As a company grows, its financial needs become more complex. Critical financial oversight and analysis become necessary to aid in making solid strategic decisions. This is when hiring outsourced CFO services becomes important. But why?
In addition to having numerous intangible benefits (permanent professional advice, reliable information), an external Chief Financial Officer (CFO) will provide a series of easily measurable positive impacts on your business.
Having a professional Houston outsourced chief financial officer to assist us at this stage can make the difference between a successful decision or not. Starting a business from scratch is hard work and requires a high level of attention to detail, so it’s always important to have a professional who can advise you at each stage.
The role of a Chief Financial Officer (CFO) is to provide leadership and direction for the financial activities of an organization. They are responsible for the financial health of a company and offer strategic planning and advice.
A CFO assists a company in achieving its financial objectives by ensuring it has the necessary resources and by monitoring and controlling expenses. Additionally, part of their responsibilities includes minimizing risk and maximizing growth opportunities.
Below, we present the five most important benefits that hiring a CFO will provide:
Financial Resource Savings
Initial actions in your business can reduce the financial burden by up to 40%, having a visibly positive impact on your profit and loss statement.
Likewise, by delegating the negotiation of new financing operations, you will optimize the conditions of both the new operations and the renewals that are being carried out.
Financial and Accounting Oversight
The Chief Financial Officer operates at a supervisory level, distinct from management offices or administrative staff, suggesting the necessary adjustments to ensure accurate and precise accounting. They review the data to ensure an accurate depiction of the company’s true image.
In this way, you lay the groundwork to protect yourself from potential future tax contingencies.
Negotiation and Financial Intermediation
As you know, in the business sphere, negotiations of financial significance are quite common (property purchases, leases, negotiations with suppliers and customers, financial institutions, etc.).
Having an experienced negotiator familiar with common clauses and surprises in all types of agreements is a clear advantage and a source of reduced expenses.
Imagine not having to worry every time you need new financing or when annual renewals come around. You can focus on your core activities while being at ease, knowing that your Chief Financial Officer examines the paperwork and clauses.
Undoubtedly, charging appropriately and maintaining a perfect payment organization represents one of the greatest challenges for companies in certain sectors. Companies facing difficulties often do so due to a combination of poor receivables management and disorganization in payments.
A financial professional can establish procedures and systems to safeguard receivables and optimize your business payments, not only reducing losses but, at times, achieving returns through financial income.
Being the leader of a business organization exposes you, at many times, to making decisions alone. Therefore, it is crucial to surround yourself with qualified collaborators who provide different perspectives in the pursuit of the optimal decision for each situation.
Hence, when making decisions, the role of the Chief Financial Officer becomes decisive, as they emerge as a key support in determining the right strategies for the day-to-day operations of the business.
Qualifications of a Good CFO
It is essential to have considerations when hiring a CFO. Here are some qualifications to look for in a competent professional:
- Solid understanding of accounting and finance.
- Ability to develop financial projections and models.
- Ability to communicate financial information effectively to non-financial individuals.
- Experience working with venture capitalists and other investors.
- Ability to negotiate financing terms with lenders and investors.
- Strong understanding of tax laws and regulations.
- Ability to manage risk.
If your company is in the early stages of development, you may not yet need a director financiero. However, as your company grows and becomes more complex, it is advisable.
Another factor to consider is the amount of capital under management. If your company is managing a significant amount of capital, it may be time to hire a Chief Financial Officer to help manage it properly.
Regardless of the stage your company is in, hiring a CFO can be an excellent way to ensure that your finances are managed appropriately. If you’re unsure whether your company is ready for a CFO, consider speaking with a business consultant or accountant to get their professional opinion.
If you have already decided to enlist their services to guide and optimize your company’s results, congratulations! You have made the most informed decision, and it will soon be reflected in your outcomes.