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How CFO Services Can Drive Growth For Small Businesses

In these increasingly competitive times, organizations, particularly small businesses, need the expert support and guidance of a financial specialist to navigate a wide range of challenges.

According to Forbes, as the business environment is changing and now, mostly leveraging on the new, advanced technologies, it is the right time to revise and expand the role of CFOs within the company.

However, when you decide to get a financial expert on board, you have two options available, you can hire an in-house CFO or collaborate with an outsourced CFO.

Where full-time CFOs can work with the company in proximity, hiring outsourced CFO services is more cost-effective, as businesses pay on an hourly basis or fixed rate. Even though both options are excellent, but outsourcing services are often the ideal choice for small companies, as they cannot pay huge salaries along with benefits.

Let’s find out how Outsource CFO services can empower small businesses and drive growth.

They Design Entire Financial Systems

A lot of small businesses start without proper financial systems in place. But as they grow and continue to expand their operations, they realize they can only achieve their optimum level of productivity, efficiency, and profitability when they have transparent and robust financial systems.

The role of a CFO is far beyond just being a financial advisory. They learn how your business works, gather all available information regarding business finances, and set up new systems that help achieve company goals. This can highly improve your financial team’s efficiency by highly reducing the number of errors.

They Provide Insightful Reports and Analytics

One of the more significant advantages of hiring a part-time or outsourced CFO is that they can read and interpret financial data, enabling executives to make more informed decisions. A lot of companies don’t clearly understand their financial health, which is why they are not able to make timely decisions to improve the situation.

CFOs not only guide to prepare accurate financial reports like a profit and loss statement and balance sheet, but they also help effectively use the information derived from them. This information becomes the basis for setting a direction for team efforts.

Guide Teams In Adopting The Latest Technology

How businesses record their transactions and manage operations is changing. The emerging technologies have helped accounting and finance departments to improve accountability, transparency, and efficiency. More and more companies are using digital platforms like Quick Books to help them streamline the processes and further facilitate their business growth.

A CFO not only identifies the right technological platforms that will support business operations, but they also help guide the team through a smooth transition process.

Help Identify New Business and Financial Opportunities

Do you want to grow your business? It all starts identifying the best operational and financial opportunities within or out of your city. In this time and age, companies are looking for rewarding collaborations and partnerships from around that world that either helps them spread their operations or increase their brand equity.

You never know which opportunity completely changes the game for you. This is why a CFO is a perfect addition to your team. They use their expert knowledge to find new financial opportunities that may increase your profitability.

Navigate Cash Flow Problems

Cash flow statement is one of the major reports CFOs help prepare. It helps keep a record of all the incoming and outgoing cash transactions and enables businesses to manage cash flows better. One of the significant responsibilities of a CFO is to make sure the company never comes to a point where they have to navigate a cash crisis.

Moreover, managing cash flows help CFOs make timely decisions to cut back on unnecessary expenses and reduce the volume of cash outflows or find additional income sources to increase inflows.

If your business is in the growing phases, then you absolutely need a CFO to ensure you are always backed with a steady business cash flow.

Develop a Tailored Financial Strategy

One of the most significant aspects that power sustainable business growth is effectively managing business finances. An in-house or an outsourced CFO, will both help you design a financial strategy customized for your asset distribution and company goals.

A thoroughly drafted financial strategy is imperative to ensure your money is invested with the direction necessary to achieve specific goals. CFOs are professionally trained, and they understand the financial markets better than most of the other people working in your company. This is why they are the best resource to take on this job.

Help Raise Capital For New Projects

For a lot of businesses, their growth plan includes actionable measures like launching a range of new projects or services, initiate a new project, or expand their offerings within the country or internationally. This often requires obtaining external investments, and your CFOs can be very helpful at finding the investors and venture capitalists for you.

However, often outsourced CFOs are more effective at introducing businesses to possible investors as the nature of their job helps them keep a strong network and relations within the financial market. Furthermore, they also help you prepare accurate documents for investors to help them analyze your financial position and increase their confidence in the company.

Wrap up

As the business landscape has changed, it has become a high time for small businesses and startups to realize the role a CFO plays in the overall growth and profitability of the organization. Their experience, knowledge, skills, and professional training make them the best individual to guide you and your business through different operational and financial challenges. Whether you believe an in-house or outsourced CFO is the ideal option, make sure to find the right expert to help drive your business growth.

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