Why Should You Opt for Outsourced CFO Business Advisory Services

Recent advancements in accounting and finance have elevated the CFO to a crucial position within the company. As a member of the core advisory group, a CFO helps to establish corporate strategy, manage risks, and mentor executives, in addition to being in charge of finances, compliance, and internal controls. We at Profit Jets offer the best quality outsourced CFO business advisory services to help businesses conveniently manage their finance and accounting work. 

The Chief Financial Officer or CFO is one of the busiest executives in every company. The CFO generally leads the organization’s finance and accounting division. The CFO’s job is to communicate the organization’s financial health to the rest of the leadership, notably the CEO. And we at Profit Jets help you with dedicated and continuous outsourced CFO business advisory services so that you can manage your business well and focus on other aspects to achieve your business goals. 

Contrary to other areas of administration and operations, recent changes in the finance and accounting division have elevated the CFO to a crucial position inside the company. Along with the Finance and Accounts Department, the CFO assists the various departments by providing them with up-to-date information on their financial situation, internal controls, and budgetary needs that guarantee the processes function at their best. 

The CFO is given many responsibilities. They need the assistance of other accounting and finance experts in the company to do their job more effectively. And here comes the requirements of outsourced CFO business advisory services by Profit Jets. Contact us today and discuss your requirements so that we can offer you the best services within your budget.

What Does Team Profit Jets Offer You?

Private Jets offers a flexible engagement model that allows you to expand or decrease the amount of our involvement depending on your business’s size and stage of growth, enabling you to have the top CFO skills and an expert team aiding you in fulfilling your business requirements. Our outsourced CFO business advisory services are focused on the following:

• Financial Controlling
• Financial Analysis & Planning
• Analyzing ERP and putting it into practice
• Particularized Services
• Reporting Streamlined Financial Statements & Audit Closure
• Support for Valuation Activities & Funding from Controls & Compliance

Before moving forward, let’s briefly look at who is a CFO precisely and what functions our outsourced CFO business advisory services include for your businesses.

Who Is The Role Of A CFO?

The senior person in charge of overseeing an organization’s financial operations is known as the Chief Financial Officer or CFO. The chief financial officer’s responsibilities include:

• Monitoring cash flow.
• Budgeting the company’s finances.
• Identifying its economic strengths and shortcomings.
• Recommending improvement.

Because they are in charge of the accounting and finance departments, the CFO and a treasurer or controller are incredibly similar. Additionally, they guarantee the timely completion and accuracy of the company’s financial reports. Many CFOs hold CMA (Cost and Management Accountants) certification.

Get in touch with us today to get the best kind of outsourced CFO business advisory services. 

How Our Outsourced CFO Business Advisory Services Help Your Businesses?

Our outsourced CFO business advisory services are paramount to the success of the company’s operations. His main goal is to take on issues and assist the business’s finance department. Let’s examine a CFO’s duties and role within an organization. 

So, everything about your business’s finances falls under the purview of your chief financial officer. A CFO will oversee managerial duties, strategic reporting, planning, and maintaining track of the business’s financial health while offering advice to assist you in meeting your financial goals.

The main objective of our outsourced CFO business advisory service is to assist with the planning, organization, and optimization of your company’s finances. The same strategic job will be performed by an outsourced CFO (also known as a fractional CFO or virtual CFO), but rather than joining your firm as a corporate officer, they will work with you on a contract basis, saving you time and money.

The following are some of the responsibilities that our outsourced CFO business advisory services include.

• Evaluates the organization’s financial position.
• Aids in reviewing the business processes and economic systems of the company.
• Review of the business’s current financial reporting.
• Aids the business in developing and putting into practice new business strategies.
• Financial reporting automation.
• ERP implementation.
• Considering all of his experience, he can benefit the company.
• Examines the company’s internal controls and current process, and
• Analyzes the controls and the reconciliation procedure.

Rules for Contracting Out CFO Services:

When it’s time to assess their financial strategy, deal with a financial obstacle like poor cash flow or unsustainable growth, or handle situations like an audit, capital raising, etc., many businesses turn to this solution.

Before starting searching for your company’s ideal outsourced CFO business advisory service provider, it’s critical to comprehend which industries stand to gain the most from this position. You might occasionally profit from hiring a CFO consultant if you’re a sole owner or the boss of a company with little to no existing revenue. 

However, at this moment, hiring a CFO on a long-term basis isn’t in your best interests unless you collaborate with a professional business partner offering outsourced CFO business advisory services.

A minimum sales barrier of $1 million is reportedly recommended before hiring an outsourced CFO. However, according to an article in Driven Insights, organizations with lower revenue levels may still profit depending on their needs and objectives. 

On the other hand, businesses with yearly revenues of $50 million or more should consider switching from part-time CFO services to a full-time equivalent. These figures fluctuate depending on the sort of business, its financial requirements, and objectives, but they serve as a decent beginning point.

What Advantages Do Outsourced CFO Business Advisory Services Have Over Full-Time CFOs?

When compared to a full-time CFO, our outsourced CFO business advisory service has several benefits, including:

• More Independence: You must first obtain a strategic perspective or feedback and top-notch reporting from the CFO Support Services before hiring a full-time CFO.
• No person can have all the necessary talents over time. Thus all experience and skills are covered. You will gain more from a CFO Service than just the expertise of a person providing a service.
• Expertise Expenses Depending on Your Company’s Needs: Long-term continuity of working with reliable resources will be maintained with the aid of CFO Service.
• There are no geographical restrictions placed on a CFO Service. Thus you are free to use it outside of your area.

What Kinds of CFO Services Are There?

Companies that offer businesses temporary, part-time, or as-needed outsourced CFO business advisory services are known as outsourced CFO providers. They are frequently asked to improve a company’s financial strategy by putting advanced forecasts or systems in place, assist a business in overcoming a financial obstacle like cash flow problems or unsustainable growth, and help a company get through a situation like an audit or capital raise, or assist a business in achieving a goal like getting ready for a strategic exit or an IPO.

The most skilled outsourced CFOs in the business make up the preferred CFO’s exceptional team. These professionals have years of experience working as CFOs for hundreds of clients across numerous industries.

The CFO Services come in a variety of forms. Therefore, it is crucial to determine which kind of CFO Services are required for your company. Some of the various CFO services offered are as follows:

1. Financial Planning:

A more outstanding financial planning is the main advantage a CFO will offer your company. A CFO is focused on your organization’s specific short- and long-term planning, while most other finance roles in your company keep historical and present financial data. An outsourced CFO is skilled at long-term planning and identifying the precise requirements to move your business from where it is now to where you want it to be.

2. Forecasting over the short- and long-term:

One of the most crucial tools an organization may have is a financial projection. It is a thorough financial and operational plan that provides a step-by-step roadmap to help you go from where you are to where you want to be. A financial projection needs research, planning, and pragmatism. 

It necessitates strategic comprehension of your company’s present and potential capabilities, command of economic trends and algorithms, and in-depth analysis of your industry’s competitive environment.

3. Financial Systems Design and Strategy:

It could be time to reassess your internal systems and financial management software if they cannot keep up with your growth, are incompatible with your other operational and sales systems and procedures, or lack capabilities crucial to your company. 

Although outsourced CFOs don’t typically implement the existing system, they can assist with system analysis, needs assessment, designing a system combination that will work best for your organization’s current and future growth (including tiers of implementation, if necessary), selecting and negotiating with a provider, ensuring the transition goes as smoothly as possible and helping train staff on the new systems to maximize understanding, comfort, and efficiency.

4. Budgeting:

A budget details your future financials, whereas a forecast usually projects expenses and operations over five or ten years. Even though this period is shorter than the strategic forecast, a budget is crucial to an organization’s day-to-day operations. 

This budget aids in directing the organization’s financial choices for the year while ensuring that it remains on course to accomplish its objectives. A strategic CFO will frequently employ a forecast as a rolling budget to ensure your financial performance is following your company’s goals and roadmap.

5. Financial Reporting Facilitation & Interpretation:

An organization’s daily operations depend heavily on its finances, and financial reports inform you of your existing (and potential) standings. Facilitation, interpretation, and drill-down of financial statements are among the many outsourced CFO services. 

Allow a CFO to review your reports and provide the key insights that best serve your company’s needs. This allows you to get answers, adjust your strategy as necessary, stay informed of events, and have the data you require to make crucial business decisions.

Your outsourced CFO will also assist in setting up a reporting system if you don’t already have one that is trustworthy for fast, accurate financial reporting.

6. Obtaining Finance:

An organization faces a lot of stress when raising financing, but an outsourced CFO can provide services to ease the process. An outsourced CFO typically brings a network of lenders they can connect you to. An external CFO can additionally:

• Ensure that your existing accounting and financial situation is favorable.
• Discussions with prospective lenders or investors
• For due diligence, provide financial statements, reports, and records.
• Help you with capital structuring, including estimating how much finance you’ll need and determining the right combination of debt and equity financing for your objectives.
• Having an expert CFO represent you and your company will give it confidence, reputation, and professionalism.
• Review and negotiation of the term sheet

7. Capital Structure:

How much money do you need, and what ratio of debt to equity will help you maintain the value of your business while attaining the growth you want? You can get assistance from an outsourced CFO in choosing the best capital structure for your company.

8. Services for Interim CFO:

An interim CFO can support your firm in the interim whether it is going through a transition, is facing a challenge, or is in the hiring process for a full-time internal CFO. Many businesses also use an outsourced CFO in the interim period before the necessity for a full-time CFO. In these situations, an outsourced CFO can help your business employ and onboard a full-time CFO and provide as-needed CFO strategy and services as it expands.

9. Analysis of Cash Flows and Restructuring:

One of the most prevalent (and necessary) issues organizations deal with its cash flow. Increasing income alone won’t solve your cash flow problems; you also need to understand what and where you’re spending your money, which expenses are necessary for expanding your business, and which may be cut back on or modified. Outsourced CFOs examine your finances in-depth to determine ways to boost your bottom line. This might comprise:

• Contract renegotiations with vendors.
• Contract restructuring with clients.
• Ensuring that pricing reflects corporate and sector developments.
• Examining commission systems.
• Supply chain administration.
• Relating expenses to income, etc.

10. Reducing costs:

One of the most well-liked outsourced CFO services is that outsourced CFOs can typically make more (and better) strategic cost reductions than in-house staff. Because of the following, an outsourced CFO may be more efficient:

1. They will have extensive experience working with numerous businesses in your industry, giving them a thorough understanding of benchmarks against which to measure your expenditures.

2. They are more unbiased. Outsourced CFOs have no biases and make decisions based on data and expertise, unlike managers or teams who may be more invested in specific projects or initiatives that could affect their cost-cutting plan.

3. Cost reductions will be more systematic. The game of “large numbers are bad, tiny numbers are good” isn’t how cost-cutting works. Consideration, data analysis, and objectivity are required to achieve cost reduction that is long-term and that supports rather than undermines business objectives.

11. Assisting with mergers and acquisitions:

Whether your transaction entails a merger, acquisition, partial sale of an entity or asset to the public, or the sale of a commodity or asset, beneficial CFO outsourcing services could include:

• Preliminary reporting and analysis.
• Predicting financial stabilization processes.
• Guiding important team members while the sales process is being prepared.

What are the dangers of declining CFO services?

The dangers of declining CFO Support services include:

• Weak and ineffective processes
• Time and effort are wasted.
• A decline in client and investor confidence.
• Lack of essential resources when needed.
• Business possibilities are lost and poor choices made.
• Revenue Loss.
• Possibility of unnecessary legal or tax consequences.

Who in the company can help the CFO?

1. Managers of accounting:

A CFO’s primary responsibility is to help the business by ensuring that the financial records are kept up to date. Management accountants work with the CFO to create financial statements and accounts, keep tabs on project budgets and costs, and anticipate future costs and profits. 

In addition to this, management accountants must also advise the CFO on ways to save expenses. Additionally, they can assist the other managers in making wiser business judgments.

2. Financial supervisors:

In many facets of the business, the financial controller works with the CFO to provide organizational assistance. The preparation and review of key performance indicators, as well as the execution of cost-cutting measures, are crucial responsibilities of financial controllers. They support the organization’s internal controls during planning, implementation, and monitoring. The financial controllers can help the CFO with his duties by fulfilling these jobs.

3. Financial analysts:

The CFO monitors the organization’s internal operations and shifts in the economy. The CFO assists the company in running its business in numerous ways. However, the CFO cannot produce the desired results on their own. To ensure the success of his work, the CFO requires the appropriate people. These individuals will assist your CFO in their duties while also ensuring that your company meets its financial objectives.

How Does Working with a CFO Service Feel?

• A CFO Support service gives you the best chance to accomplish your objectives.
• According to your current demands and the firm’s needs, a CFO service will produce weekly or monthly reports.
• A CFO support service will take care of your bookkeeping and controller personnel, who will also ensure that all processes include several checks and balances to increase security and show accurate financial information.
• They could help you get your CFO Service ready for your board meetings.
• CFO Services will offer a financial package to provide a complete image of the business during board meetings.
• A CFO service would often provide financial reports to entice investors into the company, whether or not it offers direct investor interactions.

Conclusion

Get in touch with the representatives of Profit Jets and discuss your requirements for outsourced CFO business advisory services. We will analyze your business requirements and come up with the right solution along with offering our services consistently.