Not long ago, if a company needed someone to provide a specific kind of service for its team regularly, it hired someone to do the job. Nowadays, seeking support for operational needs is a much more flexible undertaking. Outsourcing various kinds of work allows companies to tailor their approaches efficiently and effectively. This arrangement also avoids the long-term legal and financial implications associated with extending a formal offer of employment to every individual who serves in a supportive role.
In this article, the experienced financial team at Ferguson Timar will discuss some of the benefits associated with investing in outsourced CFO services. Smaller and medium-sized corporations in particular are well-positioned to take full advantage of all the flexibility, objectivity, and efficiency that this approach to securing CFO services affords.
The Role of a CFO
A corporation’s CFO (chief financial officer) is primarily tasked with overseeing the company’s financial situation and managing employees and support staff who handle financial and accounting challenges as a function of their job duties. As the primary party responsible for analyzing the financial needs, strengths, and weaknesses of the business, the influence that a CFO wields is not to be underestimated.
As a result of a CFO’s critical role in serving a company’s present and future well-being, many boards of directors are understandably hesitant to entrust this responsibility to an outsourced professional. Yet, there are so many benefits to be gained from this arrangement that it is worthy of serious consideration under certain circumstances.
Flexibility and Cost-Effectiveness
Large corporations usually hire a CFO in a full-time capacity because their financial situation is so complex that it requires full-time attention. However, smaller and medium-sized corporations don’t necessarily need someone to serve in a CFO role 40+ hours per week. Outsourcing CFO services allow corporations to pay for the time that it takes to benefit from the professional analysis, management, and oversight they need on an ongoing basis to succeed without bulking up their payroll costs unnecessarily.
Additionally, outsourced CFO services can be beneficial when a gap in a corporation’s CFO employment situation creates a need for support temporarily. For example, if a CFO takes a leave of absence, medical leave, or sabbatical, etc., outsourcing CFO services for a time can help to ensure that the needs of this role are attended to seamlessly during that gap in an established professional’s tenure in this role.
Objectivity and Perspective
When someone is hired as a full-time CFO in a company employee capacity, they may serve in this role for years and years. This arrangement allows for a unique insight into company culture, politics, and trends. However, it can also lead to the development of subconscious biases rooted in the CFO’s perceptions of the company’s evolution, stake in the outcome of internal political matters, and preferences concerning how things should be done.
An outsourced CFO can bring objectivity to your company’s financial situation and an outsider perspective uncolored by historic internal struggles and loyalties. If you’re looking for a “fresh set of eyes” with which to analyze your company’s current financial needs, outsourcing CFO services can provide you with that objectivity and perspective.
An outsourced CFO can also help you develop forward-looking financial strategies that are untethered to any sense of ego or ownership that can arise when someone has been employed in a job long enough that their vision can start to become more about them and their priorities, as opposed to the broader needs of the company.
The Opportunity to Refocus
Oftentimes, shake-ups in the upper management of a corporation drain company morale and lead to a great deal of anxiety. If your company’s CFO has either quit or been terminated without much warning, you may not have had time to conduct a thorough employment search for a replacement candidate whose credentials and approach to the job suits your company’s needs. Outsourcing CFO services temporarily can allow your company the time it needs to find your next “perfect fit” CFO and to address internal response to the shift without losing a beat in re: successful management of the company’s finances.
Explore Reputable Outsourced CFO Service Opportunities
Connect with the experienced financial team at Ferguson Timar today to learn about our flexible, cost-effective, professional outsourced CFO services. We employ a client-focused approach tailored to the unique needs of each company we serve. Whether your corporation needs temporary or ongoing services, we’re here to provide you with the detail-oriented support your company deserves.