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Don’t Wait for Struggle to Strike: 5 Signs You Need an Outsourced CFO


You know better than anyone how important your business financials are. Yet, many company owners still try to do everything themselves, including key financial processes and projects that require the experience of a professional. Instead of hiring an internal, full-time CFO, many companies are opting for a more flexible and cost effective approach – outsourcing the CFO. But how do you know when it’s time to bring in help?

There are five major signs that a company needs to hire an outsourced CFO:

1. You’re Experiencing Exponential Growth


If sales and revenue are starting to grow rapidly, it’s time to think about hiring help from a CFO. Along with growth comes risk, and an outsourced CFO can help you manage the financial and regulatory risks.

Don’t wait too long, or your business could outgrow your financial processes, which can lead to more difficult, dramatic changes later on.

2. You Need to Build Rapport Outside the Company

This is oftentimes closely related to the first sign – If your business is growing, this might mean you’re taking out a loan from the bank to add more fuel to the fire, or are working more with shareholders. Maybe you’re seeking new suppliers to expand the company’s offerings. Either way, having a CFO who can interpret and provide valuable answers to these external entities and people is key.    

3. You Want a Sounding Board for Overall Strategy

CFOs have a broad view of the company, and can use their expertise to advise you on important projects and decisions. They can do a deep dive into your overall business strategy, and recommend any changes and improvements. This is certainly one area where spending money on an expert will end up saving you money in the end.

An outsourced CFO also has experience working within a wide range of businesses and industries, which can be incredibly beneficial for you and your team. They can apply what they’ve learned from other companies to your specific business model and financial needs.

4. Your Accounts Receivable Are Getting Out of Hand

Many businesses are not paid by their clients right away. It takes an expert to create an accounts receivable collection policy that actually works. A CFO will help you create an organized process that works for you. Do not make the mistake of waiting too long to hire a professional for help getting your receivables under control.

5. You’re Involved in a Merger or Acquisition

A CFO is typically a must for mergers and acquisitions. You will need a professional to interpret the regulatory and financial terms, and help out the team working on due diligence. The CFO will be able to field any questions from lenders or investors.

The months after the merger or acquisition will require a CFO to oversee establishment of a new accounting system, documentation and evaluation of existing financial procedures, overseeing the transition as a whole, and any surprises along the way.

Are Your Signs Pointing Towards Hiring an Outsourced CFO?

An outsourced or virtual CFO can free your time and energy to focus on more important tasks that you’re better at, and can make your business more profitable in the long run. Pay attention to the signs so that you know when it’s time to optimize your company’s financial performance!

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