Today’s small businesses face an ever-changing and increasingly competitive business environment. A results-oriented financial strategy, properly implemented and managed, is essential to business success. In many businesses, the Chief Financial Officer oversees the management of cash flow and financial risk.
According to salary.com, while the average yearly salary of a Chief Financial Officer can vary based on a number of factors, the median compensation for a CFO in the United States is $313,541 per year. Most small businesses cannot afford the salary of a full-time CFO but fortunately, there is a way for a small business owner to be able to afford the valuable services and knowledge of a CFO. It all comes down to hiring in a nontraditional sense but at a fraction of the cost.
There are numerous reasons why small businesses today are choosing a virtual CFO over a full-time CFO. If you’re not one of these businesses, now may be the time to reconsider.
Hiring an outsourced part-time CFO provides a lot of benefits. Here are the top reasons your small business should consider.
1. They offer small business some much-needed flexibility.
One huge benefit of hiring an outsourced CFO is flexibility. Small business owners who employ outsourced CFO’s have the flexibility to engage and use the outsourced CFO when they need them. Most CFO’s allow you to specify the numbers and hours you need them depending on your requirements, which means you only pay for what you need. Additionally, hiring a Virtual CFO is beneficial since they can be tapped whenever you need them.
2. They’re often multi-talented multi-taskers
Part-time and Virtual CFO’s usually consist of a team of knowledgable and highly experienced consultants who have serviced many different clients with different needs in a wide range of industries. When you hire an outsourced part-time CFO you get access to a vast pool of knowledge and expertise that you would likely not get when you hire a single full-time CFO.
In addition to managing the role of accounting, projections, payroll processes and bookkeeping, part-time CFO’s are trained to manage a variety of tasks for your small business including cash flow analysis, planning for capital expenses, and negotiating contracts. Another benefit of bringing in an outsourced CFO is that the business can add a layer of strategic skills beyond the tactical accounting role, with said skills including succession planning, strategic planning, and forecasting as well as insurance and risk management.
3. You work with a team, not just an individual
When hiring a full-time CFO, you are relying upon and making use of the knowledge of a single professional, which in many cases, can be limited. A part-time CFO, on the other hand, consists of a team of professionals with different expertise and multiple sets of eyes on each project. Since a team of professionals is working on your financial obligations, the amount of time it takes to complete them is significantly shortened making it appropriate for businesses that run on limited budgets. With multiple sets of eyes on each project, the chance of any errors is also significantly decreased.
4.You can get them at a fraction of the cost
Start-ups and small businesses typically do not have the resources to hire a full-time CFO, especially since a financial adviser of this professional level can cost a lot. Outsourced part-time CFO’s charge based on a consulting agreement. Small business owners have the flexibility to increase or decrease the outsourced CFO’s hours based on the needs of the business owner and company. Additionally, since you get to work with a team of experts, the value you receive for the price is much greater than hiring a full-time CFO.
5. They have the ability to adapt to your changing needs
The goal of your small business is most likely to continue growing and increasing profits. Outsourced part-time CFO’s have the ability to meet small businesses evolving needs and continue to grow and expand with the company. The flexibility of virtual CFO’s allows them to adapt to the changing needs of your small business, and the financial aid they provide can be tweaked depending on your current requirements.
Limitless Investment and Capital’s Outsourced Part-time CFO Services for Small Businesses
Limitless Investment & Capital provides growing and established organizations with experienced CFO-level talent on an outsourced, part-time basis at a fraction of the cost of a full-time employee. Our CPAs and consultants provide specialized skill sets to navigate times of transition when you can’t afford to be without a CFO. We price our service offerings very sharply at rapid mandate turnaround times and place exceptional quality CFOs, Financial Controllers, and Analysts on the project, by leveraging on our varied and wide resource database pool.