Outsourcing the role of Chief Financial Officer has become a popular trend amongst businesses of all sizes for a number of reasons, from cost savings to growth aspirations. But it’s not the right choice for every organization. The decision to insource or outsource is a tricky one depending on the trajectory and day-to-day reality of your business, so let’s outline some of the signs you should look out for to determine whether outsourcing is the right choice for your needs.  

You're Growing Fast

High growth periods can be very challenging for a small business, and you can quickly find yourself falling behind on your finances. Using the wrong metrics or relying on erroneous financial reporting can be a critical blow to your business when it is most vulnerable, and it can be easy to miss mistakes when everything around you is moving so fast. The steady hand of an outsourced CFO can ensure your business is financially stable as it continues to grow. An outsourced CFO can provide guidance on how to grow your business effectively and offer input on the financial viability of key issues like whether to expand your team or strike a partnership with another firm. An outsourced CFO has seen it all before, and they are more than equipped to help your business accomplish its goals and safely navigate growth stages. 

You Can't Afford a Full-Time CFO

It’s no secret that a full-time chief financial officer represents a massive investment for any business that sometimes just isn’t feasible, particularly in times of market volatility. 

Financial constraints are no reason to miss out on the expert advice a CFO can deliver. Outsourced CFOs provide outstanding expertise at a fraction of the cost of a full-time employee, allowing you to save without skimping. Beyond ensuring the financial health of your organization, an outsourced CFO should serve as a trusted business partner that can help define your vision and provide meaningful feedback during pivotal periods in your growth. 

You're Losing Sleep Over Your Finances

Running a small business isn’t easy, and it’s even more difficult when you are overseeing every aspect of your firm. Are you sick and tired of spending time on making sure your books are in order or making sure your cash flow is where it needs to be? With an outsourced CFO, you can focus on what you do best for your business, and leave your finances to a seasoned expert who can provide actionable insights and reliable results.

You Have An Accuracy Problem

Incorrect books or financial statements are a massive problem for any business, but small businesses are especially prone to these errors. Unfortunately, the consequences can be dire. In fact, 82% of small businesses fail because of poor cash management. You’ll want to ensure that your business is financially healthy and relying on accurate information. For many small businesses, hiring an outsourced CFO to oversee your finances is a perfect solution. 

In addition to providing perfect clarity into your finances, an outsourced CFO can also chart the course for accuracy in the future. When you hire an outsourced CFO, you don’t just get access to the person. You get access to their software, methodology, and thought processes. This enables business owners to absorb knowledge and information that may help them better run their business in the future, and at a minimum, develop a nuanced understanding of their finances at present.

You Have a Big Project Coming Up

The beauty of an outsourced CFO is that they don’t need to stay on board forever.  Many businesses find it very useful to work with an agency for a set period of time, especially if you have a big project or change coming up. If you like the work your outsourced CFO does, you can keep them on board for the long haul. 

An outsourced CFO can also serve as a stop-gap between two full-time CFOs. The hiring process can be arduous and time-consuming, and it's critical that you don’t settle for less when filling a role as important as that of a CFO.  

* * * * 

Running a business is incredibly challenging, and every owner can use a helping hand. Whether your business is embarking on a stage of high growth, or just needs increased financial visibility and accuracy, an outsourced CFO can be an excellent investment. finairo offers best-in-class outsourced CFO services that provide businesses like yours with actionable, data-driven financial insights.

Request a consultation to learn more about how finairo can help empower your business through accurate, timely, and insightful financial practices.