Outsourced CFO Services - Top 5 Things to Consider
- Quadrant Advisory Team
Outsourced CFO services are a growing trend in the business world. It is estimated that more than half of all businesses are already letting outsourced providers handle their finances.
The most common reason for outsourcing a CFO is to increase the company’s performance. There are many benefits to hiring a CFO from an outside firm, such as cost savings and increased access to new talent.
Signs you need outsourced CFO services
An outsourced chief financial officer (CFO) is a finance executive that works outside of your company to provide your company with superior advice regarding its finances, accounting, business, and operational matters. It is possible to hire a CFO through an outsourcing service on a full-time, part-time, or interim basis for the length of the project.
Companies of various sizes, from startups to those backed by private equity, face unique issues, and in certain cases, outsourcing CFO services is the most effective solution. If you are one of the following, it makes sense to avail of outsourced CFO services:
- Your business is small or medium in size.
You have an in-depth understanding of your clientele and your offerings, but you pay less attention to the nuts and bolts of the business’s finances. Thus, you often rely on gut feelings instead of cold hard facts while making important business decisions. - You just started a business.
You just do not have enough time for budgeting, planning, and reviewing financial outcomes because your firm is flourishing, and you are juggling a lot of responsibilities at the same time. - You are having financial management problems.
You have a bookkeeper, you are still not confident in your ability to interpret the financial reports they generate. You know you need more knowledge and experience in financial analysis and planning, but you aren’t sure where to begin. - You’ve recently raised venture financing.
If you are working with vested partners you may need to provide investors with an update on your company’s key performance indicators, such as profit margins, lead generation expenses, and growth rates, but you’re not sure how to put all of this information together. - The company’s results are below expectations.
An outsider’s objective perspective can be invaluable in identifying problem areas and outlining necessary fixes for a struggling enterprise.
5 Things to Look for in Outsourced CFO Services
- Capacity for leadership.
The chief financial officer (CFO) you choose should be able to help your firm thrive. A CFO needs to be able to steer the team toward its goals without raising any hackles. - Expertise and passion for company growth.
Excellent outsourced CFO services are well-versed in more than just the financial side of things; he or she is also familiar with the ins and outs of your particular business’s sector. A CFO candidate’s chances of success increase if he or she is familiar with and invested in your company’s patrons and other constituencies. - Being reliable.
A great CFO requires expertise in areas beyond finance and accounting. You, as a top executive, will need to rely on them in a variety of capacities. You should feel confident that your CFO will be there to guide the company through challenging times. - Communication skills.
Any job requires teamwork, but executives like the CFO require it perhaps more than others. The person you choose to fill the role of the chief financial officer must have excellent verbal and written communication skills so that they can effectively interact with all members of the team. - Financial expertise.
A CFO position requires expertise in finance and financial management. Candidates with knowledge of investment, risk management, and accounting will be more attractive to many businesses.
If a business is booming, that doesn’t mean there aren’t challenges to be met. In a search for a CFO, probing questions that test a candidate’s ability to think critically about and find solutions to problems are a useful method to gauge their maturity and suitability for the role.
If the CFO isn’t a good cultural match for the company, they won’t go far in their leadership role. CFO candidates who are a good fit for your company’s culture are preferable because of the correlation between a person’s core values and their level of productivity.
Quadrant Advisory CFO Services
Quadrant Advisory partners with the best and brightest entrepreneurs and business leaders to help them achieve their goals through financial strategy. Quadrant Advisory is a leading provider of outsourced CFO services for Venture Capital firms, startups, and small to mid-sized companies. We get the math right.
Expert Financial Strategy
We work with our clients to develop and implement a custom strategy that fits their needs. We are experts in financial forecasting, budgeting and planning, cash flow analysis and restructuring.
Short and long-term forecasting
We forecast a company’s financial position for 3-5 years out so that you can make decisions about your investments more confidently and take advantage of opportunities as they arise.
Budgeting and planning
Our team will work with you to develop a budget and plan that aligns with your business objectives. We’ll then create reports that show the progress towards achieving those objectives, making it easier to see what areas need attention.
Analysis of Cash Flow and Restructuring
Understanding your current cash flow position is critical for making informed decisions about future investments. We perform a cash flow analysis as part of our services package with each client to identify opportunities for savings or revenue growth.
Our goal is to provide the highest quality services at the most affordable price in order to make your business successful. We can tailor our solutions to fit your needs with pricing that’s right for you. Contact Quadrant Advisory today for a free consultation!