But there are instances when hiring top-notch accountants, bookkeepers and other finance professionals are not enough. Sometimes, you need the expertise of a seasoned finance professional such as a chief finance officer (CFO) to provide sound and actionable counsel to companies with financial challenges and problems.
What is a CFO?
Being the highest officer responsible for financial matters, the CFOs of huge corporations perform a wide range of tasks falling under three major categories:
- Controllership – this member of the C-suite oversees the financial activities of the company. She prepares the final report of all the monetary actions of the entire corporation. She also collates and audits reports coming from the accountants and bookkeepers below her.
- Treasury – She has the final say on the enterprise’s monetary status. Hence, she must take charge of the investments the company makes, with special consideration to risk and liquidity. She is expected to have superior investment judgment.
- Forecasting – She is also expected to be well-versed in giving the C-suite and board of directors a sound foresight on the financial future of the company using forecasting. She should also use her statistics and modeling skills in choosing the right model that will yield the most gains and least cost for the company.
Aside from these, CFOs are also expected to help explain investors and other company stakeholders about the
Outsourced CFO Consulting Services
With their working knowledge of all aspects of finance and taxation as well as some knowledge of economics, CFOs is perhaps the most reliable source of information and advice on different monetary aspects of a business. While in the past, these capable professionals are locked inside the four walls of corporations, fortunately for many companies, there are now accounting firms in Dubai that provide consultation services from notable and qualified CFOs.
Hiring these experts on an outsourced basis is now gaining traction. In the US and other countries, more and more accounting firms offer outsourced CFO consulting because of rising demand. Many companies prefer the services of CFOs over CPAs (certified public accountants). These entities believe the latter lacks the skills in financial planning, analysis, and strategy.
Now that you know the competency and edge of CFOs, the next thing you should do is to know when to hire them. Here are some of the primary reasons you need their services:
- Give Sound Strategic Advice
There are instances, such as meeting with an investor, when you need a clear direction in the financial aspects of your business. While your seniors in your finance department can provide decent answers, you need an authority like a CFO to build trust.
- Raise Funds and Capital
Raising capital is a tricky task even for senior accountants. You need the help of an expert with years of experience in this activity. An outsourced CFO fits the bill. She has both the working knowledge on the common procedures such as due diligence. They will give insight into the right way of obtaining financing by debt, equity or a combination of both.
- Fix Monetary Constraints
Your in-house controller and accounting department sometimes encounter problems in budgeting and taxation. They need reliable advice from a senior in the field of finance to help them resolve the issues. To do this quickly without wasting too much time and money, you need help from valid experts.
- Scale Financial Systems to Adjust to Growth and Complexity
Some companies encounter huge problems when their business grows. Most professionals in their finance department are not experienced in handling more complex tasks and operations. Before expanding your department, you may want to seek advice from a veteran in the industry. This way, your accountants and other finance professionals will be properly guided during the adjustment phase.
- Provide a Clear Financial Roadmap
While forecasting is part of the accounting curriculum, most entry-level to intermediate accountants are not well versed in foreseeing the future of the company using time-series analysis and other statistical tools. To get an accurate and scientific estimation of the future of your firm’s finances, you need a CFO who can help chart the course of your financial roadmap.
When it comes to financial advice, never depend your decisions on the counsel of unqualified people. Hiring CFO services is the best bet toward a better company. Find a reputable outsourcing financial services company now to help your company reach its full potential.