Unlock the Full Potential of Your Small Business with an Outsourced CFO

After a period of growth, you may be wondering whether or not it's time to hire a CFO for your small business. On the one hand, CFOs offer top-level financial advice and expertise that can take your business to the next level, but on the other, they are expensive, and you may not be ready to commit to an in-house hire.

Enter: outsourced CFOs.

What is an Outsourced CFO?

An outsourced CFO works part-time with you and usually remotely. This means you have access to expert financial guidance as and when needed without the commitment or cost of an in-house hire. For many small businesses, this is a convenient and affordable option that can take them to the next level and transform their profit margins. 

Let's examine how an outsourced CFO can drive your profits and transform your business.

Labour Cost Management 

As your business grows, you will need to take on more team members, and the cost of this can be challenging to manage. Timing is crucial. If you hire new staff too early, you jeopardise your cash flow. However, if you hire too late, you will antagonise your existing staff by overworking them and compromise the quality of service your customers receive. A virtual CFO can optimise your hiring process by helping you to understand when it makes financial sense to hire and when to hold back.

Debt Management 

Whether you currently have debt or it's part of your growth strategy, an outsourced CFO will prove instrumental in helping you to manage your credit well. 

A significant amount of debt can eat into your profits. An outsourced CFO will create a debt reduction plan to get you back on track and maximise your margins. 

Meanwhile, suppose you anticipate going into debt before a period of growth. In that case, your CFO can devise a strategy to mitigate the risks and optimise your liabilities to help you achieve your goals.

Budget Tracking

Many business owners create a budget, only to get side-tracked and forget all about it. An outsourced CFO can help you craft a realistic business budget that supports your goals and analyse your actual reports to track how well you are sticking to it. This data can then inform future planning, help you make well-timed investments and allow you to create more accurate financial forecasts.

Cost Control 

To maximise your profits, you must keep your costs as low as possible without compromising your business. An outsourced CFO can help you implement efficient cost control by identifying costs you can reduce and carefully tracking your variable expenses. This gives a significant boost to your bottom line as well as improving your cash flow. 

Planning for Growth

A lot can change as your business grows. If you fail to prepare correctly, you might find yourself face-to-face with a financial disaster. An outsourced CFO's financial insight is invaluable when preparing for growth. Their vast experience allows them to offer expert, impartial advice, act as a well-informed sounding board and help you avoid financial pitfalls.

Outsourcing is a fantastic solution if your business needs financial guidance but is not yet ready to hire an in-house CFO. This gives you access to top-level financial advice to steer your business towards success without breaking the bank, thus maximising your profit margins.