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Supercharge Your Superannuation & Maximise Your Retirement Savings

Welcome back everyone. In the sixth and final part of my blog series, I want to discuss something that affects all of our financial journeys: Superannuation. Perhaps you’re concerned about your retirement savings? Or maybe uncertain about how to make the most .....

CFO - 8 min read

Small to medium-sized businesses reach a point in their growth where access to the skills and talents of an experienced Chief Financial Officer (CFO) is required. 

The question they often have? Is there enough work to warrant a full-time CFO? The answer is yes. If ever there was a time, it would be in the stages of growing your business––however, it may not be in the traditional manner you have come to expect. Enter outsourcing.

Small to medium-sized businesses may better benefit from an outsourced CFO, a service that allows you to leverage the services of your accounting firm. Giving you all the trimmings of an internal finance department, but only when and what you need it for.


What is Outsourcing? 

Investopedia defines outsourcing as hiring a party outside a company to perform services or create goods traditionally performed in-house by the company's employees and staff. 

The most common reason for outsourcing is to cut costs, including labour, infrastructure, and technology, to name a few. By outsourcing less critical business functions to outside providers, businesses can hone in on the core aspects of their business.


What Could an Outsourced CFO do for Your Business?

A CFO is responsible for the financial measurement systems that drive your business. But what exactly could your business gain from outsourcing this function

A CFO can:

  • Measure what matters to your business and analyse the numbers and trends;
  • Let you know when preventative actions are required and help your management to create thorough processes, forecasts, and plans;
  • Ensure that your cash flow is managed so well that you never run out of cash or need to borrow hastily;
  • Report on profitability compared with targets and make sure you operate with compliance to relevant laws; and
  • Liaise with you and the key decision makers and can become a critical strategic adviser. 


The Value of an Outsourced CFO

Outsourcing allows you to hire proven talent while aligning with objectives that work best for your business and its goals.

Cost Effective

An outsourced CFO service can offer a business the functionality and benefit of having a highly skilled and experienced Chief Financial Officer (CFO) that would otherwise head their internal finance team at a significantly reduced cost. 

Outsourcing relieves a business of the overheads associated with employing full-time staff. Rather than paying a fixed monthly wage to a full-time worker, outsourcing reduces a business of the overheads associated with hiring a senior financial manager. Companies pay only for the time they use, leveraging more control over business assets and the opportunity to scale their finance function up or down as their business changes.

Business Growth

By scaling your business through outsourcing, you reduce overhead costs and the need to invest in costly infrastructure. You are reallocated time to focus on your core business functions, allowing you to build your brand better and grow your business. 


How to Scale Your Business with Outsourcing in 5 Steps

To begin any business scaling, you'll start by assessing the needs of your business and deciding how you want to maximise your return on investment. 

You'll then want to do your research and select a business adviser that you feel comfortable with, one that aligns with your business objectives and with whom you feel confident in passing over a degree of control to benefit your business.

Here are some strategies to help you get started:

1. Identify the Task to be Outsourced

In this instance, you'll want to outsource the roles that are beneficial to your business, a CFO. Before outsourcing a CFO, ask yourself the following questions:

  • Am I bogged down in the day-to-day?
  • I make money, but do I have cash?
  • Are the difficulties in my business a result of a material change or shock?
  • Do I have more work than you can keep up with?
  • Do I feel out of control?
  • Am I confident in my financial data?
  • Have I received a large and unexpected tax bill?
  • Am I struggling to maintain cash flow?
  • Do I need help funding rapid growth?
  • Do I need to supplement my existing finance team?
  • Do I need to restructure my borrowing arrangements?
  • Am I seeking a more cost-effective solution for a full-time CFO?
  • Have I found another cash hole?

Business owners often wear so many hats that it starts to blur their days. Managing staffing, marketing, products and services, compliance, tax, cash flow, reporting, and everything in between can quickly bog you down in the day-to-day.

Outsourcing your CFO function can unburden you from time-consuming financial duties and allow you to focus on the activities that will grow your business. 

From cash flow management and reporting to business planning and technology solutions, an outsourced CFO can ease your daily struggles and guide you and your team to where you want to go.

2. Divide Tasks Into Projects

Simplify the outsourcing process by dividing your tasks into projects. Then work to create a development plan that ensures everyone is on the same path and working toward the same goals. Be specific––no one knows your business inside out as you do.

3. Identify Potential Outsourcing Service Providers

The success of your outsourcing objective depends on the organisation you partner with and how well they align with your business. A Google search will tell you that there are many out there, so be sure to research to narrow down those that might fit your needs better than others. 

To begin, review their reputation and check out their credentials while identifying the following: 

  • Do they have a good track record?
  • Do they have access to proven talent?
  • Do they have a reliable infrastructure?
  • Do they utilise the latest technology?
  • Do they have adequate security in place?

Assessing the above mentioned will help you to narrow down your list of potential outsourcing partners. The next step is then to evaluate their strengths and weaknesses.

4. Evaluate Strengths and Weaknesses

When outsourcing, you want a positive return on investment, and to get this, you'll need a partner with capabilities that are second to none. You'll be able to evaluate their capabilities by assessing their strengths and weaknesses. 

Compare service providers by assessing the quality of their results and the speed and ease at which they can deliver them. Communication is also crucial––what channels are available, and how readily do they respond to queries?

When you've narrowed it down, it's time to make contact.

5. Getting Started

Once you've identified an outsourced CFO provider capable of delivering high-quality, cost-effective results within a specified time frame, you're ready to start. Freeing up time, money and resources to allow you to focus on what you do best––your core business.

You can better focus on your business and what you do best when you don't have to trouble yourself with reporting, compliance, budget forecasts, taxes, and cash flow. You can be the kind of leader you feel comfortable being, knowing that the financial direction of your business is clear and focused.

Get in touch with us at Altus Financial to learn more about outsourced CFO services and what they can do for you. We look forward to talking with you.

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