Carlos Fox
Journal is powered by Vocal creators. You support Carlos Fox by reading, sharing and tipping stories... more

Journal is powered by Vocal.
Vocal is a platform that provides storytelling tools and engaged communities for writers, musicians, filmmakers, podcasters, and other creators to get discovered and fund their creativity.

How does Vocal work?
Creators share their stories on Vocal’s communities. In return, creators earn money when they are tipped and when their stories are read.

How do I join Vocal?
Vocal welcomes creators of all shapes and sizes. Join for free and start creating.

To learn more about Vocal, visit our resources.

Show less

How Outsourcing Your CFO Can Benefit Your Business

Growing businesses often reach a point where they need professional financial advice.

Outsourcing parts of a business can have some great benefits in general. These typically include reduced costs, expert assistance, and getting work done outside of normal operating hours. It’s common to see things like call centers, IT departments, and human resources outsourced to other companies. A department like accounting, or especially a position as important as the CFO, may seem a little unusual compared to those other options. The truth, however, is that outsourcing this position can reduce the time it takes to make big decisions, increase profitability, and lead to improved CFO advisory services.

You’ll need to understand what exactly a CFO does in order to see how the benefits of outsourcing are possible. The CFO basically manages all of the financial aspects of a business. This comes down to a few key responsibilities.

CFO Tasks

The biggest responsibility of a CFO is to monitor the financial risk the company takes on at all times. This chiefly comes down to analyzing the company’s financial strengths and weaknesses and striking a favorable balance between debt and profit.

The CFO also oversees the overall efficiency of each aspect of the company to cut costs and maximize profitability. This is accomplished through performance monitoring, careful planning of revenue possibilities, and maintaining an effective budget.

The CFO has a hand in the long term success of any business in that they help direct the company’s future with a long term financial plan. There is more to a CFO’s job description, but this covers the basics. Suffice it to say, this is a high demand job requiring expert experience. With that being said, it may seem that it’s an unlikely job to outsource, but there are some concrete benefits.

Reduced Costs

This is one of the primary benefits of outsourcing any position. A skilled and experienced CFO can be outsourced at an hourly rate that is significantly cheaper than most companies would pay for an around the clock CFO. Outsourced CFOs can also be switched out easily, so you can find the best match for your company. Less time spent focusing on accounting in house will also free your staff up for other work and allow you to focus on core business strategies.

Minimal Risk

For newer businesses in particular, outsourcing a CFO is a good option because of its low risk. Businesses looking to grow often have more complex financial needs than a simple bookkeeper can meet, and an outsourced CFO can address these needs for a price that smaller businesses can handle.

Better and Faster Decisions

A high level of experience in all fields is another potential benefit of outsourcing a CFO. CFOs working for outsourcing companies have been involved with all kinds of businesses in all kinds of conditions. It’s unlikely that you’ll have a situation they don’t know how to deal with. You’re getting the same expertise you would from a salaried CFO but at an hourly or project based rate.

This experience will allow them to make the best decisions for your business as possible quickly. They’ll also be up to date on constantly changing laws and regulations.

Long Term Improvements

Lastly, it’s important to remember that even hiring a temporary CFO can have long term positive effects on your business. Even after the outsourced CFO is gone, any improvements they made to your business are yours to keep. In a brief window, you can gain new financial strategies, more efficient systems, and greater profitability for the long haul.

If you plan to hire a permanent CFO later, the interim CFO can help get them up to speed on your company and what is expected. With little risk and comparatively little cost, an outsourced CFO can improve your business beyond expectations.

Now Reading
How Outsourcing Your CFO Can Benefit Your Business
Read Next
Why Should You Be a Time Management Ninja?