Contact us today for a free consultation, and we’ll ensure you get access to experienced fractional CFO services that will take your business to the next level. His first venture was CMR Technologies, a FinTech company based in San Francisco serving the investment management consulting space. From CMR, Mr. Lieberman formed Xtiva Financial Systems, a software company specializing in sales compensation solutions for the financial services industry.
Much less, they don’t think their business even needs (or can afford) a CFO. They think “Coca-Cola” needs a CFO…not their $4mm Outsourced cfo construction business. Now that you’ve set goals, the next step to determine your gap is to determine where you are now.
Are you ready to get back to running your business?
As your company grows, consider leveraging an outsourced CFO to get the guidance you need, at a price your company can afford. Some articles suggest using an outsourced CFO solution to handle fundraising for your startup, however, we don’t recommend doing this. Investors are usually buying into the story of the founder’s vision, so it’s the founder who should be meeting with investors and developing relationships, rather than a representative from an outsourced CFO solution. Where outsourced CFOs can help with your fundraising is by preparing documents, slides, and financial models you can take into investor meetings. However, if you choose an outsourced CFO without the relevant experience, the support they can offer will be limited. For instance, if your business is a SaaS startup and you work with a CFO specializing in direct-to-consumer businesses, chances are they’ll only be able to act as an adviser rather than being a hands-on partner.
Here are eight additional benefits of outsourcing CFO services that can help you enhance the financial health of your company. CFO services typically offer high-level, strategic services on a project basis or on a part-time basis; for example, working on systems design and analysis as well as operational optimization. A negative cash flow might happen in the early stages of starting things up. A CFO makes sure you stay in positive cash flow, but they’ll also make sure that your organization is utilizing things correctly. Your growing business needs to spend some profit building up staff and infrastructure for long-term growth. A CFO will also look into minimizing expenses, such as ordering higher amounts of things than in the past to get costs down.
Receive higher-level accounting, financial expertise, and guidance when you need it. Sikich provides strategic planning and budgeting, management of your overall financial structure as well as operational oversight and improvements through CFO consulting. It’s essential to note that while outsourcing the CFO services may seem costly, it can be more cost-effective than hiring a full-time CFO.
Mr. Lieberman served as Xtiva’s CEO, building the company to over $10 million in revenues and 100+ clients. He also served as the President and CFO for Interactive Donor, a New York-based Benefit Corporation which incentivizes charity through rewards. As the senior finance and accounting team member, your CFO is ultimately responsible for your financial reporting and analysis functions. Therefore, they hire, train, and lead the staff you need to get it all done.
Whatever your small business labels them, they’re remotely delivered and professionally managed accounting services and help with your financial strategy. They exist to support you as the CEO so you know you’re getting proper financial advice and are aware of both opportunities and dangers that might be lurking. Virtual CFOs should be your right-hand person in executing your financial goals.
Recognizing the Need for Outsourced CFO Services
As your Cybersecurity Advisor, we are available to translate technical concepts to senior management and boards and translate highly technical information to help educate your IT and cybersecurity teams. Allows corporations to quickly assemble teams that have the right skills for specific projects. Pair freelance experts with a full team of SMEs for end-to-end value creation. Key performance indicators might not relate directly to money, but they might illustrate how well your company is doing. A CFO might be like a physician taking the vitals of a patient to see how healthy they are.
- CFOs are more experienced in M&A transactions, strategy and long term financial growth than Controllers or Accounting Managers.
- A CFO will have at least 10 years of experience in a leadership capacity.
- Our teams communicate when changes arise and provide full transparency when it comes to cost and budgets so there are no surprises.
- We develop a custom approach for each client that includes a monthly project plan.
- The outsourced CFO service should be able to give you a 90 to 120-day roadmap of everything that will occur in this period.
After identifying your needs, you will be able to review different services. With NetSuite, you go live in a predictable timeframe — smart, stepped implementations begin with sales and span the entire customer lifecycle, so there’s continuity from sales to services to support. Outsourcing will help you save time, and it can also give you access to strategic insights that you may not have had on your own. There’s never a bad time to consider CFO outsourcing, and the sooner you implement these services, the sooner you can plot a new course for your organization’s future.
Another important task for your outsourced CFO is risk management. They should have a detailed understanding of possible risks related to your business and strategies to mitigate them. They can also help you maintain regulatory compliance and ensure all financial activities adhere to existing laws and regulations. NOW CFO has the expertise, tools, and resources to provide organizations with an entire financial and accounting structure, from Staff Accountants and supervisors all the way up to the CFO position. Our outsource model allows you to customize a service package to meet your individual needs and stay within your budget.
EisnerAmper’s extensive list of outsourced CFO clients include growing companies, companies with or considering an international presence, public companies, and those backed by venture capital and private equity firms. Our practitioners are seasoned leaders of accounting departments who can serve as liaisons with attorneys, payroll/PEOs, banks, auditors and insurance providers. Our leadership team offers companies a holistic, 360-degree view of its financial situation. Our advisory CFO services team provides financial forecasting and financial planning insights to determine how your business decisions will affect growth in the short and long term. Outsourcing CFO services can save a business owner over a full-time CFO, but they also make sure that your firm has effective financial management and leadership.
François has a broad international experience—both in large listed groups (3i Group and Imerys) and in medium-sized French businesses with LBO structures—and is keen to work as a freelancer for international clients. While other financial professionals might focus on individual accounting tasks or data management, a CFO will provide high-level guidance based on your current data. The CFO will serve as a business strategist, helping you devise and track key performance indicators (KPIs) and ensure that your organization’s core processes remain aligned with your vision, values, and long-term goals. A C-Suite without an internal or full time CFO may sound like a new idea but it is the way of the future.
It is possible that your needs run deeper than just CFO-level insight. If you are not 100 percent confident that your finance department is providing your organization with a competitive advantage in your industry, you may want to consider a more comprehensive solution. The outsourced CFO service should be able to give you a 90 to 120-day roadmap of everything that will occur in this period. This roadmap is a crucial first piece in the engagement with the service provider. An outsourced CFO can also help to make sure you are ready for raising capital. Research your financial picture, prepare business plans, help with negotiations, and more.
Outsourcing CFO services, for example, allows you to tap into the benefits of a world-class CFO even if your business lacks the resources to hire in this advanced position. As a result, you’ll receive the same benefits of a full-time CFO — but at a price that a growing business can afford. CFO duties vary on an ongoing, monthly, quarterly and annual basis. The CFO’s main job is to provide strategic insight, guidance, support and coaching to clients in order to build a trusting relationship. An outsourced CFO has comprehensive knowledge of different markets, industries, and products, which makes them capable of predicting risks accurately.
Is an Outsourced CFO Valuable?
An outsourced CFO, or chief financial officer, is an expert who works with your business through a financial firm. A fractional CFO service allows you to hire a CFO on a part-time basis. This person brings all of the credentials of a regular CFO; however, they work remotely and offer support at a fraction of the cost of hiring for an executive-level position.
Outsourced CFO (Chief Financial Officer) services refer to the practice of hiring a professional financial expert or a team of experts who work remotely to provide financial services and advice to businesses. These services can include managing financial risks, creating budgets, forecasting financial trends, analyzing financial data, providing financial reports, and creating strategic plans to improve financial performance. Companies outsource many functions in today’s economy, including accounting, payroll, IT, and marketing. It also allows business owners to access that expertise as needed, rather than committing to a full-time in-house resource.
Outsourced CFO services add significant value to all types of businesses in numerous ways, including:
Here, outsourced CFO services support you in documenting financial proofs without hassle. The CFO has a comprehensive understanding of finances and finance-related laws. Outsourced services provide updated, high-level financial analysis of your cost and profits to help you strategize financial solutions. Outsourcing fractional CFO services is a superb way to get the financial guidance you need without breaking your budget. But it’s vital to understand what your fractional CFO should be responsible for before signing a contract. By understanding the scope of work, you can ensure that your outsourced CFO provides the services essential to maximize your business growth and success.
We’ve set a big revenue goal this year, and we want to make sure that we are on track to meet that. We are a full-service consulting firm dedicated to meeting your business’ financial service needs. We handle the planning and execution of a wide variety of imperative financial goals from the strategy phase to implementation.
- Below are two common examples of how some startups use outsourced CFOs in a counterproductive way.
- A CFO is well-versed in budgeting, forecasting, financial reporting and mon…
- While a group of CFOs in business together may not give you the certainty of which individual you’ll be working with, you do get some added benefits.
- For accelerated financial growth, each organization sector needs to function well and efficiently.
- Government resources can have serious strings attached, loans might carry high-interest rates or collateral needs, and VC funding might mean giving up a stake in your business.
Paying for a certain number of hours with a fractional CFO allows you to get the benefits of working with an experienced finance leader, at a much lower cost than hiring a full-time CFO. For small companies like startups, this can mean having access to a resource you otherwise wouldn’t be able to afford. Initially, however, they will manage your company’s accounting team and do much of the financial analysis themself to translate that data into meaningful insights. They will also be the primary point of contact for external financial partners, like your tax advisor, bankers, and investors.