A Chief Financial Officer is responsible for taking the books and making informed business suggestions based on accurate forecasting and benchmark data. They ensure that a company is staying compliant with financial laws and want to help the company stay financially strong and grow.
In some companies, the position of CFO is a full-time, salaried, role. Every company needs to be able to utilize their financial data in order to grow if they want to maintain their business in good financial health. It does not necessarily follow, however, that every company must have a full-time CFO.
Even with a fairly large company, it is possible to outsource this service to save money while still accessing invaluable business advice.
Entrepreneur points out that “many CFOs limit their focus to the accounting aspect of the job – presenting financials and they can become glorified controllers instead of helpful partners guiding the company’s strategy. ‘All they’re doing is presenting balance sheets and income statements and cash-flow statements,’ Hamilton says. ‘That’s ironic because if you look at the definition of accounting, it’s supposed to be the basis for financial decisions. Accounting is not an end; accounting is a means to an end.’”
We think that outsourcing your CFO position ensures that the position will be well-maintained.
An outsourced CFO is held to regular reviews of the books and needs to provide good, actionable steps, about how to move the business forward. At Accountix, this means we help you evaluate businesses decisions based on numbers and analysis. For example, this might mean us evaluating the potential benefit of adding a new location or product line. Sometimes it is more tactical and could mean looking for cost savings by negotiating with your vendors and suppliers. It is customized and flexible depending on what issues you might be facing that week or month.
The price of a full-time CFO is astronomical to most small businesses. They are an executive position after all, but outsourcing to a consistent team of accountants – all with a variety of experiences to bring to the table – can give more diversity of opinion at a lower price.
It’s a win/win.
Learn more about CFO services with Accountix here.