How outsourcing CFO services can help scale your business?

How outsourcing CFO services can help scale your business?

Outsourcing CFO services is a growing trend within South Africa and rest of the world. Outsourcing in general has in recent years has given small to medium companies the option to bring on board good quality skills that positively allow the company to grow and thrive. By using a outsourced CFO firm, your firm is able to benefit from a top tier CFO consultant that normally would be too expensive for your company to employ full time.

 Companies that should consider using an outsourced CFO agency:

  • Companies that are on a rapid growth path (whether PE/VC funded or otherwise) or who aspire to grow rapidly over the next 3-5 years.
  • New generation family members who have joined/ are set to join their family businesses who realize the importance of having a good quality CFO
  • Promoters of family owned and managed companies who have misgivings of hiring a ‘professional CFO’ immediately and would want to transition this after having worked with an outsourced company
  • In an M&A situation where there is a need to get involved in a ‘post merger’ integration role
  • Where an existing CFO moves out of an organisation and there is a need to bring in a replacement quickly

While it is difficult to establish a direct comparison between having your ‘own’ CFO and having an outsourced CFO, an outsourced CFO firm brings in certain measurable advantages and can assist a company to scale up in the following ways:

Short notice hiring: An outsourced CFO service is an ‘on tap’ service allowing companies/promoters/CEO’s to hire a quality person at a short notice, keep them for a period of time that is needed and get a full time in –house CFO when the need is met.

For high growth companies: High growth companies require different CFO skill sets at different points in time during their scaling up process. This is because it is getting increasingly tough for companies to accurately predict the growth rates and the situations that they will be in at some point in the near future. This also presents them with an issue in that the CFO hired today may or may not have the skill sets to manage the sudden growth. In a scaling up phase, an outsourced CFO firm also provides options of having people working on multiple projects within the Finance and Accounting Function (F&A) to keep pace with the growth.

Cut time and efforts: An outsourced CFO services firm will be able to cut time and efforts by being able to bring existing relationships with bankers, auditors, investors, external consultants which they have built either as a result of having served multiple clients or by having a team which brings these relationships through their previous employment stints. This cuts the time in having to develop these relationships from scratch and also results in cost savings (reduction in interest rate for instance), negotiation of better terms and also being able to define expectations better.

Our friendly team at Nicshe Business and Accounting Solutions are ready to answer any questions you may have regarding our unique CFO for hire service. If you would like to know more, please do not hesitate to contact one of our friendly consultants today.

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