OR Reporting: Financial Reporting & Accounting Company - Houston, TX

It's Time to Hire an Outsourced CFO & Financial Controller

It's Time to Hire an Outsourced CFO & Financial Controller

If you’re experiencing heavier responsibility than you can manage within your business, it may be time to step back and assess the situation. One of the prevalent burdens business owners bear is the overwhelming strain of handling finance and accounting functions.

As a business owner, your job is to find ways to scale your company, not bury your head in financial records. Successful businesses leave this work to their Chief Financial Officer (CFO) and Financial Controller.

CFO and Controller: Who Do You Need?

In some organizations, these two positions overlap, but other corporations with well-defined roles and structures can highlight their main differences. To simplify things, the Financial Controller is responsible for compliance and reporting, while the CFO oversees all financial tasks, such as forecasting and analysis. The latter is also responsible for higher-level strategies and planning.

If you require the following, a Financial Controller will be useful to your team:

  • Management of your bookkeepers and accountants;
  • Accurate financial reports;
  • Supervision of the closing of a financial period;
  • Better, well-structured processes to avoid mistakes, fraud, security breaches, and other compliance issues; and
  • Someone to assist the CPA (Certified Public Accountant) during tax season.

Meanwhile, a CFO is what you need if you require:

  • Higher-level reporting and analysis to steer company decisions and business direction;
  • An effective financial strategy for the business;
  • Risk management;
  • Cash flow monitoring;
  • Financial forecasting;
  • Implementation of financial systems;
  • Fundraising guidance;
  • Relationship improvement with investors and lenders; and
  • Assistance with equity or debt tasks

However, not all businesses can afford or manage these roles to oversee their financial operations, so plenty have turned to outsourcing them.

How Do You Know it’s Time to Outsource?

There are warning signs that indicate that you may need to hire an external CFO and Financial Controller. Some of the questions you can ask yourself when deciding whether to outsource are:

  • Can I afford to hire a full-time, in-house CFO and Financial Controller?
  • Is my current in-house team productive and cost-efficient?
  • Have I found a qualified CFO or Financial Controller candidate from our talent pool?

If you answered NO to these questions, outsourcing these two positions will undoubtedly be beneficial. Many small business owners resist hiring a CFO and a Financial Controller due to cost-saving issues, preferring to handle the financial duties— not realizing that this only counters their original objective and ends up costing more than just money. Many also settle for their current finance department leaders despite their subpar performance when great strategic planners and tactical controllers are available elsewhere.

Understandably, affording these roles is a real issue. But that’s where outsourcing them comes in. Not only will you be able to hire a qualified CFO or Financial Controller with a wide skill set and relevant experience, but you can also save money and improve your operations.

Perks of Hiring an Outsourced CFO & Financial Controller

The top benefits of outsourced CFO and Financial Controller services include:

Cost-savings

Particularly for small businesses and start-ups that don’t have a feasible budget for hiring a full-time, in-house CFO or Controller, you will want to save money where you can without compromising on quality. External CFOs and Controllers spare you from expenses related to recruitment, onboarding, and training, and as they are flexible, you can develop a working arrangement that works for you.

Expertise

No longer do you have to limit yourself to the local talent pool. Outsourced CFOs and Financial Controllers typically have amassed a wealth of experiences and skills, just from working from company to company. They are also required to be up to date, ensuring their solutions and technology are based on the latest industry trends.

Wider Networks

These outsourced professionals come with contacts and affiliations that can be a fantastic asset for your company, especially if you are just starting out. These networks can range from clients to banks and investors, each bringing their own pool of resources that can potentially help you scale.

Final Thoughts

Companies need a Chief Financial Officer and a Financial Controller to improve and oversee their finance and accounting operations. Small businesses and start-ups may not be able to afford these positions, but they can turn to outsourced services. In fact, even large corporations outsource their finance and accounting tasks because of the perks. One of the biggest benefits of hiring an outsourced CFO and Controller is financial savings, as it is less costly to pay for contracted services. With diverse experience, skill sets, and connections, they can also improve your operations’ productivity, performance, and scalability.

Share:

Share on facebook
Share on twitter
Share on linkedin
Share on facebook
Share on twitter
Share on linkedin

Related Resources: