Is an Outsourced CFO Right for Your Small Business?

If your small business is growing and you are starting to feel the pinch of not having a dedicated financial leader, then it might be time to consider hiring an outsourced CFO.

What is a CFO Responsible For?

The role of the chief financial officer is to provide financial leadership for an organization. They are responsible for financial planning, debt management, and investment strategy. They also oversee the preparation of financial statements and tax filings. For small businesses, this position is sometimes outsourced to save on costs.

These are 3 signs that indicate it’s time to hire a CFO:

1. Your Small Business is Growing 

Small businesses typically don’t need full-time CFOs because they can not afford the salary or they don’t have enough work for them. However, as your business grows and becomes more complex, you may find that you need someone to provide financial leadership. You may need outsourced professional financial help if your business is expanding into new markets, developing new products, or raising capital. These are all complex endeavors that require financial expertise. Having an outsourced financial expert can help you navigate these waters and make sound financial decisions. They can also help you develop financial models and projections to assess the viability of your new venture. 

2. You Don’t Have the Bandwidth

As a proprietor of a small enterprise, you have multiple roles to play. You are responsible for the day-to-day operations, sales, marketing, and often, the finances. At a certain point, you may find that you don’t have the bandwidth to wear all of these hats and do each job effectively. This is especially true when it comes to financial leadership. If you find yourself pulled in too many directions and you’re struggling to keep up with the day-to-day financial tasks, then it might be time to hire an outsourced CFO. Free up your time so that you can focus on other aspects of your business while taking the financial burden off of your shoulders. They can help you develop systems and processes to streamline the financial management of your business. 

3. You’re Not Seeing the Big Picture 

When you’re bogged down in the day-to-day details, it’s hard to step back and see the big picture. This can lead to making short-sighted decisions that may not be in the best interest of your business. An outsider who is experienced in financial management can help you take a bird’s eye view of your business. They can help you develop long-term financial goals and create a plan to achieve them. They can also help you assess your current financial situation and make recommendations for improvement.

Closing Statement

If you are a small business facing any of the above challenges, then it might be time to seek an outsourced CFO. This can help you take your business to the next level. 

We are a leading provider of financial services for your business. Our team of experts can provide the financial leadership you need for your small business to flourish. Contact us today!