Knowledge and Insights

Benefits of an Outsourced or Fractional CFO

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 CFO or just 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 issues 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 time and materials -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 to hiring an Outsourced CFO? Why should I do it?”. Here are just a few benefits to utilizing an Outsourced or Fractional CFO:

RE-GAIN FOCUS ON YOUR BUSINESS

An Outsourced CFO helps business owners focus more on their business instead of 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, allowing them to focus on growing their business 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, we utilize state-of-the-art technology on our engagements so that we can provide the highest level of service to our clients.

GUIDANCE WHEN YOU NEED IT

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 to guide you through complex financial projects, keep your organization in compliance, help you achieve your goals, work with you to plan strategies to help your company grow and much more. The other added benefit of having an expert like an 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 advice to guide you.

COST SAVINGS

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 a CFO employee within your company.

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)

Mercadien’s Outsourced CFO Advisory Team is here to help you and your organization. You deserve an affordable 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 fractional CFOs & business advisors to dozens of organizations like yours. Contact us today to learn more.

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.