Introduction:

The CFO is a key influencer on a business’ success. From startup to enterprise, every business benefits from a strategic CFO. However, contrary to tradition and popular belief, not every business needs a full time CFO. Despite different business needs, a good CFO can help make the difference between a successful year and an unsuccessful one. Here’s why you should consider an outsourced CFO for your executive team.

What is an Outsourced CFO?

An outsourced CFO is a financial expert who steps into the role of CFO at a business in a variety of capacities. Outsourced CFOs can be hired in the interim, acting as the Full Time CFO until the business is able to hire one. 

CFOs can also be outsourced on a project, part time, or full time basis, hired to perform one specific task, or to fully command the finance and accounting functions of the business. They can consult, create financial strategies, and affect positive change just as well as a full time CFO, but on a pay for play basis.

Why Hire an Outsourced CFO?

Hiring a CFO can be a monstrous task. The implications of choosing the right candidate that fits within budget constraints and company culture can mean lots of time and energy spent reviewing resumes and interviewing. Choosing an outsourced CFO may be right for your business if:

You want to hire an expert, but can’t afford the salary. Outsourced CFOs are experts with proven success at many different companies. You’ll get access to their tried-and-true ideas, without having to pay a salary or benefits. Just pay for the project you need, when you need it.

You only need a few hours a month. Outsourced CFOs can work on a part time or project basis, which means no more paying for unused hours. Even better, outsourced CFOs are experts and have  provided services for  different companies, so  they’re likely to have seen your situation before or know where to find the answers you need faster than someone with less experience. 

You’re looking to hire a full time CFO, but need help in the meantime. Outsourced CFOs can pinch hit for a short period of time, keeping the financials up to date, assisting with planning and modeling, and managing the financial function so you’re free to focus on choosing the right candidate. Even better, they’ll help make the transition even smoother once you’ve found the right person for the job. Maybe you’ll even realize that you don’t actually need a full time CFO and that the outsourced CFO is able to meet your needs at a smaller cost.

You’re worried about choosing the wrong candidate. A good hire means more than finding the right expertise to get the job done. Oftentimes, cultural fit and personality can make or break an employee relationship, especially at the executive level. Outsourced CFOs work differently than internal hires and mitigate the risk of hiring the wrong person. Take an outsourced CFO for a test drive on a project or two before bringing them in full time. If it doesn’t work out, no harm, no foul.

Craft Your Executive Team for Success

Not sure what your business needs? Want to begin crafting your executive team with a financial expert to set your business on the path to success? 

Contact Lynnette Kiss at Books in Balance for a free consultation. For more information, visit www.mybooksinbalance.com. Get the tools you need to grow your small business. 

The information provided is presented for general information purposes only and does not constitute tax, legal or business advice.