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.
Overview
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.
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