By Analytix Editorial Team
Most decisions in a small business are often driven by the budget or additional money available to invest in the business. Hiring resources is no exception, and the decision to hire a CFO may be deferred on the grounds that it could be too expensive for a small business. However, not having access to a CFO’s expertise can mean the difference between a business that grows systematically and one that struggles along the growth curve, at times challenged by obstacles to their growth plans.
Fortunately, small businesses have the option of outsourcing a CFO which still provides them with access to the expertise needed to grow their business.
Why A CFO Is Essential For A Small Business
A CFO empowers a business to grow faster through planning and executing financial strategies, as well as proactively working alongside operations and management. A significant part of this work includes using data and information from across business operations, including finance, to formulate strategies that can then be implemented profitably.
With many businesses leveraging the virtual workspace and cloud technology in some form, data analytics play a major role in the ways in which data is recorded and reported. Technology has grown, and when optimized, can convert information on operations and management into data that can then influence key decision-making for the business leadership. With all of this in hand, the business’s CFO can:
For a small business, it can be challenging to hire a CFO and simultaneously arrange the business infrastructure required to support the CFO.
When a small business leverages an outsourced CFO, the advantage gained is that of an in-house resource empowered with the back-up systems of the outsourcing agency. Thus, the small business taps into a skilled resource while the outsourced CFO plays the critical role of bringing together the business operations to create a cohesive force that is focused on growth.
Furthermore, and more importantly, the outsourced CFO is experienced enough to analyze the business and outline the difference between what is needed to grow the company and how best to utilize existing resources, while simultaneously outlining what additional complementary resources are still required.
Because the outsourcing agency has the expertise and infrastructure already in place, the CFO services provide the added advantage of hitting the ground running. There is no longer the need for the CFO to learn about capabilities, such as driving and implementing strategies through data and analytics. They already are aware of the kind of data needed and the format in which it can be optimized, etc.
In General, Outsourcing Works Better
Outsourcing a CFO is a decision that can help small businesses in several other ways:
A Word of Caution
When choosing an outsourcing agency, make sure to look around, research well, and then make a decision as to who best fulfills your requirements. Also consider drafting Service Level Agreements, research the agency’s past history, and read client reviews, if available. These can provide validation around agency’s professional performance and how well they execute projects and assignments.
The team of professionals at Analytix Solutions has experience assisting small businesses move their companies forward with the help of customized financial and accounting solutions, including outsourced CFO services. For more information on how we can help your business, please contact us at [email protected] or 781-503-9000.