Best Practice Cash Flow and Financial Planning Management Fundamentals for 2021
7 Powerful Reasons to Outsource
Small to medium-sized entrepreneurial businesses reach a point in their growth when they need in-depth data and expertise to plan for the future, measure risk, improve performance and profits, secure company financial health, and grow. Typically, this role is filled by a full-time Chief Financial Officer.
However, times have changed and today’s SMBs no longer need to hire a full-time employee. They can tap into the expertise of an experienced CFO without putting them on the payroll and enjoy substantial benefits.
Significant Cost Savings
Hiring a full-time Chief Financial Officer is a huge financial commitment. The average CFO salary in Canada is about $237,000, a significant burden for smaller companies with fewer resources.
Outsourcing CFO services is considerably less expensive as it is handled remotely. You’re not paying employee benefits, commissions, bonuses, or profit-sharing incentives. You can also scale up your services as your business grows to minimize expenses.
Collaborative Strategic Planning
Business owners often know what they want to achieve, but the financial steps to reach their goals are less clear. Gleaning meaning from financial data is where a CFO shines. They can spot weaknesses, recommend improvements, and capitalize on strengths.
This process can include developing and implementing KPIs to hit performance and growth objectives, forecasting and budgeting, and other strategies to help your company gain traction.
Understandable Information at Your Fingertips
Data becomes increasingly important as a company grows, but the financial reports generated by bookkeeping only record transactions. They don’t explain where your business stands now and where it is headed.
Conversely, an outsourced CFO tailors reports to provide the insights you need. They translate in-depth financial data into understandable information you can use to make informed decisions.
Dedicated Financial Oversight
Business owners wear many hats and rarely have time to dwell on finances. An outsourced CFO is dedicated to the big financial picture so you can focus on growing your business.
They’re highly-experienced, accredited in their industry, and follow best practices. They only work with financials and are better at the work.
Financial complexity increases as your business grows. Nonetheless, your business needs to maintain internal controls to ensure compliance, accuracy, and data security.
Your CFO ensures your company has the checks and balances are in place and they provide independent oversight over in-house operations to deter fraud.
Without financial accountability it is almost impossible to secure capital as your business grows. This information is also vital during mergers and acquisitions and when reporting to partners, investors, and shareholders.
Superior Risk Management
CFO services can help your company identify and manage risks such as tax non-compliance which can incur hefty penalties, debt risk that can threaten company survival, liquidity risk that endangers cash flow, and more.
Your CFO can perform a cash flow analysis, help you manage expenses, and show you how to minimize your risk.
An outsourced CFO is dedicated to the success of your company and available beyond traditional 9 to 5 hours. You don’t need to go through an exhaustive hiring process or pay a huge salary. You can start working with a CFO with deep industry experience immediately.
The experienced CFOs at PubCo Reporting Solutions have a proven financial background, strong accreditations, and glowing testimonials. They work collaboratively with your business and their partners to provide a first-class experience.
If you’re interested in exploring outsourced CFO services, contact us for a free consultation.
Let us help you succeed.