How Outsourced Controller and CFO Services Can Transform Your Business

Managing the financial aspects of a business can be daunting, especially for small and medium-sized companies. Controllers and CFOs are crucial in ensuring a company’s financial success, but hiring full-time employees for these positions may not always be feasible or cost effective. 

Outsourcing financial leadership roles has become increasingly popular, offering benefits such as cost savings, increased efficiency, and access to top-notch professionals without the burden of full-time employment costs. 

In this article, we will explore the concept of outsourced controller CFO service offerings in detail—from the roles and services provided to the potential cost savings and efficiency improvements for your business. 

The Role of an Outsourced CFO

A chief financial officer (CFO) is responsible for managing the financial strategy of a company. They oversee budgeting, forecasting, financial reporting, and analysis to help drive business growth and profitability. 

An outsourced CFO takes on this role remotely, providing financial leadership to businesses without being physically present in the office. 

Some key responsibilities of an outsourced CFO include:

Cash flow management

One of the main responsibilities of a CFO is to manage cash flow effectively. This involves monitoring and analyzing the company’s financial statements, identifying potential risks, and implementing strategies to improve cash flow.

Financial analysis

An outsourced CFO also handles financial analysis to provide insights into the company’s financial performance. This helps you make informed decisions about investments, cost-cutting measures, and other strategic initiatives.

Risk and opportunity assessments

Outsourced CFOs conduct risk and opportunity assessments to identify potential areas of improvement or concern within a company’s financial operations. This can help you proactively address any issues and capitalize on growth opportunities.

Strategic financial planning

An outsourced CFO works closely with your company’s management team to develop and implement a financial strategy that aligns with your business goals and objectives. They also guide budgeting, forecasting, and cash flow management to ensure the business stays on track financially.

The Role of an Outsourced Controller

A financial controller oversees a company’s financial operations, including budgeting, analyzing financial data, and ensuring compliance with regulations. In an outsourced scenario, the controller works remotely but remains fully dedicated to your business. 

They work closely with your team to understand your business’s financial needs and provide valuable financial insights or recommendations to support decision-making processes. 

Some key responsibilities of an outsourced controller include:

Financial reporting

A controller is responsible for preparing timely and accurate financial reports that provide insights into the company’s financial health. These include balance sheets, income statements, and cash flow statements to help you make informed decisions.

Budgeting and forecasting

An outsourced controller can assist with creating and managing budgets, as well as forecasting future financial performance. This helps you plan for the future and make strategic decisions to achieve your financial goals.

Cash flow management

Managing cash flow is vital for the financial stability of your business. An outsourced controller can help monitor and manage cash flow, ensuring enough liquidity to support daily operations and investments.

Compliance

Compliance with financial regulations is crucial for any business, and an outsourced controller can ensure that your company meets all requirements. They stay up to date with changing regulations and implement them in your business processes.

Process improvement

An outsourced controller is able to analyze your company’s financial processes and identify areas for improvement. They can implement new financial systems or streamline existing ones to increase efficiency and reduce costs.

What Are the Benefits of Outsourcing CFO and Controller Services?

Why would you outsource controller and CFO services? Here are some of the major benefits:

Cost effectiveness

Hiring a full-time controller or CFO can be expensive, especially for small to medium-sized businesses. The average salary of a controller in the US is $130,000.

Outsourcing these roles allows you to access top-level financial professionals based in regions with lower rates and without the added costs of employee benefits, taxes, and other overhead expenses.

Access to specialized expertise

Outsourcing financial leadership roles enables your business to tap into the specialized expertise of professionals with extensive experience in your field. 

These individuals bring advanced knowledge and skills, allowing for better financial management and decision-making.

Scalability and flexibility

As your business grows, its financial needs may change. Outsourced controller and CFO services provide scalability and flexibility to meet these demands. 

You can easily scale the level of service up or down without worrying about hiring or training new employees.

Rapid deployment of services

Outsourced financial leadership services can be quickly deployed, immediately providing your business with a skilled professional to manage its finances. 

This is especially beneficial for organizations that need immediate support or are going through a transition period.

Improved financial compliance

Controllers and CFOs are responsible for ensuring compliance with financial regulations and laws like the Sarbanes-Oxley Act (SOX) and the Generally Accepted Accounting Principles (GAAP). 

By outsourcing these roles, you can have peace of mind knowing that your finances are being managed by specialized professionals who stay up to date with the latest laws and regulations.

When To Consider Outsourced CFO and Controller Services

Outsourced CFO and controller services can be a game-changer for businesses that require advanced financial expertise without the cost of a full-time executive. Signs your business might need these services include:

• Rapid growth
• Increasingly complex financial operations
• A need for cost efficiency
• Lack of strategic planning

To find excellent CFO services, consider specialized recruiting firms like Near, industry referrals, and professional networks that connect businesses with qualified financial leaders.

But remember that transitioning from in-house to outsourced services can be difficult for employees and high-level stakeholders. 

Clear communication is key to easing this transition, so start by outlining the reasons for the change and the expected benefits. Engage current employees and stakeholders early in the process, providing them with a detailed transition plan and timelines. 

Questions To Ask Potential Providers

You should always ask your provider as many questions as possible to assess whether they would be a good fit before you hire them. Here are some good baseline questions to get you started:

• What is your experience in providing outsourced controller and CFO services?
• How will you ensure confidentiality and data security for our financial information?
• Can you provide references or case studies from previous clients who have used your outsourced financial leadership services?
• What sort of reporting and communication can we expect from the outsourced controllers and CFOs?
• Can we customize the level of service based on our business needs?
• How will you work with our existing financial team?
• Do you have experience in our industry or a similar field?
• How often will you review and analyze our financial data to provide data-driven insights and recommendations for improvement?

Top 3 Companies for Outsourcing Controller and CFO Services

There is a wide range of great options for recruiting and outsourcing services for CFO-specific needs. In no particular order, here are our top three:

1. Near

At Near, we specialize in recruiting top professionals based in Latin America and providing comprehensive support throughout the hiring process. 

We understand the unique challenges faced by businesses when it comes to finding qualified and experienced financial leaders. Our team of experts will work closely with you to identify your specific needs and provide tailored solutions that fit your budget.

We’ve even worked closely with CFO firms, like Kordis, who we helped save $109,000 in annual overhead and reduced their recruiting time by 30 days. 

2. TGG Accounting

TGG is a San Antonio, Texas-based accounting firm that provides management accounting and business advisory services nationwide. It was named a Clutch Top Accounting Firm in 2022 and was added to the Inc. 5000 fastest-growing company list five times.

Its outsourced CFO services include business development, exit planning, risk mitigation, audit support, board presentations, raising capital, leading B2B transactions, and overseeing due diligence on purchases or sales of businesses.

3. NOW CFO

The full-service consulting firm NOW CFO offers its clients outsourced CFO, controller, accounting, and finance services. It was named one of America’s Fastest Growing Private Companies by Inc. 5000 in 2023.

The company’s CFO services include capital raise, exit strategy, compensation modeling, audit preparation, modeling, forecasting, mergers, acquisitions, governance, and compliance.

Final Thoughts

Outsourcing controller and CFO services can bring numerous benefits to your business, from cost savings and increased efficiency to access to top-notch financial professionals. 

By partnering with a trusted recruiting company like Near to recruit experienced controllers or CFOs, you can have peace of mind knowing that your financial leadership roles are in capable hands. 

Let us help transform your business today by helping you hire an expert outsourced controller or CFO who can take your company’s finances to new heights. Book a free consultation call with us to learn more about how we can support your business’s financial success through our comprehensive recruitment services.