In today’s world, company leaders are no longer limited in the ways they can receive help. Having on-staff positions for every task isn’t always ideal or even necessary. Accounting is one of the most frequently outsourced functions, with data compiled by Fortunly indicating that small businesses are looking outside of their in-house capacities for 37% of their accounting and IT tasks. Companies are quickly catching on that more roles can be outsourced to save time and money while still getting the results they need. This is why outsourced CFOs are much more common than you might think. In this installment of our in-depth series, we continue exploring how CPAs provide critical support to small businesses through outsourced CFO services.

Getting Back in Control

Just because it’s your business doesn’t mean you always feel in control of it. In fact, surveys of successful CEOs often show that they doubt the health of their finances, feel they lack the proper technology, or worry that their staff is ill-equipped to face future challenges. The paradox is that the more entrepreneurs try to control, the less in control they tend to feel. This is why delegating is one of the most critical skills a CEO can master. Delegating to the right people clears your plate so you can focus on doing your job — your real job — more effectively. 

Even the most successful small business owners can find themselves in challenging financial waters. Some CEOs end up stretching their line of credit. Others pour too much money into hiring, inventory, marketing, and other seemingly urgent tasks without managing cash flow. This can lead to taking out more loans and getting even more submerged in money problems. 

No one goes into business hoping to accumulate debt. Every business owner knows the value of strategic financial planning and management, but pulling it off is easier said than done. Small business owners may especially lack the support they need and feel the pressure of budgetary constraints weighing on them. Finance oversight is best handled by a CPA who is highly experienced in dealing with a wide range of financial matters — someone who can take concise action when it counts and oversee operations with an eye out for red flags. A good CPA is like the mechanic of a business, always checking in and making small adjustments to help it run smoother.

BradyRenner’s experienced CPAs have extensive expertise in filling the role of a chief financial officer (CFO), offering services such as:

• Creating accurate financial presentations and reports
• Providing forecasts for your business
• Giving guidance to new businesses
• Reviewing contracts and budgets
• Tracking KPIs of financial wellbeing
• Planning and modeling possible outcomes
• Collaborating with your legal team
• Ensuring compliance

The value of an outsourced CFO, in particular, is that they see through a more objective lens. They aren’t working side by side with you or butting heads with other team members. Not being immersed in your business 24/7 means they can help manage it with a clear head. 

When you hire a CPA as an outsourced CFO service provider, they have a birds-eye view of your business. They provide insight and guidance based on what they’ve seen work best in other organizations. CEOs can relax knowing that their financial matters are in good hands and are being actively monitored by someone whose specialty is financial management. This peace of mind empowers business owners to move forward and make decisions that may have felt less clear or more risky without expert support. With a good outsourced CFO in your corner, decisions are made confidently, and actions are taken strategically rather than haphazardly.

Finding the Right CFO for Your Business

There are a few essential elements to consider when looking for outsourced CFO services. Along with their personal background and repertoire of skills, you’ll want to assess cultural fit. Having a similar mindset and communication style allows meetings to run smoothly. It’s also vital to be clear about your expectations up front, and to ask your chief financial officer to share their expectations of you as the business leader. Depending on your unique business model and where your company is headed in the near future, your CFO should provide complementary skills. Industry expertise helps, but a variety of financial experiences is also highly advantageous.

Another factor to consider is proximity and time — How close do you need your outsourced CFO to be? Fortunately, these logistics are way easier to figure out in today’s flexible workplace. You may only need a chief financial officer for 10 hours a month to handle recurring tasks like reports and statements, or you may want someone on hand more frequently to hop on a quick phone call or Zoom chat to answer questions as they come up. The best thing about outsourced finance is the flexibility and affordability you can enjoy without sacrificing professionalism. Outsourced CFOs don’t need an office in your building or a full-time salaried position. All they need is to be let in on your financial situation, goals, and challenges. 

Get Outsourced CFO Services that Make a Difference

Ultimately, business owners reach out for help because they want to see improvements in how their business operates. Whether it’s more effective marketing, better design, or control over their finances, every facet of help should have a clear return on investment. This is something a seasoned outsourced finance professional can help you achieve — even in regard to their own service — by tracking expenses and returns over time. Little by little, you should see an improvement in your ROI and a reduction in unnecessary expenses. Making every dollar count is part of your CFO’s job. 

Getting help from an outsourced CFO can mean:

• No longer having to worry about balancing your books
• Getting help with decision-making
• Aligning your budget with your growth goals
• Stronger communication within your team
• A clearer outlook on your priorities and action steps for the future

BradyRenner’s team has decades of combined experience working with small business owners to fortify their finances in every area. Our CPAs understand the challenges of running a small business and have the expertise to guide you in managing your finances for profitability and growth. If you’re considering outsourced CFO services in the Maryland area, consult with your BradyRenner CPA for more info.