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HOW TO TELL IF YOU CAN BENEFIT FROM OUTSOURCED CFO SERVICES

BY Eddy Hood In Outsourced Accounting Services On Aug 16, 2012 With 1 Comment

If you think your business can use the services of a CFO, but you aren’t sure whether or not it is appropriate for you to retain a full time staff member to serve your needs, or if you should be looking into a part time outsourced expert, this article is for you. The fact is, some businesses just don’t need the services of such a high level financial professional, because their day to day experiences just don’t justify it. So what are some of the factors you can look at to decide between full or part time CFO help, or none at all?

• Are you anticipating more than 50% annual revenue growth? – Businesses expecting to enter a period of explosive growth usually do require the services of a CFO, to help keep their overall finances in order during such a chaotic period.

• Is there an important, large financial transaction in your businesses future, like an acquisition or fundraising round? – This is another indicator that you could likely benefit from CFO services. Only someone at that level will possess the expertise to help you navigate through these complex
transactions smoothly and with a minimum of problems.

• Are you experiencing cash flow issues? – Outsourced CFO services often specialize in assisting organizations in identifying and rectifying cash flow problems they are experiencing, so if you face similar issues, consider a CFO.

• Is your profit margin difficult to calculate? – If for some reason you have a more difficult time than is usual in performing some of your financial calculations, for instance if you have multiple, overlapping product lines, you may need a CFO to help navigate you through your analysis correctly.

• Do you need expert level tax or regulatory compliance work performed? – Another special area of expertise for some, a CFO is practically required to make sure you fully comply with the complex regulatory frameworks established in some industries.

A good rule of thumb is that if you fit at least 1 or 2 of the criteria listed above, you should consider hiring outsourced CFO services, because you have a need, but not enough of one to justify a new, expensive, full time employee. If you are experiencing 4-5 of the criteria, you probably do have enough of a need to justify recruiting an actual, on-site CFO for your business.

My name is Eddy Hood. I've coached over 500 businesses on how to become more profitable. I'm the Founder & CEO of Ignite Spot, and I have mad parallel parking skills.

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