When you start a new business, initially, it’s up to you to wear all the hats. From baseball cap to cowboy hat, or - from sales, operations, and customer relations to financial planning and everything in between - all business decisions are yours to make.

But as your company grows, you’ll need to build your team, fleshing it out with appropriate segment experts to ensure its success. One key person to add is a Chief Financial Officer (CFO).

Now, you might think there’s no way your business has an appetite for a permanent, full-time CFO. And, you might be right. But, you may have an appetite for an Outsourced CFO.

An Outsourced CFO, also known as a Fractional CFO or Interim CFO, is a financial professional who provides Chief Financial Officer (CFO) services to organizations on a part-time, as needed, or temporary basis. Instead of being an in-house, full-time employee, an Outsourced CFO is typically hired on a contract or consulting basis. The primary role of an outsourced CFO is to provide high-level financial leadership, strategic guidance, and expertise to help businesses with their financial management and decision-making.

If your business requires part-time CFO services, a Fractional CFO may be best. These professionals work with your business part-time, on an ongoing basis. This type of engagement allows you to tailor services to your organization’s exact needs, maximizing your investment.

If your business requires full-time, short-term assistance, an Interim CFO is likely best. These professionals provide temporary services and are typically leveraged by organizations who are between permanent, full-time CFOs.

The specific tasks and responsibilities of an outsourced CFO can vary depending on the needs of the client and the industry they operate in. Outsourced CFOs are often experienced financial professionals who provide high-level financial expertise and strategic guidance to help businesses make informed financial decisions and improve their overall financial health, all without the commitment and expense of hiring a full-time CFO.

Outsourced CFO services help owners address a variety of business opportunities, including:

1. Business Planning: Outsourced CFOs contribute to long-term business planning, helping the company set financial goals and strategies for growth and sustainability.
2. Financial Strategy: An outsourced CFO helps develop and execute financial strategies that align with the organization's business goals. This includes financial planning, budgeting, and forecasting.
3. Fundraising and Financing: They assist in raising capital for the business, whether through traditional loans, venture capital, private equity, or other means.
4. Financial Compliance: They ensure that the company complies with all relevant financial regulations and tax requirements.
5. Risk Management: They assess financial risks and develop strategies to mitigate them. This may involve managing debt, insurance, or other financial instruments.
6. Systems and Process Improvement: They review and improve financial processes and systems to increase efficiency and accuracy.
7. Strategic Decision Support: They offer financial insights and analysis to support strategic decision-making by the business's leadership team.
8. Exit Planning: For businesses looking to sell or transition, an outsourced CFO will help with exit planning and financial readiness.

Using an outsourced CFO provides numerous benefits to businesses, especially small and mid-sized companies. Here are some of the key advantages:

A permanent, full-time CFO is expensive, with total employer burden running an average of $600k per year. And, many small to mid sized businesses simply do not require a permanent, full time CFO, making it difficult to realize the full benefit of that expense.

Great news!! An outsourced CFO doesn’t require an in-house CFO's salary, incentives, and benefits.

Instead, you pay only for services you need, allowing you to leverage a financial expert in the most cost effective manner.

As your business grows, its financial needs will change. With an outsourced CFO, your engagement will be adjusted to accommodate your growing business’s needs, allowing you to flex up, or down, while still receiving the required financial expertise.

While your CFO will handle many different financial tasks, the most impactful outsourced CFO services provide sound financial advice, mitigating expenses, optimizing profitability and cash position, while facilitating diversification and growth.

These CFOs have years of experience helping business owners across various industries and know the best strategies for your business to follow. And, their expertise extends beyond the financial realm, allowing them to operate as a true partner and facilitator.

An outsourced CFO will provide your business assistance in mitigating various risks. You’ve worked tirelessly for your business to succeed. Why risk it by not properly hedging exposure?

Your outsourced CFO may:

· Establish internal controls, mitigating regulatory and compliance risks

· Balance capital structure and financing strategies

· Hedge currency exchange rate and market volatility risks

· Identify and mitigate supplier and logistics risks

· Procure appropriate insurance policies, mitigating damages and liabilities

· Develop and implement disaster recovery and business continuity plan

Financial forecasts are key in planning for the future. An outsourced CFO will use your organization’s historical performance, industry benchmarking, market conditions, and nuances associated with your sector to create a robust financial strategy for your business, optimizing revenues, mitigating expenses, and maximizing returns.

Without appropriate planning, your business could miss significant opportunities for segment diversification, margin accretion, and expense mitigation, resulting in reduced profitability and cash flow.

You’ve worked too hard to leave money on the table.

Your outsourced CFO should be an integral business partner. Working closely with you to understand your business – your Mission, your Vision, and your Values. They should be philosophically and strategically aligned, and act as a key facilitator, working with various stakeholders to operationalize your vision, while managing your financial strategy. Ensuring your business is properly positioned for longevity and success.

Leveraging an outsourced CFO is an incredible, cost-effective way to secure the financial expertise needed to maximize your business.

Excited?! Ready to chat through your business’s opportunities with a  partner dedicated to your success? Schedule a consultation with The William Stanley CFO Group today.