What is CFO Service? How to know if you need one?

Author : felix advisory | Published On : 26 Mar 2021

Being a proprietor, Running and managing a business consultancy is a daunting task. Owners find themselves tangled in delivering the best service of their business and also managing staff and leading them. Being straightforward, in this course to take care of, hiring a full-time accountant (for managing numbers i.e. financials) is not suitable for small-scale enterprises as they cost too much. To get rid upon, CFO services comes in.

CFO (Chief Financial Officers) are the ones who are experienced, skilled, and highly engraved with accounting tools and financial experience. These are the best choice that one should look for managing financial aspects at comparatively lower costs. This service acts as a consultancy firm. When we choose to hire such, we shouldn’t be concerned about anything related to accounting and finance. Hence, the services include are,

  • Threat and tax management
  • Managing intake and outflow of cash
  • Necessary decisions related to disinvestment and divestment
  • Overall business management (includes debt management)
  • Strategies for business management and consulting

Consultancy firms or individuals?

Their consultancy includes accountants who themselves own a code of conduct. In one word they are professionals like CA, ACCA, or post-graduate people. Now, let’s have look at the various faces of CFO services:- 

a) Interim CFO

b) Part-time CFO

c) Virtual CFO

d) Outsourced CFO

No matter whether any CFO handles small business, it is as difficult as managing a large enterprise. A full-time CFO typically requires a high package. If one is eligible and ready to spend a little more money, then one must go for this. 

Similarly, If one wishes for perfection in work for a small course then preferablyVirtual CFO. Also, Part-time CFO are in high demand. Whereas, Outsourced CFO provides business management services that are project basis or part-time. They help in managing cash flow issues, implementing a well-organized system, and executing new plans that indirectly manage consistent growth. Here, you’ll gain all the specialization you need.

Every business aims at lowering costs i.e. minimizing expenses and maximizing profits. Therefore, why one should go for such services? Such services are generally for businesses that believe to take dynamic response. One who believes in innovations and eager for rapid growth must go for it. These custodians are well skilled to maintain rapid profit-maximizing due to potentially increased complexity. They initially take business from manual to an automotive route.

Advantages of the CFO services: -

  • Business with CFO can start providing you and your board of directors the essential valuable information and reports which can help your enterprise for stepping ahead in the next growth cycle. They can maximize your revenue, monthly or weekly, which are necessary to manage your specific current needs. 
  • They thoroughly study your business which glosses over all the reports, includes up and downs and helps us understand where your business stands and where it'll be leading.
  • You’ll found your usual book-keeping staff engaged in work along with specialized custodians which will enhance your internal management growth.
  • It will generate your budget planning which will be planned to hit your goals and best financial assumptions that will reliably help you to take strategic decisions.
  • This service can also train you and your BOD to hold a clear and concise AGM from declaring annual budgets to a reliable package that will define a true picture of your company. 
  • Also, some services (CFO) do not necessarily include, Maintaining relations with investors which is a good and effective approach for rapid growth.

If you were already with the decision to move your company to the next level by acquiring CFO services but was with the lack of confidence. We hope now you have immense clarity about the main purpose and what exactly the CFO services are.