What Are CFO Services: A Guide

Businesses are slowly on the rebound but still face challenges. One of those challenges is managing finances. For instance, some decision-makers struggle to pull numbers together to find their biggest risks and opportunities.

If you’re facing this or a similar financial issue, keep reading to learn more about CFO services.

What Are CFO Services?

Virtual CFO services can oversee your existing bookkeeping and controller staff. They can help to make sure that all procedures have several checks and balances. In this way, a CFO service can strengthen your company’s security and ensure that you can present accurate financials.

They can also make sure that you’re using the best financial software to meet the needs of your company. A CFO service can help you to select a software solution that will help you to better run your business.

A CFO will not oversee your IT department. However, they’ll work with your IT experts to put proper safeguards in place. In these ways, CFOs help companies overcome some of their toughest financial challenges.

Looking Forward With Outsourced CFO Services

When you partner with a CFO service, they’ll generate a budget and financial projections. These reports will give you the best financial information possible. It will enable you to make sound strategic decisions about the future of your company.

The reporting delivered by CFO Consulting Services will also enable you to create a standard for holding your team accountable for achieving goals.

A CFO service might also help you to create what-if scenarios. This kind of report can help you look into the future and compare the potential impacts of key decisions before execution.

Benefits of CFO Services

A virtual CFO service can provide value for startups, private equity-backed firms, and all kinds of businesses in between. There are several scenarios in which a CFO service can help you to address your challenges.

Your reasons for outsourcing the CFO function might vary. However, it could include something like the following situation.

As an entrepreneur, for example, you may not have enough time for analyzing financial results, budgeting, and forecasting. You might hire a CFO service for these tasks.

CFOs for Businesses of All Sizes

Alternatively, you may operate a small-to-midsized business and know your customers, services, and products like the back of your hand. However, you haven’t had time to focus on dissecting your company’s finances.

Resultantly, you’ve made decisions based on instinct rather than solid financial data. A virtual CFO service can help you remedy this issue.

In another scenario, you may have raised venture capital to expand your enterprise. However, you must update your investors about customer acquisition costs, profit margins, and other vital KPIs.

However, you’re not sure how to put this information together. A skilled CFO consulting service can make it happen.

A Use Case for CFO Outsourcing

Suppose your business offers both a product and service contract for a good you manufacture. However, you don’t have the financial information needed to allocate expenses appropriately between the two products. You have no idea of what metrics to monitor for your product versus your service offerings.

In this scenario, you have no way to know if both of your offerings are profitable.

Without adequate financial information, you might as well review your critical data in a foreign language. In this instance, what you need is a capable translator that can help you interpret data and take action. A CFO service can empower you to do just that.

Putting the Pieces Together

You may not have a qualified professional on your staff to interpret important business data. In this case, a virtual CFO service could serve you well.

You make important decisions every day. However, how do you know whether you’re making the best decision if you don’t have enough information? You may have to read many signals, including:

• Cash flows
• Costs
• Financial inputs
• Inventories
• Margins
• Quantities

Misinterpreting any of these important signals could have profound negative outcomes for your access to capital, market share, and profitability.

Assessing Your Business Needs

By now, you may have started to consider that there are things that you could do more effectively. Alternatively, you may have simply felt that something isn’t right with your business.

Often, decision-makers will have these kinds of revelations after having a problem with cash flow. For instance, your financials could say your company is making money. However, you’ll find that you don’t have enough cash on hand at times to meet expenses.

In another scenario, a certain event may have triggered the need for an in-depth financial analysis. However, you don’t have time to complete the assessment. In this case, you most likely feel like you can’t keep doing things this way, and you’re right.

Finding a Good CFO Consulting Service

Working with a CFO service is a partnership. A good CFO service will start by gaining a clear understanding of your goals. They’ll help you develop a strong plan that includes analysis, projection, and tools for implementation.

A CFO service can also review your team and make sure your financial records are accurate. For example, they can help you to create a budget for each month.

Moreover, a CFO service can help you to establish accountability for the way that you do business.

Accessible Virtual CFO Services

Hopefully, you can now see how CFO services can give you a competitive edge.

At Bennett Financials, we believe that we’ve uncovered why most businesses fail within the first five years due to cash flow. More importantly, we can stop it from happening to you.

We’ll show you how to shift into a cash flow mindset. When you partner with us, we’ll show you how to optimize cash flow and keep money in your business—and in your pockets.

Don’t let your finances go without expert attention for another day. Contact Bennett Financials today to schedule a free consultation.