Outsourced Finance Manager: What Is It and Do You Need One?

A finance manager is often the most experienced financial professional in a small business. Their responsibilities include overseeing company finances (cash, debt, collections, and payments,) preparing statements and reports, analyzing data and collaborating with management to make important decisions. As the owner or CEO of a small business, your financial manager plays a key role in the success of your business. A finance manager must stay ahead of the latest business practices and trends within your industry, so that your company can change course when necessary and take advantage of new opportunities. 

If your finance team is falling short of these expectations, or if you are looking to gain these advantages without the burden of a full-time employee, an outsourced finance manager may be the right solution for you.

What Comprises the Role of Finance Manager?

A finance manager is like a junior CFO: they prepare financial reports, analyze data, and present recommendations to steer the company to greater profitability. Supervising finance department staff, ensuring regulatory compliance, analyzing market trends, and guiding investment decisions are other finance manager responsibilities.     

What Does Financial Outsourcing Mean?

In financial outsourcing, a company hires an outside service provider to handle some or all of your business’s accounting processes. This can include daily bookkeeping, financial reports, tax filings, market analysis and much more. A financial expert may also advise on issues related to your industry, such as specific tax laws and regulations. Finance management outsourcing is like having an accounting department and CFO on your team, without the expense and time commitment of full-time employees. 

What Parts of Accounting Can Be Outsourced?

Virtually every accounting task can be outsourced, from daily transactions to financial reporting, all the way up to the role of a finance manager.

Outsourced finance manager responsibilities:

  • Oversee cash flow and direct department staff
  • Develop long-term business strategies
  • Analyze markets to look for business opportunities
  • Investigate how to improve profitability
  • Review and analyze financial reports
  • Prepare financial forecasts and activity reports 
  • Ensure compliance with industry regulations

Reasons to Consider Finance Management Outsourcing

Are you experiencing a sudden downturn and have decided to change your strategy? Is your current finance team not meeting your expectations? Financial services outsourcing offers the following benefits:

  1. Frees Up Time – Owners and staff can stay focused on their business.
  2. No Hiring Costs – Outsourcing financial services saves you money.
  3. Industry Best Practices  – Outsourced financial agencies stay up to date on industry best practices through their diverse professional network.
  4. Business Continuity – No more concern about employees leaving with their expertise. 
  5. Experience – Outsourced financial professionals have seen all phases and types of business development, giving you deep knowledge and experience to draw upon.

How Much Does Outsourcing Finances Cost?

The cost of finance management outsourcing varies according to company size, location and services. An outsourced full-service financial team may be $1,000 to $12,000 monthly, whereas the annual salary for a full-time finance manager can range from $50,000 to $125,000. Overall, compensation is comparable, but flexible arrangements along with the consistently high quality of outsourcing financial agencies make them a compelling option. 

How Much Internal Time is Required for Financial Outsourcing?

Your outsourced finance manager should have an onboarding process that includes full investigation and evaluation of your processes. This process should be designed to limit your involvement to essential discussions only, while leveraging your team as a resource and independent research by the outsourced finance manager.

Discover the CFOshare Difference

When you partner with CFOshare, you have access to a team of financial experts who become part of your organization. They don’t just crunch numbers — they are focused on strategic management and the future growth of your business. Contact CFOshare for a free consultation.

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