What is an Outsourced CFO?Posted by Martin Thomas on December 14th, 2019 An Outsourced CFO is a financial expert that creates and provides strategic financial services. In today's economic conditions, companies hire an experienced Outsourced CFO because it has a very big role who mainly responsible for overseeing the financial activities of an organization, analyze the financial strengths and weaknesses, and suggest plans for improvement that influence the present and future growth of the company. Outsourced CFO provides part-time expertise in helping organizations with financial mapping, expense control, and risk management. Small businesses hire a well-established, experienced Outsourced CFOs to oversee their accounting and financial functions. Duties of an Outsourced CFOThere are several Outsourced CFO duties, and services include:
Benefits of Outsourced CFO ServicesMost of the business owners prefer to outsource their CFO services. Here are some benefits of outsourcing CFO services, check them: 1. AffordabilityThe on-an-average salary of an in-house CFO is around 20-21 lacs a year. Now, outsourcing the services will just half the cost; also, the company can get the knowledge and experience of a CFO at a fraction of a cost 2. Increases RevenueAn Outsourced CFO is not just taking care of financial or balancing the books, but also produce better results by negotiating lower costs with vendors, offer transparency in bookkeeping and accounts, cost-cutting on the unwanted and unnecessary expenses and increase the production of the company by creating plans and strategies. 3. Improve Time ManagementBy using Outsourced CFO services, companies can put more time and effort into running the business, and the bookkeeping process remains on the shoulders of skilled financial champions. 4. Easy Tax TimeAn Outsourced CFO makes tax time easier with the regularly organized bookkeeping as pulling together all the necessary paperwork properly. 5. Master Advisory Role on DemandLearning financial management directly can prove to be a difficult task. With an Outsourced CFO, expert advice can get directions, and this will be helpful in developing long-term strategies. How to be a CFO?To be a CFO, it requires a lot of financial experience, analysis skills, risk management, and deep knowledge of accounting principles. Having solid financial knowledge and experience helps in taking better steps making decisions and judgments. This route requires a supportive and effective mentor that creates a futuristic CFO by providing valuable training and job shadowing. The CFO career journey is not easy. It requires certain certifications and an advanced degree, CPA license; Masters in Business Administration is an advantage and helps in increasing the business and operational understanding, and all these qualities prepare for expanded roles in the future. Conclusion The whole assessment summarizes an Outsourced CFO and the importance of CFO in small organizations. Outsourced CFO services provide spot-on, quality financial analysis to help the companies in planning strategies and help in improving the financial concerns. Outsourced CFO is proved to be an important asset for the companies as it provides better and qualitative services as compare to in-house and full-time CFO. This report also concludes the benefits of Outsourced CFO and some important facts that help in becoming a successful and well-established CFO in the future. Like it? Share it! |