As a small business owner, you may find yourself in need of financial assistance when an issue pops up that you can’t figure out on your own. Typically, while once upon a time you would turn to your in-house accountant, on-retainer bookkeeper, or CFO (chief financial officer) to help you, a recent trend is emerging, particularly post-pandemic: outsourcing all your financial needs to remote CFOs.
An outsourced CFO is a financial expert who can provide the advice and assistance you need to make sound financial decisions for your business. What was once a must-have in your office, being always available and on-call even when there was nothing for them to do, has become possible with the magic of the internet: a fully onboard team member just a Zoom call away, for a fraction of the cost of an in house accountant’s salary.
Services like K9 Bookkeeping cater to business owners that are too busy to deal with their books and offer a full slate of on-demand financial services, effectively serving as a full-time accounting department for your business, with the most affordable prices on the market. Many, including K9, guarantee constant communication and are always available to assist you. They can do everything from running payroll and invoicing/expensing to producing reports and offering financial advice.
There are many benefits to outsourcing the management of your books and finances, including access to experienced professionals, cost savings, and flexibility. Here’s everything you need to know about outsourced CFOs and how they can help your business grow.
What is an outsourced CFO?
An outsourced CFO is a financial expert who provides advice and assistance to businesses. They typically have experience working in finance or accounting, and they can offer guidance on a wide range of financial topics.
Outsourced bookkeeping companies can help businesses with everything from typical bookkeeping and tax preparation to developing long-term financial strategies. They can also provide guidance on specific financial decisions, and produce reports on the financial health of your business. Many, including K9 Bookkeeping, offer additional services including receipts and documents entry and storage, bank and credit card reconciliation, running payroll and AR/AP services, and much more.
Why should you use an outsourced CFO?
There are many reasons why businesses choose to outsource their CFO. One of the most common reasons is access to experienced professionals. When you outsource your CFO, you’re tapping into a wealth of knowledge and experience that you might not have otherwise. This can be especially helpful if you’re a small business owner who doesn’t have a lot of experience with finance or accounting.
Another reason businesses outsource their accounting needs is cost savings. Hiring a full-time financial professional can be expensive, especially for small businesses. You need to account for their salary, office space, and all the professional things they need to do their work effectively. When you choose to outsource your accounting needs, you only pay for the services you ask for. This can be a more cost-effective solution for businesses that don’t have the budget for a full-time CFO.
Finally, outsourced CFOs offer flexibility. You can choose how often you want to use their services, and pick which packages work best for you. This can be helpful if your needs vary from month to month or if you only need occasional assistance.
When should you use an outsourced CFO?
You know you’re ready to outsource your accounting when it’s taking too much of your focus and money away from your business and you are ready to hand over the reins to someone else.
How to outsource your CFO
If you’re interested in outsourcing your CFO, there are a few things you’ll need to do. First, you’ll need to find a financial expert or accounting firm who you feel comfortable working with. This may take some time and effort, but it’s important to find someone who you can trust to make sound financial decisions for your business. Do your due diligence before handing the keys to your business to someone who may not be right for you.
Once you’ve found a financial expert you want to work with, the next step is to develop a plan. You’ll need to decide what services you need and how often you’ll need them.
Finally, you’ll need to put together a contract. This contract should outline the scope of work, the fees, and the timeline for the project. Once everything is in place and you’re signed on, you’ve outsourced your CFO!
Related: Why You Should Use K9 Bookkeeping?
We’re happy you found this article informative! Go back to our blog page to find more tips, tricks and guidance on bookkeeping, to ensure your business is financially sound and ready to grow to the next level.
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