Benefits of an Outsourced CFO
Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity that is or could be done internally. Therefore, when it comes to outsourcing your business duties, the first areas that might come to mind are most likely payroll, accounting, HR, or other similar tasks; leaving C-level outsource roles as one of the last things to present itself – but in fact, these functions are just as suitable for outsourcing.
In particular, a chief financial officer (CFO) is the senior executive responsible for managing the financial actions of a company. Their duties include tracking cash flow and financial planning as well as analyzing the company’s financial strengths and weaknesses. Subsequently, an outsourced CFO is someone who aims to see the future and takes proactive measures that keep things running smoothly. They may analyze risks, strategize, investigate cost and process improvements, study the industry, and stand ready to be accountable for the financials and other key issues.
In consideration of the name itself, an outsourced CFO is exactly what it sounds like. They are financial whizzes who offer their services to outside companies. Occasionally they are also known as fractional executives, who typically work for different companies that offer executive-as-a-service hiring. Similar to any outsourcing professional, outsourced CFOs predictably have a wide range of experiences, work histories, and capabilities that are significantly beneficial to your business in many ways.
Depending on your business’s current finance and planning needs, an outsourced CFO allows for the flexibility of determining how often you will need to use their services. Unlike a full-time employee, an outsourced CFO permits you to scale back in times where your business might be less demanding – which is easier than firing. Additionally, it can also be a wise decision for your company during times of fast growth. With your business fluctuating up or down throughout the year, having an outsourced CFO gives you the luxury of making otherwise difficult decisions, simple.
Another benefit of having an outsourced CFO is the cost of hiring one in comparison to hiring an actual full-time employee. It means you avoid paying for all the things that typically go along with a full-time employee such as benefits, increased office space, equipment, etc. Hiring an outsourced CFO can cost significantly less than paying someone to take on the position full-time.
Along with not having to pay the high price tag of a full-time CFO, organizations may also hire an outsourced CFO because of their expertise and knowledge. This comes as a huge benefit for smaller businesses since an outsourced CFO is able to provide valuable expertise that they might not be able to get from the level of a regular full-time CFO employee. Having a resource that they otherwise are unable to afford, especially during times of uncertainty is an immense perk.
In short, outsourcing your CFO role is more achievable than you might think! As a business owner, one action that you can take to ensure the stability of your company is to find a CFO who helps your business run smoothly, in any circumstance. And when you have the right partner on your side, the benefits are twofold. Let AAJF be your outsourced CFO. With years of experience in management and accounting across different industries, AAJF is adaptable and has the experience and knowledge to help you make informed decisions. We are business owners talking to other business owners and care about your business as if it were our own.
Arias, Arias & Jasko Financial has been serving Florida and operating out of Fort Lauderdale since 2012. Arias, Arias & Jasko Financial takes pride in working with the owners and partners of small to medium-sized businesses to achieve their vision.
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The articles we share are items of interest and related to some questions we have answered in the past. If you have a question or would like to schedule an appointment please contact us at 954-650-1825.