Why You Should Consider Outsourcing Your CFO
In today’s world, it’s become commonplace for companies to contract out certain types of work as a way to save money. But have you ever considered looking outside your organization for CFO services?
The Role of the CFO
A CFO, or Chief Financial Officer, plays a key role in a company’s financial strategy. Judging by the title alone, it’s easy to understand why it has traditionally been a full-time, in-house position. But as the business world evolves, more and more companies are realizing that outsourcing CFO services can save a great deal of money, and offer fresh insights into their financial health.
Why CFO Consulting
CFO consulting services are far more affordable than paying a full-time employee with similar responsibilities. For many types of businesses, having a CFO on staff is not a justifiable expense—but that doesn’t mean they should be cut from the budget altogether. Hiring a CFO consultant is a happy medium; he or she will advise you on key decisions to run your business effectively, but only when you actually need those insights. Chances are, that’s not going to be a nine-to-five necessity.
The most important financial decisions are likely to correspond with important times in the fiscal year. So, your outsourced CFO might do most of their work as you plan for the upcoming year. Or, you might hire a CFO consultant on an as-needed basis, like when your company is getting ready to make a large investment. This “on-demand” financial consulting model allows you to save money while still receiving the insights you need.
Another key benefit of outsourcing your CFO is the unbiased, fresh perspective they offer. When you have an in-house CFO on your executive team, politics and personal influences can play a part in financial decision-making. You also run the risk of overlooking red flags, intentionally or not. Hiring an outside financial advisor brings a new set of eyes to your business decisions, keeps all players accountable, and helps find creative solutions to the financial issues you face.
As the head of your business, it’s up to you to decide whether or not hiring a CFO consultant is the right decision. To learn more, contact us today.