Is your business struggling just a bit under the weight of financial reporting, strategy and decisions? The good news is that it’s a sign of growth. The bad news is that, until you get some help, you’re going to feel a bit stretched. And that help may be best found in the form of outsourced CFO services.
Why Outsource: Once companies hit a certain level of revenue, usually in the $1 million range, they begin to feel the pinch of doing the financial reporting in-house. While you may decide to hire a controller or CFO, the costs may cause you to reconsider.
A controller’s salary averages around $90,000 when they work for a small business, according to PayScale.com, while a CFO may require more than double that amount in salary. Meanwhile, you’re trying to decide if you need that level of help on an ongoing basis, or if you simply require some expertise as you develop a financial strategy.
CFO or Controller: Making the decision to hire a CFO or controller may be a bit confusing. Here are some other areas where you might want to think about how a CFO could assist your small business:
Oversight of a Bookkeeper: Maybe you have an in-house bookkeeper, but they are beginning to have some questions about how certain reporting should be handled. You might have several bookkeepers, and they have different thoughts about how to best address certain expenses for tax purposes. A CFO’s oversight can help.
Sophisticated Insights: CFO services help you get beyond the numbers as printed on your financial reports. A CFO sees the trends and insights behind the numbers, providing you with deeper analysis and a strategic approach to how you should address different areas of your bookkeeping.
Stakeholder Reporting: CFO services come in handy when it’s time to present a progress report in a neat and consistent fashion to your stakeholders.
Financial Storytelling: Ready to secure a new investor or report to the board on how your year is shaping up financially? Outsourcing CFO services allows you to skillfully showcase your financial progress for moving your business forward.
Not CFO Level Just Yet? Maybe you read the above list and didn’t recognize a specific need for a CFO. It may be just a bit further in the future for your company, but you see that you still need assistance. Take a look at some of the areas where a controller may be beneficial:
Supervision of Financial Reporting: You may need financial reports issued or you may need someone overseeing the production of the reports that are being completed in-house. Outsourcing controller responsibilities may be helpful, and particularly if your bookkeeper recognizes inconsistencies or mistakes but isn’t sure what the cause is.
Monthly Closing: Your business may have been able to thrive with quarterly reporting in the past, but you recognize that real-time data would be beneficial to your growth. A controller can assist with monthly closing processes and keep bookkeepers on track.
Supporting Your CPA: If you have a CPA handling your taxes, payroll and other services, you may benefit from a controller who can provide accurate financial reporting. A controller will ensure accuracy while preventing fraud and security issues with financial reporting.
And now the great news: you don’t have to choose. When you outsource your CFO services to The Power CFO, you partner with a provider that can provide both controller and CFO services in a fractional model. That means you get the assistance you need without being locked in.
When you need help cleaning up your closing process, developing a financial strategy or preparing for a stakeholder meeting, The Power CFO can help you get over that hurdle. We can also assist with ongoing financial reporting and other controller and CFO services. Contact us today to learn more.
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