Yes, outsourced CFOs can help you navigate financial crises by assessing the situation objectively, developing crisis management strategies, and implementing measures to stabilize the financial situation. These experienced financial professionals are proven problem solvers and have likely dealt with situations similar to yours previously. An outsourced CFO differs from a full-time CFO in a few ways, especially in commitment and engagement.

• CFOs drive financial planning through forecasting, budgeting, performance monitoring, and reporting.
• Keep in mind that the service provider could be an individual or a group of CFOs who have gone into business together.
• At the same time, we provide continuous monitoring and oversight, including an annual debrief of our engagements, so we know your financial strategy is on course and remains adaptable to changing circumstances.
• From there, you should identify suitable candidates or firms, conduct interviews or consultations, and negotiate the terms of engagement.
• Where outsourced CFOs can help with your fundraising is by preparing documents, slides, and financial models you can take into investor meetings.

From there, you should identify suitable candidates or firms, conduct interviews or consultations, and negotiate the terms of engagement. Once you’ve selected the right candidate, you will work closely with them and collaborate in defining the goals and expectations of the contract. Outsourced CFOs can complement your financial team by providing leadership, specialized expertise, and additional bandwidth. An outsourced CFO will collaborate with your in-house accounting and finance teams to enhance existing capabilities and guide them toward specific goals. Our team of accountants assists in executing the new, planned initiatives, streamlining existing processes, and implementing any necessary tools or systems.

– Capital Structure

Extending your budget to allocate hours of CFO services — the average requirement for early-stage startups — can cost $5,000 to $8,000 per month. Additionally, if your outsourced cfo isn’t a permanent part of your business, they may not have the necessary knowledge to provide in-depth analysis or actionable advice. To benefit from a CFO’s experience, you’ll need a dedicated professional who understands your startup’s challenges. However, it’s important to understand the limitations of outsourcing. Startups tend to allocate their finance and accounting budgets based on hourly rates, estimating about 3-4 hours per month for financial projections, planning, and reporting.

“[We] kind of became known as the entrepreneur’s CFO, and then we started building the company,” recounts Arndt, who sold his business to CPA firm Ostrow Reisin Berk & Abrams (ORBA) in 2016. Conversely, a company that’s an acquisition target wants a CFO who has navigated the M&A process and worked extensively with auditors. A more mature and stable company might need someone with strong GAAP and technical accounting experience. In other words, CFOs aren’t one-size-fits-all, so finding one that can fill your specific needs is critical. It’s not hard to find an outsourced CFO – plenty of financial executives have a strong CV and a long list of industry contacts. However, finding the right person to fit your company’s unique situation and needs takes more work.

Why Choose an Outsourced CFO Over an In-House Hire?

It depends on what types of services you need, how many hours per month are needed, and the term (length in months) of the arrangements. Let us put together a proposal for your specific needs by filling out our contact form. Our external CFOs can guide you through challenges, help fine-tune your strategies, and prepare your company for growth or transactions.

When you hire ORBA Cloud CFO’s fractional CFO services the monthly fees start at $4,000 per month. That means you could see up to a 90% savings depending on how complex your financial requirements are. For example, while many people refer to a CFO’s “First 90 Days,” our clients can move through the contract phase to be fully onboarded within two months.

What are Outsourced CFO Services?

We seek to move the needle in your company by providing strategic services that will accelerate growth, increase profitability, optimize operations, or facilitate more successful transaction. If you’re unsure whether we provide service that fit your needs, contact us. Our finance experts are available via phone or email to discuss your business goals or challenges. Finances are imperative to the daily operations of an organization, and financial reports keep you apprised of your current (and future) standings. Many outsourced CFO services include financial report facilitation, interpretation, and drill-down.

As a member of your team, they can work with your in-house staff to ensure that issues are addressed proactively and swiftly as they arise. Outsourced CFO services are designed to align your strategy with the operations of your business. In this article, we’ll address what an outsourced CFO is, the service they offer, and the unique benefits you can enjoy from working with one. In today’s dynamic business landscape, having a strategic financial perspective is more crucial than ever. However, not all businesses can afford to have a full-time Chief Financial Officer (CFO) on their roster. Profitability is not just a financial metric; it’s a mindset that should permeate your business operations.