G-Squared Partners: The Top 4 Benefits of Using Outsourced CFO Services

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This is a guest blog post from our friends at G-Squared Partners. A great CFO can save you time and help save money while maintaining a flexible team (scaling up a full in-house finance team has serious costs that can limit your business’s long-term flexibility). In addition to ensuring you have a knowledgeable resource to help make long-term, strategic financial decisions, outsourcing your CFO can drive broader business benefits.

Take a look at the top four benefits companies see when using outsourced CFO services. 

Benefit #1: An outsourced CFO gives you more time to focus on your actual role

Whether you are the owner of a startup or running an established business, there are always constraints on your time. You are taking on numerous responsibilities outside your job description of CEO or owner.

Outsourcing financial services can take many of those responsibilities off your plate, saving you time and allowing you to turn your focus back to your actual job role.

Plus, turning to the right outsource partner builds the foundation for a long-term, prosperous relationship. They can become a trusted part of your team, allowing you to step back and let someone who is more knowledgeable and capable in a specific area take over. Focus on growing your business, instead of the financial minutiae you can hand off to someone else.

Benefit #2: An outsourced CFO saves money for growing companies 

Startups and other growing companies often do not have the expertise to navigate significant accounting challenges, nor do not have the initial capital resources to staff an entire company. Fully staffing an entire department or paying a substantial salary to an expert might not be in your budget.

Hiring a CFO, Controller, Accountant, Bookkeeper, or any combination of these positions is a big expense. Outside base salary, you are also responsible for medical, dental, 401k costs, and more. But, when you outsource financial services, you are not responsible for any of those expenses and can adjust your budget accordingly

There is a financially strategic element to outsourcing financial expertise, as well. If you are a startup or venture-backed company, that could go public or be purchased, you often find yourself offering a stake in the business to attract high-level executives. Outsourcing these positions, until you truly need a full-time person, can help you to avoid giving away too much of your company too early when valuations are lower.

Benefit #3: Outsourced CFO’s provide immeasurable experience in their field

When you trust important responsibilities like finances to outsourced partners, you can count on them to have a wide range of experience and knowledge. They have likely worked with many different kinds of businesses and have dealt with numerous problems, meaning they are equipped to face any challenge your company presents. Their experience also produces different approaches and tactics for completing the project you task them with.

With outsourced financial services combined with other key operational areas like IT, payroll, and marketing, you can have an entire team dedicated to helping your business succeed, instead of limiting yourself to one internal resource.

This placement of specific skill sets where needed increases the quality of work completed for your business. 

>> Read More: What Should You Look for in Outsourced CFO Services?

Benefit #4: Outsourced CFO’s provide flexibility for growing companies 

As a business owner, you know how essential flexibility is to the success of your company. The state of a startup can change at any minute, so your resources need to be flexible enough to keep up.

When you outsource key aspects of your business, you have the power to scale the team and services at will. If your business grows, you can increase your outsourced resources. If there is a dip in your industry, you can scale back your expenses, which might include your outsourcing budget.

This flexibility allows you to avoid the unpleasant situation of having to hire quickly when business suddenly booms, or lay off employees if things take a downward turn. Outsourcing a CFO also provides leadership and expertise to young companies in unforeseen circumstances or challenging times. Outsourced service providers are used to abruptly scaling their service, and a quality CFO should be no exception. 

Time, money, quality, and flexibility are four benefits of outsourcing you cannot afford to ignore. Take back power over your role as a business owner. Invest in outsourced resources to build a better business. As an expert in providing outsourced CFO services, G-Squared Partners is ready to help your firm achieve its financial goals. 

Check out another G-Squared Partners article about Cash Flow Projections HERE