Growing Your Business

4 Reasons your business can benefit by working with a Part-Time CFO

4 Reasons your business can benefit by working with a Part-Time CFO

If you are considering scaling up your operation, struggling to cope with your financial responsibilities, or worrying about the right direction for your business, then outsourcing your CFO can help. CFO outsourcing follows the same model as IT or even maintenance outsourcing, and it offers many of the same benefits in cost, time and training savings, coupled with the benefit of having an expert handle your business. From accessing valuable knowledge and expertise without the big ticket price tag, to freeing up a significant portion of your time, outsourcing your CFO responsibilities can help your business thrive.

4 Reasons to Outsource Your CFO

Save Time

Opting to outsource your CFO functionality frees you up to focus on other aspects of your business. Since the person you hire is already an expert, you avoid the learning curve that comes with handling the financial aspects of running your business; the tasks that take you days to struggle through can take a skilled pro only minutes or hours. Small- and medium-sized business owners are skilled at wearing many hats and handling many tasks, but a time comes in every enterprise when you truly need expert help – and when the paperwork and processes are interfering with your ability to effectively manage your business.

Growth and Strategic Planning

Scalability is also a key area that can benefit from some outside, objective expertise. If you know you can expand, but are not sure how to best approach the process, then an outside CFO can take an objective look and help you make the most of your investment and time. You know your business inside and out – which is usually a good thing – but that knowledge can cloud your objectivity or prevent you from trying avenues that may be more beneficial to your operation as a whole. Most businesses are not blessed with unlimited capital, so you need to deploy your assets in the most effective and efficient way possible to make the most of what you have. By hiring a seasoned pro to take a clear look at your operation, you could scale up more quickly and more reasonably and avoid some of the common mistakes made by small business owners as their enterprises grow.

Omit the Learning Curve

You may be able to cover most topics and gain an understanding of what you need to do to function, but unless you have extensive business financial management know-how or training, you could be missing out. An expert already knows the basics and can easily ensure that you are both fully compliant with tax regulations and find actionable ways to help your business save money and thrive. Discovering a single tax loophole or law that can be used to your advantage can save your business thousands each year, while properly setting up your accounts and processes can direct revenues through your business in the most advantageous way. 

When you hire a third party to help you plan, operate and maintain the financial aspects of your business, you gain all the expertise of a solid professional without having to go through the training or experience required.

Save Money

Hiring the financial help you need to successfully strategize and manage your business could be out of reach — unless you opt to outsource. A recent piece from Investopedia reveals the salaries of a top-flight CFO — most make almost 500 grand per year; outsourcing your needs on a case-by-case basis allows you the ability to access the expertise you need without the huge salary, perks and benefits package a full-time professional would require. Outsourcing also allows you to avoid costly turnover and downtime; experts at the Society for Human Resources Management estimate that professional employees can cost you up to 150 percent of their annual salary each time they turn over. Outsourcing can eliminate the high fees associated with finding, hiring and onboarding a new professional for your team. 

Its easier than you think to find a qualified CFO to help you with your financial planning and tasks; cloud computing and web conferencing allow you to look beyond your own backyard to truly find the most qualified professional for your business. So many businesses fail to thrive, not because of the lack of ideas or concept, but because they are negatively impacted by a lack of financial direction and sound strategy. Looking outside your business for financial planning and strategy can help you succeed and ensure that you can make the most of your enterprise.

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Tera Kovanes

Tera Kovanes

Tera D. Kovanes, CPA is a Certified Public Accountant (CPA) practice based in Henrico, Virginia. She can assist you with your tax preparation, planning, accounting, payroll and bookkeeping needs. She specializes in outsourced or part-time CFO work. In addition to being a CPA, she also is a Certified Fraud Examiner.

Tera D. Kovanes, CPA
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Virginia

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