When does the business need a part time CFO services?
Almost every full-profit company in the world shares one thing in common: the desire to improve profitability and increase shareholder value. Often however, a lack of financial expertise can keep businesses from reaching these goals.
These businesses should turn to providers of outsourced CFO services to help them improve financial management and, thus, achieve these critical goals. Outsourced CFO services providers support CEOs and CFOs by delivering high-level financial expertise and capabilities, along with the flexibility that comes with hiring an outsourced consultant instead of committing the time and expense required to hire a full-time CFO.
A few examples of situations in which providers of outsourced CFO services can be most helpful include:
During a transition period between full-time CFOs
If your company has lost or outgrown its full-time CFO—or if you can’t afford to hire a full-time CFO—outsourced CFO services can provide the financial expertise and capacity you need on a short-term or temporary basis.
During periods of rapid business expansion
Acquisitions, rapid organic growth and IPO-driven growth can present major financial challenges that a provider of outsourced CFO services can help meet. These challenges may include new and more sophisticated data, compliance requirements and processes.
During periods of business contraction
Conversely, a company’s strategic plan or the shifting economy may result in divestitures of one or more business units or downsizing via cutbacks in operations. In addition, a distressed business may benefit from the turn-around guidance that outsourced CFO services can provide.
To work on special projects
Projects like purchase accounting, acquisition integration, financial modeling, financial restatements, and deal evaluation may present special challenges for companies with limited financial and accounting experience.
To provide strategic planning and help meet operational challenges
Sometimes, CFOs and other financial and accounting staff are so busy providing CEOs with historic and other critical data that they don’t have time to delve into higher-level data or think about strategic financial planning. This may be where outsourced CFO services providers can bring the most value: by delivering financial consulting on costs and profits and other high-level strategic financial analysis and guidance.