A Chief Financial Officer (CFO) is the person who handles a company’s money. They oversee financial planning, manage financial risk, keep an eye on financial record keeping, and ensure proper financial reporting. If it has to do with company money, it has to do with the CFO.
Interestingly, though, not all companies have a CFO. One Netsuite article reported that, “in terms of revenue size, companies over the $25 million threshold tend to have CFOs. Alternatively, many startups hire CFOs right away to help develop company strategy and set up capital structure and business systems.” This means that, in today’s business trends, the companies that tend to have CFOs are either super big or super small.
Large companies are dealing with so much money and so many different facets of finance that they need to hire somebody (or in some cases a few somebodies) whose full-time job is making sure all that money is used properly. The risk is high enough to necessitate that investment.
Small companies understand that they need a solid financial structure and strategy if they’re going to go anywhere, so a CFO can help them with just that.
But what about the companies in-between? What about those medium-sized companies who are staying afloat, but feel like their finances could use a bit more attention? These are the companies that are growing, whose finances are becoming increasingly complex, but they aren’t sure if they can bring on a full-time CFO just for that. Their finances need more attention than their current staff can handle by putting in a couple extra hours each week, but they aren’t so big that they need a full-time CFO. So what do they do?
One option, that is becoming increasingly popular, is outsourcing CFO duties to a company that can take care of financial needs at a more affordable rate than a full-time employee (plus benefits!). These companies often oversee the finances of several companies at once, which makes it easy to invest just a few hours a week into each account.
Think about it. You could hire a full-time CFO and invest at least $200,000 a year in them (and that’s a low-paying CFO job—not a great offer to begin with). You could try to find a qualified CFO who’s willing to work for you, part time, without benefits, and hope they stick around. Or you could pay a professional group to spend a few hours every week making sure your finances are straightened out—a group who doesn’t need to invest full-time work into your business because (1) they have other clients and (2) your company doesn’t require that much attention.
The choice should be obvious. If you don’t need a CFO, outsourcing is an efficient, affordable, convenient, and professional option.
NOW CFO is a roll-up-our-sleeves, full-service consulting firm with a singular focus on outsourced CFO, Controller, accounting, and financial service needs. They bring full financial visibility to their clients’ businesses so they can make smarter business decisions.
If you’re looking to outsource your financial oversight, CLS and NOW CFO can help. Give us a call at 855-917-3165 or email email@example.com to learn how we can help your company maximize its financial management!
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