The Role and Rewards of an Outsourced CFO
The role of a chief financial officer (CFO) is complex, but basically their job is to advise on the financial performance of a company including its reporting, liquidity and return on investment.
The rapid developments in technology, Cannabis and Crypto currencies have changed the accounting and finance industry. As a result, the role of the CFO has also evolved and their job is more important now than ever before.
A full-time CFO in Canada can cost a company at least $122,000 a year and can go up to $275,000. This is challenging for many startups and smaller businesses. But now they have the option of hiring an outsourced CFO, also called a contract CFO, that works part-time or on project basis at a fraction of the cost.
How a Contract CFO Helps Companies
Contract CFOs have extensive experience in high level corporate financial roles. A part-time CFO is not less impactful than a full-time one because of their years of experience.
Here are a few ways they help companies:
- Provide high level financial strategy, systems analysis and operational optimization
- Resolve challenges like cash flow issues
- Implement more efficient systems
When to Hire an Outsourced CFO
There are many situations when a company would benefit from having an outsourced CFO including when a company:
Needs to raise debt and equity capital by having the CFO attend meetings to establish expertise and negotiate terms.
Needs a financial forecast to help budget, restructure or analyze the company’s health.
Maximizes margins by having the CFO analyze costs and pricing structures.
Is evaluating an M&A transaction, from the planning and evaluation phase to business integration.
Take your business to the next level. Contact us if you have questions or want to use our contract bookkeeping and accounting services.