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When Is the Right Time to Hire an Outsourced CFO?

If you’re the leader of a growing company, understanding when to outsource CFO service or certain essential roles can be a challenge. For example, when you need a CFO, is it best to hire a full-time employee or to source the expertise from an outside CPA firm? Depending on your business’s needs, an outsourced CFO may be the smarter choice.

When Is It the Right Time to Hire an Outsourced CFO

Five signs suggest that the time has come to look for an outsourced CFO:

  1. You don’t have the bandwidth. The workload of a CFO is quite rigorous, no matter the size of the company. If the internal team is already stretched thin and unable to manage the added responsibilities, it’s time to consider an outsourced CFO.
  2. You need a financial roadmap. Solid financial strategy involves much more than creating a budget and other basic financial planning and accounting tasks. An outsourced CFO can provide a financial roadmap that helps align your business’s operational and financial goals.
  3. You’re considering raising capital or annual revenue. Whether it’s a loan, an equity offering, or some other form of capital raise, Outsourcing brings in an outsider with deep financial experience with the help of qualified CFO to guide you through the process. The Offshore Bookkeeping Can Save CPA Firms Money and Improve Cash Flow as well.
  4. Achieving the “next step” isn’t quite within reach. Many startups and small enterprise business owner need help reaching the next level – such as entering new markets, accessing new clients, or expanding into new areas. An outsourced CFO services can provide the resources, creativity, or strategy needed to reach these goals.
  5. You’re not sure how to invest profits. A successful small business needs to reinvest its profits for sustainable growth. If you’re looking for advice on how to invest the money your business brings in, an outside financial expert can help you create a strategy based on your business’s needs.

Read More: Outsourcing Bookkeeping Services: Best Practices for CPA firm 2023

When making the decision to hire an full time CFO, keep in mind that there are several types of CFOs available like virtual cfo, part time cfo, etc. Make sure to find the right one that your business’s priorities and challenges. Ask questions to gain further insight into the potential candidate’s capabilities and experience.

Ultimately, a good CFO should be able to provide more than just financial expertise. To succeed in the long-term, a financial pro must be able to use their knowledge to provide non-financial insight, such as strategic recommendations and market assessment. By taking the time to find the right fit, you’ll put your business in a great position to achieve long-term success. Safebooks Global offers Best Offshore and outsourced tax and accounting services for CPA firms. Request for a Free Trial and avail the benefits.