Why Do Businesses Outsource CFOs?

Small and mid-sized businesses that wish to stay relevant in today’s competitive market understand the importance of investing in their financial profile and, therefore, often opt for outsourced CFOs to ensure accurate and compliant financial reporting. Learn about what’s included with a Windes Fractional CFO and how your business can benefit. 

What are Outsourced CFOs?

Outsourced, or fractional, accounting services focus on finance and accounting functions to ensure business growth and success. The goal is to help businesses address challenges arising from a lack of advanced financial expertise within their in-house accounting teams. An outsourced CFO is a part-time CFO for small- to medium-sized businesses who provides expert services to help companies overcome financial challenges, optimize strategy, generate revenue, raise capital, achieve sustainable growth, implement rigorous financial systems, and more. Their CFO duties may include executive management, company oversight, and business turnaround. An outsourced CFO can offer the following valuable services:

• Overall financial analysis to determine the strengths and weaknesses of the company
• Analyze cost and pricing structure to improve profit margins
• Budgeting, forecasting, financial needs assessment, and other financial planning and analysis functions
• Assessing the economic feasibility and sustainability of new products/services for the business
• Providing expert advice on the debt/equity mix to raise business capital
• In-depth analysis of M&A opportunities
• Preparing financial presentations for board members, investors, and other shareholders
• Assistance with quarterly financial reporting
• Assistance in determining when and how to procure loans or investments

 

Why Businesses Adopt Outsourced CFOs

Outsourced CFO services enable small firms and entrepreneurs to access financial experts as needed, without committing to an in-house resource. This is not only convenient for business owners but also more affordable. These services can help business owners make the right business decisions by providing them with highly organized, critical, and accurate financial information. Informed decisions ultimately impact all aspects of business, including services and products, inventory, cash flows, costs, margins, profitability, market share, and more. HowWindes Outsourced CFO Services can assist businesses with the following situations:

• Initial Business Success – Entrepreneurs often need Fractional CFO services once their business takes off. Outsourcing activities like budgeting, analyzing financial data, and forecasting allows them to focus on business operations.
• Informed Business Decisions – Small and mid-size companies understand what their customers want and how to deliver products and services that meet those requirements. However, the inability to dissect the business’s financial aspects can lead to instinct-based decisions rather than decisions backed by financial facts and data.
• Immediate Need for Financial Experts – Often, businesses run smoothly with a one-person finance department for a long time, until the employee hands in their notice, creating an immediate need to rehire. In such a case, it is better to opt for Fractional CFO Services to streamline business operations.
• Raising Venture Capital – An increase in venture capital for business growth means investors need updates on expected profit margins and other key elements, such as customer acquisition costs. Fractional CFO Services can put this information together to help inform and satisfy investors.
• Inability to Comprehend Financial Reports – Understanding and interpreting company financial data and reports requires specialized financial expertise. You may have the best bookkeepers and controllers at work, but if they cannot generate in-depth financial statements and reports so you can easily see your company’s financial health, it may be a good idea to look into Fractional CFO Services from Windes.
• Unsatisfactory Business Performance – If your business is not performing as it should, you may need a new expert perspective to understand its shortcomings and develop the right game plan to overcome these challenges.

 

Windes Fractional CFO Services

A recognized leader in accounting, assurance, tax, and business advisory, Windes provides Fractional CFO Services tailored to meet any business’s unique needs and has customized plans to match your company’s needs and requirements. Our Fractional CFO Services let you focus on day-to-day operations. We possess the financial expertise necessary to propel your business toward success. Below are some unique benefits of choosing Windes for your outsourced accounting needs.

• Flexibility: The financial service needs of an organization vary over time. Windes can accommodate those changing needs and deliver flexible services designed when you need them most. Our Fractional CFOs work alongside existing employees, offering a more customized approach that helps the company achieve its goals.
• Bench: Windes can support all financial functions. It is the one-stop service provider for all needs, including Fractional CFO, Fractional Controller, accounting services, payroll, sales tax, and more.
• Approach: Our approach focuses on team building and leveraging the team’s strengths to deliver flexibility and scalability.
• Technology: An advocate of advancements in fintech, Windes leverages state-of-the-art technical software and tools to produce agile, accurate, and practical solutions. Furthermore, we can assist with technological transformations to ensure a seamless transition and provide training as needed.
• Growth: Business growth and success are the ultimate goals of any organization. Our team has the expertise and experience to position your company for growth, whether organically or through targeted adjustments to your existing approach. We will work closely with you and your team to create a roadmap that takes into account your current resources and in-house capacity, covering the gap between where the business stands and where it wants to be in the future.

Our Fractional CFO Services are outlined below and include our Advanced Outsourced Accounting Services.

Advanced Outsourced Accounting Services 

• Bank and Credit Card Reconciliation
• Recording Payroll Journals
• Form 1099 and 1096 Filing
• Management of Fixed Assets and Depreciation Schedule
• Form 571-L Property Tax Filing
• AR Invoicing and Recording Payment Receipts
• Accrual Adjustments
• Automated Accounts Payable

 

 Fractional CFO Services

Our Fractional CFO Services include all of the Advanced Outsourced Accounting Services above, along with the following:

• Financial Planning & Analysis – including Financial Reports: Income Statement, Balance Sheet, Statement of Cash Flows, Profit and Loss % of Total Income, Revenue and Expense Graphs, Period Comparison
• Windes Accountant Insights
• M&A Advisory and Due Diligence Support
• Strategic Planning and Assistance with Decisions
• Board Advisory
• Budgeting
• Forecasting
• Contract Negotiation
• Manage Bank Relationships
• Scenario Planning
• Capital Raising

 Let Windes help you scale for the future. We will focus on your financials, providing the financial expertise essential to accelerate growth so you can focus on your business.Ready to grow without growing your full-time team? Get started today!