Fractional CFOs can also work with businesses that have taken advantage of one of the pandemic relief programs. Properly accounting for the loans, grants, and credits can be challenging for small business owners. A CFO can help you create a strategic plan for how to use the funds. Some companies find it beneficial to engage a part-time CFO right from the start of the business, before they have the budget or need for a full-time CFO on staff. Other companies find themselves in need of a virtual CFO when they begin to experience substantial growth that brings more complex financial requirements and processes.

The list ranges from companies specializing in nonprofits, to eCommerce, to SaaS, to tech and more, each offering tailored services for your business needs. When you or your organization decides it is ready for a vCFO, let Decimal connect you with one of its trusted partners and help plan for your financial future. Aside from the services offered by the CFO firms for your business, you’ll also need to consider the knowledge and experience they have in your industry. They should understand how the industry works and what issues your company might encounter and follow the best practices to solve these issues and the processes in your industry. The first thing to consider is the reporting the CFO firm provides and how frequently. It can help you make better business decisions and manage your finances effectively.

Advantages of an Outsourced CFO

This will give you the confidence that you’re working with a qualified company or individual. Licensing also provides peace of mind that the relevant bodies approve the CFO to carry out their duties. However, it is beneficial if the prospective CFO has worked with companies in the same industry as you, as this means they have the experience to handle your type of problem. An outsourced CFO can establish rapport with the bank, thereby helping streamline how you do business regarding business transactions, special requests, and loans.

ORBA Cloud CFO can replace the equivalent of one full-time employee (plus, we often see an additional 20-30% savings in the finance department). For example, we also work with in-house CFOs, but recently one of our client’s CFO left and we simply increased our scope of work with the client to absorb the CFO’s former responsibilities. This was a win for our clients considering the current economic climate.

Is My Business Big Enough for CFO Services?

Outsourcing CFO services can provide entrepreneurs with the opportunity to … Well now that we have Escalon, our day to day operations are much easier for us to manage and much more efficient. And also, there’s far less mistakes, so it’s a big relief to all my board of directors.

Even if you don’t see your particular challenge or goal on our list, our CFOs can likely still help. Our outsourced CFOs are experts in financial strategy, industry analysis, optimizing systems, and maximizing profits. Whether you’re facing an existing challenge such as cash flow problems or sustaining growth or looking to achieve a goal such as raising capital or accelerating growth, our CFOs can help.

Case Study – A Private EMS Company Brings in Outsourced Team to Assist with Significant Growth

A CFO can also help identify the right time for a capital raise and ensure your books are in good shape before approaching lenders and investors. However, most companies wait until they experience substantial growth that presents complex financial processes and requirements to outsource a CFO. For example, companies experiencing rapid growth bring in a CFO to help manage the growth and cash flow, deploy proper processes, and budget for a corresponding increase in expenses. You aim to hire the best when finding candidates for your finance team opening, but those hires can always improve their skills. With outsourced CFO services, inexperienced finance teams can be trained and improve their financial literacy, elevating their skillset to be beyond industry standards.

• If you decide that your organization can benefit from an outsourced CFO, make sure to do your research and look at their industry experience before hiring them.
• This is especially difficult for less-traditional companies that have different financial needs.
• So first, they analyze your company’s financial situation and work with your executive team to establish challenging yet attainable goals and a system for measuring progress.
• One business could sell a product for $1.5 million but sell only five units in one year, while another might need 48,587 transactions to reach $10 million with an average transaction of $206.
• Licensing also provides peace of mind that the relevant bodies approve the CFO to carry out their duties.
• If you are considering hiring an outsourced CFO, here is a list of services you can expect to receive.
• The average CFO makes over $300,000 in annual salary, plus additional compensation in bonuses, equity, and perks.

As a startup, your finance needs are different from those of established businesses. ‍An outsourced CFO solution will use your financial results from previous periods to help predict how the company will perform over future months and years. This includes projecting your expenses and revenues across all key verticals, how your sales expenses will grow, and how many salespeople you’ll need to meet revenue targets. If you already have financial projections in place, an outsourced CFO can extend and maintain them. There are many reasons to need senior-level financial advice or management. When deciding on an in-house CFO and a virtual one, a business must consider its size, goals, as well as its present and future needs.

Download Your Free eBook: 5 Questions That Help Determine If You Need A CFO

However, having the financial discipline and expertise of a CFO is vital for any business, and a virtual CFO can bring that expertise within reach. A CFO can help determine when and how to raise capital—whether that’s in the form of taking on debt, bringing on a partner, or seeking investors. Your outsourced CFO will analyze the financial statements and determine your business’s financial information and performance over time.

When you hire ORBA Cloud CFO’s fractional CFO services the monthly fees start at $4,000 per month. That means you could see up to a 90% savings depending on how complex your financial requirements are. Because outsourced CFOs work with a number of clients at once, they bring cross-industry experience that offers a unique approach to your business. “To have a full-time CFO, we didn’t think that we could attract the right caliber of talent to be able to do that, being that we’re a small business. We’ve set a big revenue goal this year, and we want to make sure that we are on track to meet that. The implications of faulty financial inputs, including quantities, costs, margins, inventory, cash flows, and so on, can be profound, affecting profitability, market share, and access to capital.

How do you know when it’s time to hire a CFO?

If you prefer a more customized approach, Windes will partner with you to address your objectives. An Outsourced CFO or Fractional Chief Financial Officer is a part-time CFO for small to mid-size companies. It is a cost-effective way for businesses to utilize the services of a strategic financial professional, without the commitment or costs of hiring a full-time employee. Zeni is a next-generation, full-service financial firm that handles finance functions more cost-effectively and intelligently than traditional outsourced CFO solutions. A lot of people who engage the services of an outsourced CFO ask them to do their business’s day-to-day bookkeeping and accounting. This is a bit like having a samurai sword and using it to cut vegetables.

• If you are interested in hiring CFO services, Bennett Financials can help!
• This person is an experienced leader and trusted advisor who can perform all the same functions as a full-time CFO at a fraction of the cost.
• Since outsourced CFOs are independent contractors, they are more objective in their decisions.
• This will help you plan business activities and serve as the foundation for setting up financial goals.
• Whether you hire a part-time CFO, an interim CFO, an outsourced CFO, or a fractional CFO, this investment will take you one step closer to meeting your financial goals.

Amplēo provides business professionals, such as CFOs, CMOs, and CHROs, on a fractional basis in order to help organizations achieve their full potential. Finally, if your company’s finances aren’t going in the right direction, Amplēo’s turnaround and receivership services can help. Every business wants to stick around for the long haul—CFOs help make that dream a reality.

Outsourced CFOs have experience in that area and can help an organization, regardless of what kind of transaction takes place. Generally speaking, a Chief https://www.bookstime.com/articles/outsourced-cfo Financial Officer or CFO is one of the key leaders of an organization. Along with the CEO, they are responsible for overseeing the growth of the company.

• The best way to determine whether you need outsourced CFO services is to be honest about your company’s current financial situation, ongoing challenges, and long-term goals.
• The same applies to the finance function, but your accounting firm is not the place to turn to for help.
• An Outsourced CFO or Fractional Chief Financial Officer is a part-time CFO for small to mid-size companies.
• Along with the CEO, they are responsible for overseeing the growth of the company.
• For instance, this is how we group CFO services with robust accounting offerings here at Driven Insights .
• Our articles, quick tips, infographics and how-to guides can offer entrepreneurs the most up-to-date information they need to flourish.