CFO Outsourcing

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Startups often ask when to hire a CFO. Although every company is different, for many of our startup clients, an outsourced CFO is a good option if you don't plan on going public in the next 1-2 years.


CFO Services

It starts with small to medium-sized companies.  Companies that bring in anywhere from $500,000 to $5 million in revenue.  Smaller businesses can't afford to have somebody in-house handle their financial needs, unlike larger companies with in-house CFOs.  It's vital to have operational guidance for your business in certain key factors, so we will sit down with our CFO clients and discuss company goals.  Together we'll figure out your plans in a way you hadn't thought of before.  It's not just financial advice either.  It could be a question like “Where do you see yourself in the business in five years?”

We’ll look at the numbers and find out what's needed to get you to that place.  You may want to sell the business in five years.  How much do you want to make?  How much do you want to pay yourself for all the numbers to make sense?  We will look at many things and figure out how to get there.  

What are CFO Outsourced Services?

What the CFO does is the first thing we need to understand.

An organization's Chief Financial Officer is responsible for all aspects of its finances. The CFO manages teams that are responsible for keeping accurate, timely books and meeting your tax obligations. Strategically, your CFO will monitor the company's health and provide guidance to achieve your financial goals:

  • Keep track of your financial metrics and provide regular updates

  • KPIs should be reviewed and analyzed

  • Create a budget that works for you

  • Make financial forecasts

  • Develop growth plans for the future

  • Review of the board deck and creation of financial slides

  • Evaluate your financial hygiene regularly and recommend best practices

  • Make recommendations for improving your financial situation

Outsourced CFOs will perform the same strategic role for your company as in-house CFOs, but on a contract basis rather than as employees. Outsourced CFO services (also known as fractional CFOs or virtual CFOs) are typically billed hourly or by subscription.

Why Should I Outsource My CFO Services?

Finance professionals are an essential part of guiding business decisions, especially at startups whose founders lack a financial background. Why might outsourcing be the right choice for your startup or small business?

Outsourcing Saves Money

Full-time CFOs cost a lot of money. The average CFO earns over $300,000 a year in salary, plus bonuses, equity, and perks. Such a large investment in hiring is simply not feasible for many startups. There is a high opportunity cost, even if a company can absorb the expense - that's money that can't be invested elsewhere. That's where outsourcing comes into play. You can gain the benefits of working with an experienced finance leader at a much lower cost by hiring a fractional CFO for a certain number of hours. In small companies like startups, this can mean access to resources they would otherwise not have access to.

Outsourcing Saves Time

It's also important to consider what your company needs. Many early-stage companies are more likely to need a CFO for specific activities like forecasting, budgeting, and fundraising, which can all be handled by outsourced CFO services. A full-time CFO would be overkill for these companies.

Advantages of Outsourced CFO Services

Affordable Growth.

Many small companies cannot afford a full-time CFO. The benefits of virtual CFO services include access to CFO-level expertise and growth strategies at a fraction of the cost.

Greater Flexibility.

Startups move fast, so what you need today may not be relevant tomorrow. The flexibility of outsourced CFO services allows you to adjust your engagement as your company grows.

Outside Perspective. 

A new perspective is brought to the table by an outsourced CFO. They're able to evaluate your numbers objectively against your market's benchmarks because they aren't involved in your day-to-day operations. As fractional CFOs work with many clients in their area of expertise, they can also apply insights derived from a wider range of experiences to your business.