It is tempting for a business to look to hire an accounting all-rounder, who can manage an assortment of financial tasks, such as, taxation, compliance, reporting, accounting, and business strategy. However finding an accountant who can manage all aspects of the financial mix is both rare and expensive. What is the difference between a CFO and an accountant, and how will adding a CFO Service help.
Over the past two years, many industries were financially impacted by Covid-19, in ways nobody could possibly have predicted. However, as in the last financial crisis in 2007-08, the best performing companies looked to improve productivity, which provided the capacity to grow quickly once into the recovery period.
There is no doubt that hiring a full time Chief Financial Officer (CFO) makes complete sense when a business reaches a certain size or an advanced level of complexity in structure. There is also no question that a CFO occupies a crucial role in growing a business’ profitability, especially in the longer term. The decision facing business owners, is when is the right time to bring on a full-time CFO or whether there are benefits to having a part-time or outsourced CFO until a full-time CFO role stacks up financially.
Most small to medium sized businesses (SMB's), whatever their business sector or the types of products they produce, or services they offer, face the same challenge at some point in their lifecycle. They all need help with their financial reporting. Entrepreneurs who start businesses are fantastic at identifying opportunities and the need for new products and services and can talk for hours about what they are working on and the opportunities they have identified. However, when faced with financial reporting and compliance, they are often uninterested and lack understanding.
Over the past two years, many industries have been financially impacted by the Covid-19, in ways nobody could possibly have predicted. However, as in the last financial crisis in 2007-08, the best performing companies looked to improve productivity, which provided the capacity to grow quickly once into the recovery period.
The reason why a business should have an outsourced CFO is that they offer ‘strategic financial insight and manoeuvring that leads to increased revenue, without the need to pay a full-time CFO salary.’
There are very few business owners who wouldn’t welcome expert financial advice and financial help if it was available, as good financial advice and financial management are keys to success for any business, small or large.
A CFO can make a huge difference in the way a business grows and how it operates on a day-to-day basis, as well as having a dramatic impact on the financial strategy, including forward planning, capital raising, borrowing, financial and tax planning, compliance, and business owner exit. It is hard to disagree a chief financial officer or CFO services don’t add significantly to a business.
Outsourcing CFO services will give companies all the benefits of having a highly skilled and experienced Chief Financial Officer (CFO) on their team, but at a much-reduced cost.
There is a common misconception out there that a Chief Financial Officer (CFO) is a role only available to the large corporate. However, if you continue to hold this view you could be doing your business a critical injustice. Having the commercial guidance that a CFO can provide to get your business from where you are now to where you want to be is one of the best investments a business owner can make.
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