What do Outsourced CFOs Do? 11 Common Duties & Tasks

NOW CFO is a “roll-up our sleeves” full service consulting firm with a singular focus on outsourced CFO, Controller, accounting, and finance needs. 2024 is a year rife with unique challenges and opportunities in financial reporting. As stewards, CFOs protect the assets of the company, verify compliance with GAAP and other regulatory bodies, and close the books accurately. They are preoccupied with assessing and mitigating risks to the company. While many controller roles vary based on the company for which they work, there are general similarities of controllers across industries and company types.

During such a time, delegating your responsibilities to a fractional CFO will ensure that the company can keep up the pace. This will ultimately help in avoiding severe financial problems later on. An outsourced CFO is a finance leader outside of your company who guides in areas of finance, accounting, and operations management. Outsourced CFOs are not the same as interim CFOs, who are essentially hired temporarily. Conversely, outsourced CFOs can be used full-time, part-time, or as interim for the length of a particular project.

What Does It Look Like to Work with an Outsourced CFO?

Most smaller companies lack the financial resources to hire a full-time professional CFO. As a result, they do not have the expertise to optimize financial performance, manage cash flow, provide accurate tax reporting, oversee recordkeeping, and maintain regulatory compliance. While a company may be able to hire a full-time bookkeeper, they most often find that the level of expertise is insufficient to meet their needs. https://www.bookstime.com/ As a business owner, identifying ways to improve your organization without wasting resources is crucial. If you are in need of holistic financial support from a professional perspective, our outsourced CFO services can be precisely tailored for the needs of your business. Businesses may look outside the organization to engage external financial partners, such as investment advisors, tax preparers, and auditors.

• All this can quickly add up to be very expensive, especially for small businesses or those working under a tight budget.
• An outsourced CFO provides services to help you determine what capital structure is ideal for your organization.
• An outsourced finance function can provide strategic advice on how best to manage finances while providing professional expertise at an affordable rate.
• This person oversees all financial activities, meticulously documenting them, and generating analysis to proactively manage debt and increase profits.
• As we enter 2024, it is increasingly critical for businesses to monitor certain Financial KPIs (Key Performance Indicators) to ensure they are on the right track towards fiscal health and prosperity.

If you’re a business owner, you may already have some exposure to companies that provide services through an outsourced model—perhaps you’ve sought out contractual or fractional work to save on hiring costs. You may also have a good idea of the role that outsourced cfo a CFO or other high-ranking financial executive plays in a company. If your company is in transition, facing a challenge, or is in the process of hiring a full-time in-house CFO, and interim CFO can help support your organization in the meantime.