO solutions can take your business to the next level by overcoming financial obstacles and arming the business with the right financial information to make strategic business decisions.

What are outsourced CFO services?

Outsourced CFO solutions involve the delivery of high level financial advice from a third party business advisory or CFO services firm. Leveraging their extensive experience and expertise, an outsourced CFO will scrutinise your business to uncover opportunities, overcome any financial challenges and enable your business to put your best foot forward.

An outsourced CFO and their team will:

  • Provide strategic financial advice to your CEO and leadership team
  • Undertake detailed reporting on your financial performance such as profitability, cash flow and more
  • Develop detailed budgets, forecasts and cash flow reports
  • Advise on tax planning, asset protection and succession planning
  • Make recommendations on how to run your business more efficiently, and reduce costs or overheads
  • Source capital and other funding
  • Set policy around payroll and financial management and ensure compliance

What are the benefits of outsourcing your CFO services?

There are several benefits to outsourced CFO services including:

Lower cost

Most small and medium sized businesses won’t be able to afford to recruit a CFO in-house. According to payscale.com the average salary package for a CFO in Australia is around $180,000. Even for those businesses which can afford this, they may find they don’t require CFO services full-time so the ROI of this investment isn’t great.

Outsourced CFO solutions allow you to only pay for what you need, giving your business budget flexibility without sacrificing on expertise, as well as giving you the option to scale up and down as needed.

Still concerned about the additional costs of engaging an outsourced CFO? Consider the opportunity cost. If your business is missing out on opportunities to raise capital, improve profitability or optimise costs, then you are effectively losing money. Investing in an outsourced CFO solution gives you strong RPI as it will ensure you don’t miss out on these opportunities.

 

What are the Benefits of Outsourcing CFO Services?

Better value

Typically when you engage an outsourced CFO service, you gain multiple minds for less than the price of one. While you may have one point of contact, your outsourced CFO will usually have a team behind them to assist with reporting, forecasting and other requirements. That represents exceptional value, as you gain a team of experts without needing to increase your headcount.

Greater expertise

The expertise and knowledge of an outsourced CFO will exceed that of a typical accountant. Their job is to approach your business at a strategic level, unlocking opportunities and addressing any issues. They bring a higher level of experience and knowledge to your business, at a lower cost.

Strategic financial advice

By providing transparency around your business’ financial position, an outsourced CFO will be able to advise you on important business decisions such as when to tighten spending, source capital, invest, expand or reduce product lines or restructure. Either they will proactively advise on these strategies when the opportunity emerges or they can verify that these business decisions make financial sense and can advise on timing and approach. This level of sophistication in your financial governance is invaluable when it comes to your business reaching its full potential.

Strategic financial advice is particularly important in the current COVID-19 environment. An outsourced CFO can help your business navigate the complexities and uncertainty of the current conditions, build resilience into your business, help you take advantage of government stimulus, and develop short, mid and long-term strategies to withstand the complex environment.

Signs your business may be ready for an outsourced CFO

  • Your finances are becoming more complex
  • You have ambitious growth goals
  • You don’t have a good understanding of your profitability or cash flow, or are experiencing issues in these areas
  • You can’t afford to recruit a full-time CFO
  • You want to improve your financial reporting or are concerned your data isn’t accurate
  • You’re wondering whether you may be missing out on market opportunities

If you’re interested in finding out more about sourcing an outsourced CFO in Sydney, contact us today.


At Keeping Company, we’re not just accountants, we’re business people too. With our counsel, your business can reach its full potential. 

We have a team of experts; Cloud Accountants, Business Advisors, Finance Specialists working together and ready to help, contact us today.

1300 533 787

service@keepingcompany.com.au

 

For all media enquires please contact Tracy Miller, CMO, Keeping Company 0414 898 452.

The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.