When to "Rent a CFO?"


A recent article offered some good advice for small businesses on when should a company consider hiring an outsourced CFO (i.e., “Rent a CFO”).

The article outlined some of the following key benefits and considerations in deciding on whether to hire an outsourced CFO.

  • High-level financial expertise without a full-time salary

“Many business owners believe they could use the services of a CFO but lack the resources to add one to their payroll on a full-time basis. Renting or outsourcing this type of service is often an attractive option, as it allows growing businesses to gain the financial and operational expertise to take their company to the next level, without requiring a costly, multi-faceted compensation package.”

A little bit of time from an experienced CFO can go a very long ways in helping a small business increase their profits and cash flow.

  • Reduced financial risks & other benefits

“Growing businesses often require more sophisticated and strategic guidance than a bookkeeper or controller can provide. Outsourcing CFO services may be the most efficient way to bring this level of expertise to your business….

“An outsourced CFO will work closely with business owners on financial strategy and analysis. By collaborating with a financial expert at this level, you can plan and implement initiatives designed to reduce costs and increase profits in both the long and short term.”

  • Many possible areas of financial, accounting, and strategic impact

“They [CFOs] can oversee financial and accounting functions and train staff on accounting best practices and technologies.

“They can develop cash flow improvement programs, manage capital to improve profitability, and produce accurate, meaningful financial statements…. They can evaluate internal controls and help initiate protocols to reduce the risk of theft and fraud, as well as serve as the business liaison with potential lenders, investors and other outside financing sources….

“In addition to CFO duties, outsourced accounting services can cover an array of necessary responsibilities in your organization. Payroll, general ledger maintenance, technology training, as well as accounts payable and accounts receivable services are all standard to many vendors in addition to CFO duty fulfillment, and it may be practical for your company to explore these options.”

There are many other benefits to considering an outsourced CFO as well.

Read the full article


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