The Benefits an External CFO can bring to SMEs
One of the decisions that almost every entrepreneur had to make has been whether to manage the company's financials internally or have external resources deal with it.
While there are pros & cons with each option, hiring an experienced external CFO may be an effective solution to maximize the benefits while minimising potential drawdowns, especially during uncertain times.
While Chief Financial Officer (CFO) roles are almost always present in larger corporations, as of recent, a new market trend has seen SMEs equip themselves with this function. That said, while not every SME actually needs to have an internal CFO, the benefits of having an external — or outsourced — CFO are tangible for even the smallest business.
An external CFO can bring a wealth of experience that can be particularly useful for every entrepreneur, especially during uncertain times like the one we are currently living in. Whether you need to make crucial strategic decisions to accelerate growth or restructure to ensure business continuity, an outsourced CFO can bring the required on-demand resources at a fraction of the cost of a full-time employee.
While a full-time internal CFO may require a lot of time to onboard and considerable resources for compensation, external CFO services can quickly and effectively solve the issues you are facing at a fraction of the cost. In fact, it is estimated that an outsourced CFO can save a company almost 65% of the compensation an internal CFO may require for a comparable position.
Finally, regardless of business size or activity, an external CFO can greatly enhance your ability to make holistic strategic decisions regarding the company's financials for almost every aspect, spanning from cash flow and profitability to budgeting and invoicing or payroll and financing.
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