The Ways That An Outsourced CFO Can Improve Your Finance Function

Business

The CFO role in modern businesses has changed. CFOs are business all-rounders and key-decision makers who become crucial when it comes to executing and formulating strategies. 

Today CFOs in large companies have many responsibilities from procurement, strategic planning, commercial activities, I.T, M&A, partnerships, pricing deals, and in certain cases marketing. Even though they still perform the role of taking care of standard financial activities (financial accounting, tax, etc), CEO’s and shareholders expect CFOs to possess versatile knowledge and business skills an act as valuable partners and advisors to a company. 

The “commercial” aspect of financial functions is something that is frequently overlooked by the smaller businesses, who often regard their finance teams as the overhead when it comes to paying staff, bills, managing cash flow, tax, and invoicing. For this reason, many business owners miss out on the opportunity to advance their companies to another level. 

The 3 Tiers Of Finance Support In A Business

  1. Booking Keeping

Process-driven, AR, AP, Payroll, BAS, Reconciliations, and Invoicing. These are the minimum in order to fulfill all statutory obligations. 

  1. Accountant 

Basic planning, financial reporting, forecast/budget, tax, and cash-flow forecasting. This is typically aimed at historical information which includes month-end reporting. 

CFO

Operational metrics and performance, marketing ROI, headcount planning, and to optimize sales and inventory performance. 

Financial planning -forecast and budget, and cash flow. These goals focus on future events rather than on the past. 

Strategic planning – product strategy, objectives, crucial success factors, business-model investment for the future. 

Decision support – pricing deals, market modeling, new or updated business models, etc. 

Structure – optimize corporate and capital structures and reduce tax.

Experienced CFOs will always implement a long term plan, monitor critical activities and performance, along with executing on objectives. 

Does your business have the required support in order to reach all your objectives?

Many small businesses will often reach a crucial juncture where opportunities emerge where they should be focusing on growth. Yet they can lack the skills to focus, plan, or even act on such opportunities. 

A skilled and experienced CFO (commercial finance person) can contribute greatly when it comes to helping you to achieve growth ambitions for your business. Paying out $150K to $200K p/a for this resource might not be possible at the moment. But using a virtual CFO to work 1 to 2 days a week can help you to improve commercials without putting you out of pocket. 

Shaila Chamerlain, based in Riverside, CA provides outsourced, part-time CFO advisory and CFO services. Contact us today for your free consultation.

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