CFOs, or Chief Financial Officers, are integral to the long-term financial success of your organization. They can help your team with financial projections and growth strategies, track essential costs, and provide guidance on everything from asset management to loan negotiation.
However, some smaller organizations only need these CFO services periodically and cannot justify the high price tag that a quality CFO might command in a full-time position. That’s why outsourced (or virtual) CFOs can be an excellent alternative for small to mid-size organizations looking to grow in a financially savvy way. Here are some of the biggest benefits of using an outsourced CFO:
A wide range of industry experience – While any CFO has considerable experience working with companies, it is possible that they have spent their career with large tenures at 2 or 3 companies. In contrast, outsourced CFOs typically have extensive experience working with various companies in industries across the board. They can draw on this wide-ranging experience to make informed decisions for your company.
A robust team and network – Outsourced CFOs typically have a team that is available for assistance in managing your organization’s financial needs, providing more insight and eyes to catch errors or opportunities. They also, through their industry experience, have usually amassed a helpful network of contacts from financiers and lenders to other business leaders.
Cost-effective – One of the biggest draws for choosing a virtual CFO is that it is cost-effective for a variety of small to medium-sized businesses that might only need a part-time CFO on board. This is especially helpful for start-ups looking for financial expertise.
Quick integration – Unlike a full-time staff member that might need a longer training period, virtual CFOs can seamlessly start working with your team – taking advantage of their experience operating in this role with other organizations and knowing the right questions to ask.
A great CFO helps your team make key decisions based on your finances and pursue sustainable growth. This is in addition to helping your organization forecast and generate revenue, stay tax-compliant, and improve your systems and processes. With an outsourced CFO, you can depend on the expertise of a professional while enjoying the flexibility and scalability of their services.
Your team can leverage a virtual CFO for both their wide range of expertise and credible connections to build relationships. Being that virtual CFOs are not full-time employees of your business, they also are not entrenched in organization politics and can be transparent and honest with you about issues within your company or finances.
At ClarkSilva, we offer outsourced CFO services as well as have a large network of CFO providers we can recommend. Whether you need virtual CFO services once a week, month, or quarterly, we can guide your team through the process of bringing on this key member of your organization. View more about our outsourced CFO services here and contact us with any questions.