What To Know About CFO Consulting
Many medium and large companies have full-time Chief Financial Officers who perform a range of vital services. CFOs are essentially the financial advisor for a company, the top resource when it comes to financial decision-making. CFOs often devise complex plans to raise capital, manage the corporate finances, eliminate costs, and improve overall fiscal health.
Here are just a few of the vital functions a CFO may perform:
- Short-term financial planning
- Long-term financial planning
- Debt reduction, restructuring or elimination
- Raising capital
- Financial system improvement
- Assist with the creation and analysis of financial statements
- Facilitating business growth
- Preparing business audits
- Assisting with complex issues, such as mergers & acquisitions
A trusted CFO can be an extremely valuable asset for a company. But it doesn’t always make sense to hire someone full-time. Many new companies lack the capacity to hire an in-house CFO as an employee and would benefit from hiring a CFO consultant instead.
CFO consulting refers to the practice of hiring an independent contractor to perform the functions of a CFO. For many businesses, taking this route can have very positive outcomes for a company.
Benefits of CFO Consulting
Hiring a CFO consultant may be highly beneficial for your company. On top of the obvious benefit of handling major financial tasks and freeing up your time, CFO consultants will cost less than traditional CFO employees. With a consultant, you won’t have to provide benefits, such as health insurance, paid sick days, paid holidays, or other perks; nor will you have to pay payroll tax, or bother with income tax withholding, or worry about the other costs associated with full-time employees.
CFO consultants may be able to provide superior services compared to an in-house CFO. Experienced CFO consultants have been exposed to a more diverse range of business issues, as they have provided services for multiple companies. By contrast, some full-time CFOs have more limited experience in executive roles, and therefore may be less qualified to provide counsel on certain complex matters.
Not to mention, there is an inherent benefit to having a third-party manage your company’s financial structure. Without the bias of an internal employee, a consultant can take an objective look at your business and determine the actions that need to be taken to improve your fiscal health.
Hiring a CFO consultant can provide a variety of benefits to a business, including:
- Reduced costs
- More time to devote to other tasks
- Superior experience
- A more objective approach to financial matters
An Expert Team of Consultants — In Your Corner
CFO consultants can help you transform the finances of your company. A talented CFO consultant can help you manage your finances better, raise capital from various sources, and achieve higher-level corporate goals. If you hire an outsourced CFO consultant, you should be sure to hire someone who has sufficient experience, skill, and financial knowledge.
Boxelder Consulting is proud to offer outsourced CFO consulting for businesses in need of this service. Businesses can take advantage of the accumulated knowledge and experience of our talented team. Reach out today for free consultation!