Why You May Need a Contract CFO

If your business is facing finance or accounting-related challenges such as:

  • Lacking executive-level talent with accounting experience
  • Falling behind on financial statements
  • Unable to identify and use the best accounting software
  • Owner having to focus too much on the numbers and not enough on the big picture
  • Struggling to keep up with financial flow when there’s a gap in finance or accounting-related positions
  • Trouble nurturing relationships with investors, venture capitalists or auditors

And if your business is facing other challenges like:

  • No experienced executive available to make key, often urgent decisions
  • Executive is required but business is such that the owner can’t justify bringing on a full-time CFO

…then an outsourced, contract CFO is the perfect solution to your problems.

Most small and mid-size companies struggle when it comes to accounting and finance. Sound financial management isn’t easy. It takes a talent for numbers. It also requires the training which allows one to understand the way those numbers impact the business at every level. Thus, it’s very challenging to make sound financial decisions, unless, of course, financial management happens to be the business owner’s particular specialty. It’s little wonder that most business owners play uncomfortable and overwhelmed as they attempt to play the roles of bookkeeper, accountant, and CFO all on their own.

Contract CFOs are a great way to solve this problem, because they work alongside business owners to ensure critical financial decisions are made in a timely manner.

How a Contract CFO Benefits Businesses

CFOs play a very specific but multifaceted role in any company. Common tasks for contract CFOs include:

  • Overseeing everything related to finances, including accounting and auditing
  • Financial planning and strategy
  • Developing and maintaining a budget
  • Implementing financial strategy, including adjustments to the entire financial infrastructure
  • Identifying areas of improvement for operations and finance
  • Choosing and implementing the right software for a company’s accounting needs
  • Managing cash flow
  • Managing debt and financing
  • Preparing a company for an audit
  • Preparing for and relating with banks and investors
  • Analyzing profitability of new ideas, products or services

Now imagine if a business owner had all of that on his plate, in addition to his other concerns. It’s easy to see how companies that function without a financial expert like a contract CFO run into trouble.

Contract CFOs Mentor Business Owners

A contract CFO can teach you more about key areas of your company’s financial operations. This means that business owners actually emerge from an engagement with a contract CFO better prepared to do some of the tasks a CFO performs.

It also means you’ll be able to vet candidates for a permanent CFO more easily as you’ll have a better sense of whether someone is truly talented.

Contract CFOs Increase Profits and Pave the Way for Growth

Even big businesses started small at one time. Whether your goal is to own a multi-million dollar corporation or simply to expand a little, you can’t do either when your finances are a mess. A contract CFO ensures all the figures are correct and all financial operations are in shape and scalable so you can take your company where you want it to go.

By analyzing trends and identifying ways to cut costs, contract CFOs can also make you business more profitable. I can’t think of a single business type in any industry that would fail to benefit from the kind of advice contract CFOs provide. But I can think of plenty that could be making more money if someone was watching carefully over expenses and opportunities for improvement.

Contract CFOs Help Make Tough Decisions

A CFO is truly worth his weight when he helps a business owner make difficult decisions that relate to the company’s finances. Our CFOs, for example, are comfortable offering unbiased and unflinching advice. And you can rest easier knowing that whatever ideas you come up with, you can always get an honest second opinion from a financial expert.

Contract CFOs Are Budget Friendly

In addition to overseeing your budget, contract CFOs are also easy on your budget. Unlike the cost of maintaining a full-time in-house CFO, outsourced CFO advisory services allow you to take advantage of all the perks of a CFO without the expense.

At Shared CxO, our contract CFOs are basically on call as-needed. You can engage them daily to carefully monitor your company’s finances or just keep them on the back burner for times when a CFO is especially handy – like the aforementioned and usually dreaded audits, or a review of figures at regular periods.

Ready for a Contract CFO?

If you think a contract CFO is a good fit for your business, you contact us any time to discuss your needs. You can also find more information about our services on our CFO Outsourcing and Advisory page. You’re also welcome to peruse our membership options and packages and get in touch with us if you have any questions.