Before You Hire that CFO: 5 Reasons to Consider an Outsourced CFO
There are many reasons why businesses make hiring decisions. As a business grows, one of those key roles needed is a Chief Financial Officer. Before you hire this role, it is important to think about alternatives, including an outsourced CFO who can easily meet all your needs but also produce additional value. Here are five reasons why you should consider an outsourced CFO.
Business Skills Beyond Finance
An outsourced CFO generally has experiences that are relevant to a growing company that extend beyond finance. If this CFO is responsible for selling her own services, that sales experience alone is worth additional value to your company. We have helped clients close deals while being outsourced CFOs.
Broader Industry Experiences
Even if your outsourced CFO works in one industry, say technology, they generally have more diverse clients within that industry. An outsourced CFO who works in technology may have a health technology client, a software client, and an education technology client. Those experiences can further help your business grow.
Greater Finance Experiences
If you’re saying I don’t need any of the previous two experiences, let’s talk about finance skills. An outsourced finance executive has typically had some experience in auditing at a major accounting firm followed by some level of accounting experience and finance experience within industry. This level of both accounting and finance experience is helpful in understanding both the strategic (what investments do we need to make to be here 5 years from now) and the tactical (how to close the books more efficiently).
Better Technology Skills
With a significant amount of experience, an outsourced CFO likely has used more ERP systems and has an understanding of how systems work so that, even if he does not know one, the learning curve is quick.
Better People Skills
The best finance leaders have people skills. An outsourced CFO, with experiences at other clients, generally has better people skills and can help your company hire and groom the in-house talent that will replace him or her.
GrowthXel is Growth X.el.erated. We help clients Accelerate Revenue growth and Optimize Results.