When You Should Outsource Your CFO Tasks

Many companies outsource some aspects of their business operations. And so should you. One of the most important aspects of any business is the financial aspect. After all, money does make the world go around. And if you cannot balance your figures, then what’s the point in being in business? For that reason, you need to take a good hard look at your business financial situation and see whether you need to outsource it. Here are a few things that can help you decide:

1. You cannot afford a full-time CFO

Having a full-time employee as a CFO would require you to pay that person a salary commensurate with their qualification and experience. According to PayScale, the average salary of a CFO ranges from $297,230 and $471,659. As a business owner, you need to determine if you can sustain this kind of salary for your CFO. And does not make business sense for you to pay it out?

If your business revenues cannot sustain a full-time CFO, then it makes more sense to outsource this task. The good thing about outsourced CFO solutions is that you will be able to get the financial help you need for your business only when you need it. That makes it more affordable because you are only paying for the services you require when the need arises. There is no need to spend a considerable chunk of your business revenues on paying a full CFO salary in an unsustainable manner.

2. You don’t have enough time to concentrate on your core business operations

Why did you go into business? When is the last time you worked on your core business?

If you realize that you are spending a lot of time stabilizing your business instead of providing the actual products and services that make up that business, it’s time to outsource. By outsourcing the financial tasks related to your business, you will free up more time to concentrate on your core business operations. That, in turn, enables you to innovate and grow your company because you are doing what you are good at instead of stressfully juggling many business balls.

3. You are losing money and have no idea of where it’s going

Man in business attire

Studies show that 82% of small businesses fail because of poor cash flow. Money problems tend to compound themselves. If your business is suffering not just from poor cash flow but also money loss, then you are in trouble. Matters can get even worse if you end up owning the IRA money because you did not file your taxes correctly.

The reality is that you cannot do everything well. As an entrepreneur, you can succeed in creating and launching new products as well as marketing and selling them. But that does not mean you can handle the finances, especially if you have no training.

There can even be business fraud taking place right underneath your nose, but you might not be in a position to know because you don’t have the time and energy to pay attention to every single business task. So it will be wise for you to outsource your finances to a trained CFO who will provide a fresh perspective on your business finances.

If you mishandle your business finances, then you might end up having to close down. You should, therefore, find outsourced CFO solutions available in your niche and take advantage of the expertise on offer. That will leave you free to concentrate on your core business operations without worrying about fraud or keeping up with all the paperwork.

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