As businesses grow, owners find themselves having to make more financial decisions, analyze more financial data, and answer more and more complicated financial questions. It’s rare to find the level of financial expertise that these actions require already available inside a small- or even medium-sized business. Still, these questions must be answered and these decisions need to be made.
That’s why outsourcing CFO services make sense for many young businesses. The company benefits from the services of a CFO without investing in a full-time position. An outsourced CFO can provide:
Short- and long-term financial forecasting. Developing budgets, controlling costs, and forecasting revenue are required to operate a successful business. An outsourced CFO can help a business owner develop both short- and long-term models to project sales, profitability, or desired gross or net margins.
Financial risk analysis. A part-time CFO can help businesses manage their exposure to financial risk, such as analyzing credit risk to reduce defaults, or reviewing market risk to manage potential losses stemming from changes in rates, commodity prices, or other market shifts.
Risk planning. Once the risk analysis is conducted, an outsourced CFO can develop a plan to avoid or mitigate potential risks. The plan would outline the business’s risks and detail its ability to tolerate those risks. For example, the CFO might recommend establishing a specific cash reserve for emergencies, augmented by appropriate insurance policies.
Succession planning. One of the most difficult areas for business owners to address is passing the company on to the next generation of owners or managers. An outside CFO can provide a valuable and independent perspective to establish a succession plan, including developing new leadership, passing the company on to heirs, selling the company, or other strategies. There are a wide variety of options for passing on a business, and a CFO can help evaluate all options, even some the owner may not have considered.
An external CFO resource can give your company a new level of confidence in making decisions. For more information about the benefits of a part-time CFO, contact CFO Strategic Partners at 407-426-8288 for a free consultation.
Tags: Cfo Services, Commodity Prices, Controlling Costs, Credit Risk, Financial Decisions, Financial Expertise, Financial Forecasting, Financial Questions, Financial Risk Analysis, Independent Perspective, Insurance Policies, Market Risk, Market Shifts, Medium Sized Business, Net Margins, Part Time Cfo, Succession Plan, Succession Planning, Term Models, Time Position
“Our organization was navigating an intense transition involving our government funding partners and public officials. Without the help of CFOSP, we would have experienced severe financial impacts and certainly lost donor confidence.”
CEO Central Florida Historical Society
“I applaud the stellar support provided by our CFO in embracing and understanding our budget priorities and operations that entail hundreds of financial transactions each month and several millions of dollars in expenditures annually. The nature of our business is very complex, yet your firm did not shy away from the challenge of establishing accounting processes and procedures that will sustain us well into the future.”
Kissimmee Chamber of Commerce, Experience Kissimmee
“…The services they have provided have tripled my bottom line, giving us serious profit levels that have helped fund company growth…”
President, Engineering Firm
“There is no limit to the value of the collective experience that the CFO team brings to the table. Their expertise in debt management, tax reporting, cost of funds, and in-depth analysis has been more than I could have hoped for…”
CEO/President, Hotel Corporation
“Since we began working with CFO Strategic Partners, we’re in the best financial position we’ve ever been in… CFO gives my staff and myself financial peace of mind so we can focus on clients and business at hand.”
CEO, Insurance Agency
“With CFO as our partner, we’re able to see the total picture…. Through their expertise, we’re receiving the highest level of educated financial planning that will propel us into the future.”
President, Florida Architectural Firm