For any company to be successful as it plans its future alongside a changing market and strengthening competition, it is important that all departments are functioning to optimum levels. This can be said particularly of the chief financial officer (CFO), an individual who is tasked with managing and planning all financial elements inside the business.
Whilst it is not common practice in many cultures or sectors of the business community, more and more brands are looking at an outsourced CFO as a legitimate option moving forward.
Think of it as a revolutionary model that is throwing convention out the window, but it is a tactic that is garnering more support and has seen significant success throughout the commerce field.
In 2018, there is as much as focus today on cutting out the element of risk as there is on taking advantage of opportunities that present themselves. To achieve these targets, the acquisition of an outsourced CFO should be a genuine option on the table that a CEO, board of directors or hierarchy should seriously consider.
Here we will discuss the tangible benefits for those brands that are embracing an alternative to the norm when it comes to the role of their chief financial officer.
Saving on Cost
The majority of those who are taken as an outsourced CFO will accept the position on a part-time or casual basis where they are not expected to report on a 40-hour working week. During meetings and consultations where an audit has to take place or there are serious financial considerations to be made regarding an investment or project, then they can offer their insight when called upon. Some professionals in this regard are viewed as causal hires who are utilised for a specific purpose before being moved on. Without a long-term contract, they can be replaced should the circumstances call for it.
An outsourced CFO can help shape the direction of your company without knowing all of the internal politics and conflicts that are occurring behind the scenes. Viewing strategic decisions from a distance without any preconceptions, these officers have the capability of offering advice and expertise on funding, portfolios and investments that others would normally compromise by being too close to the action and the characters that can complicate proceedings.
Stronger Financially Focused Outcomes
Another serious strength of embracing the outsourced CFO option is bringing aboard an individual whose sole purpose is to impress within a single parameter. From the deliver of certified financial statements to analysis papers and cost saving advice that is pertinent to the brand, this specialist can keep separated from external matters of the business to deliver purely for one simple framework of the brand.
Eliminating Risk Exposure
Managing cash flow and monitoring investments and accounts is a serious department of any business. To compromise that is to compromise the organisation from top to bottom and with an internal CFO, there is a higher risk of exposure when it comes to locating data and storing information. An outsourced CFO can cut down on that risk by working from arm’s length where the tangible and intangible elements of the business are kept secretive and discretion can be upheld. In some cases the outsourced CFO is brought on site but in many instances, they will keep their records private.
Before proceeding with an outsourced CFO, it is vital that a background check with references is conducted before sitting down for an interview. Should an internal candidate not be necessary, then the outsourced CFO should be examined for their suitability, capacity to communicate in a timely fashion and work in sync with the standards that are set for every member of the brand.