Outsourced CFO services can benefit many companies, including both small companies and even medium-sized businesses. Also called a “virtual CFO,” an outsourced CFO performs important financial services for your company. Read on to learn why more businesses are outsourcing their CFO, and what a virtual CFO can do for your organization.
Outsourcing your CFO services can help your company save financial resources. A CFO is a full-time executive position that typically comes with a six-figure salary. Many small businesses cannot afford this, and prefer to pay a much smaller fee for outsourced CFO services.
According to this Entrepreneur article, a full-time CFO, including base salary plus taxes and benefits, costs a small business about $218,750 per year, or $18,229 per month; however, most small companies might only need a CFO about one day per week, at an estimated monthly cost of only $6,400.
By outsourcing your CFO duties, you won’t have to pay for a full time executive that you don’t actually need.
A lot of small businesses do not have a dedicated CFO, but instead have one person in their company perform multiple roles, including management of finances. Unfortunately, when the CEO or someone else in the company is also responsible for handling financial matters, they have less time to focus on other business-critical tasks.
Outsourcing your CFO allows you to free up your valuable time so you can focus on other important aspects of running your business — instead of sorting out complex financial matters.
Third-Party Financial Management = Better Controls, Reduced Fraud Risk
Again, when someone within a small business takes on multiple roles, this can cause problems in your company. One such problem is a higher likelihood of theft and fraud. When you have an outside entity handling your company finances, issues like theft and fraud are much less likely.
Hiring a third party to perform CFO services provides objectivity that you as the business owner or CEO may not have. This expert can provide better internal controls within your company, as the person handling your finances has no “horse in the race,” so to speak.
Complete Financial Management
A virtual CFO has the financial expertise required to manage every aspect of your company finances. Here are a few duties of an outsourced CFO:
Budgeting, Paying your bills, processing your payroll, handling financials, Cash flow forecasting,
Paying your bills, Accounting system design and implementation.
We offer vCFO (Virtual CFO) Services Australia wide.
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