You are likely already outsourcing some of your financial needs and not even realizing it. Does a CPA firm file your taxes? If so, you are already outsourcing financial services. Income tax financial expertise is not a service you need every day, so you do not need a tax accountant as a full-time employee.
An outsourced financial partner is a recommended alternative to an in-house hire. Outsourcing CFO, bookkeeping, and analytic work is an effective substitute until your business grows to such a size that there is a full-time need.
What are the benefits of outsourcing your financial management?
Outsourcing CFO services allows you to take advantage of professional financial strategy and usher in transformational changes. The reasons to outsource financial management are numerous but key items include:
Improved internal controls
Have you implemented proper accounting controls, or do you trust your admin to not fall for hacker fraud? You can reduce the risk of fraud when a 3rd party accountant is present. Hiring a professional with financial expertise means employing an industry expert knows best practices and how to implement them. This includes financial controls like double checking work, segregation of duties, and identifying hacker and phishing emails —all fraud reductions practices.
Use your outsourced team only when and where you need them. Because you are not hiring someone full-time, you can choose the level of support you need and when. That means not paying for a full-time bookkeeper when there is no work. It also means increased time and support at critical times like during an audit or while selling your company.
CFOshare is a team of specialists with a variety of backgrounds. By not committing to an in-house hire, you get access to the right skillset based on the project need or your current business position.
Stop wasting your time chasing numbers. As an entrepreneur, the time you spend on your business and vision is valuable. Outsourcing financial services allows you to focus on the value-enhancing aspects of your business including managing employees, fund raising, or selling.
Investors and lenders have a positive reaction when they know you have a financial professional on your side.
What is financial management?
Financial management services include the planning, organizing, controlling, and directing the financial activities of a business. The pyramid below depicts the levels of financial management. Starting with the base of the pyramid, the accounting and bookkeeping track the financial movements of a business. From those records, a financial picture is created and then turned into data-driven strategy.
The financial activities of the pyramid should be directed towards achieving both the long- and short-term company goals. Goals often include creating profits for the employees and founders, selling the firm, or taking the firm public. There is no differentiation of outsourced financial management and in-house financial management.
What do you need to outsource your financial management?
If you do not have the need to employ a financial professional full-time, you already understand the disadvantages of in-house financial services. To hire an outsourced resource, you only need a few items:
- A set of accounting books or the desire to begin implementing proper accounting practices.
- Willingness to share access, share your vision, and share the management of your finances.
- The eagerness to adopt new solutions and increase scalability.
You need critical financial information; you need to make informed decisions about your business. And you need that information for your external stakeholders as well. Outsourced teams like CFOshare can be your solution.