Many emerging growth and middle-market companies stand to benefit from the expertise of an experienced financial and accounting professional but are hesitant to carry the cost of a full-time chief financial officer (CFO) or struggle to fill that position.  Often, these organizations employ a bookkeeper and accounting personnel but lack a fully functional accounting department capable of addressing complex financial strategy issues, financial forecasting, financial reporting, and interpreting financial data to create meaningful projections to guide the organization forward. When an organization finds itself in this position, an outsourced CFO can be a cost-effective and immediate solution.

The outsourced CFO is generally engaged on a fractional -or- monthly subscription basis, which is made easier through cloud-based accounting programs and virtual team collaboration software such as Zoom and Microsoft Teams.

You may be asking yourself, “What are the benefits of hiring an outsourced CFO? Why should I outsource CFO services?”. Here are just a few benefits of utilizing an outsourced CFO:

HOW DOES AN OUTSOURCED CFO WORK?

An outsourced chief financial officer is usually retained by an organization on a part-time or contract basis to meet certain short-term needs and long-term goals. Ideally, your outsourced CFO becomes an integral member of your team for years to come.  Often, they provide outsourced CFO services, such as bookkeeping and controller services and CFO consulting services, to many companies at once.

However, it’s important not to confuse an outsourced CFO with an in-house CFO, whose role is usually full-time at only your organization.

OUTSOURCED CFO BENEFITS

An outsourced CFO helps business owners focus more on their business instead of working in their business. Engaging an outsourced CFO relieves business owners and executives from the burden (time and expense) of hiring, training, and retaining accounting talent by outsourcing that work to seasoned financial professionals and their firms. Business owners can focus on growing their business, increasing cash flow, and other more pressing initiatives.

INCREASED EFFICIENCIES

Cloud-based technologies have brought about certain opportunities for integration and automation to be leveraged for the benefit of increased efficiencies and process improvements. At Mercadien, our outsourced CFOs utilize state-of-the-art technology on our engagements so that we can provide the highest level of service to our clients.

EXPERT FINANCIAL STRATEGIES WHEN YOU NEED THEM

An outsourced CFO serves as a trusted advisor to your organization and, as such, is there to support you through any challenge you may be facing. You can rely on your outsourced CFO and their financial expertise to guide you through complex financial projects, keep your organization in compliance, help you achieve your goals, and work with you to devise financial strategies. Your company can grow under the outsourced CFO’s financial leadership.

The other added benefit of having an expert outsourced CFO on your team is that you can contact them with any questions you may have as they arise and know that you will receive expert financial planning advice to guide you.

COST SAVINGS WITH OUTSOURCED CFO SERVICES

Instead of hiring a full-time CFO as part of your team and the added expense of covering their compensation and benefits, you can hire an outsourced CFO for much less cost to your organization and receive the same level of service that you would get if you had an in house CFO within your company.

An effective outsourced CFO typically results in significant savings over hiring a full-time CFO, though it still comes with a cost. Outsourced CFO services generally cost between $3,000 and $8,000 per month, depending on the level of service required.

AN OUTSOURCED CFO: MORE THAN JUST NUMBERS & FINANCIALS

Beyond just budgeting and forecasting, monthly/annual financial analysis, and tax return preparation services, an outsourced CFO can offer strong support to business owners, C-suite executives and boards in other areas, including:

• Facilitation of strategic planning sessions
• Serving as advisor to the C-suite or governing board
• Advising on relevant M&A activities in the company’s industry or market
• Evaluation and implementation of new accounting programs
• Accounting/finance department efficiency studies
• Cash flow modeling
• Risk assessment services
• Identifying patterns in financial data leading to revenue enhancement and/or cost-cutting initiatives
• Raising outside capital and/or refinancing debt
• Performing business valuation and/or financial due diligence services (buy-side or sell-side)

OUTSOURCED CFO SERVICES TO HELP YOU GROW YOUR BUSINESS

Mercadien’s Outsourced CFO Advisory Team is here to help you and your organization. You deserve an affordable outsourced CFO that you can trust, gives you peace of mind, and understands your organization and industry. We understand what it’s like not having a good solution for your CFO function & the impact it has on your organization, which is why serve as outsourced CFOs & business advisors to dozens of organizations like yours. Contact us today to learn more about our outsourced CFO services.

DISCLAIMER: This advisory resource is for general information purposes only. It does not constitute business or tax advice and may not be used and relied upon as a substitute for business or tax advice regarding a specific issue or problem. Advice should be obtained from a qualified accountant, tax practitioner or attorney licensed to practice in the jurisdiction where that advice is sought.