5 Ways a CFO for Hire Can Benefit Your Business
Updated: Oct 19
CFO's for hire is a relatively recent phenomenon that has reached mainstream financial talking points. In reality, the concept has been in practice for many years and many companies are reaping the benefits of such a flexible alternative to a traditional in-house CFO role.
Are you considering adding sound financial expertise to your company? Do you have plans to grow or scale your business in the next 1-5 years? If so, hiring a CFO can be one of the most profitable investments you can make as a business owner. Here are five ways a CFO for Hire can benefit your business:
1. Compensation Flexibility
C-suite positions such as a CFO are expensive but necessary. Outsourcing your CFO position to a qualified fractional CFO service provider, such as L.A. Financial Management, gives you the full knowledge and expertise of a CFO without the cost ramifications of a full time CFO.
2. Increased Financial Controls and Growth
A talented CFO will exercise control over the financial health of your company by formulating and implementing financial strategies, managing your company’s financial departments and ensuring that the company is in compliance with industry and legal standards. By continually analyzing the company's financial position and strategizing accordingly, a CFO can exponentially increase your company's growth.
3. Formulating and Implementing Financial Strategy What gets measured, gets managed. As CFO takes your company's current financial position, market trends, sales projections and history and creates a strategy plan to improve profitability and sound growth over time. This helps you achieve your goals faster, and with positive cash flow.
4. Improved Cash Flow A CFO improves your cash flow by managing the cash conversion cycle. A CFO can improve collections, pricing, and terms resulting in increased liquidity. Cash Flow projections prepared by your CFO can help guide the financial management company wide.
5. Increased Perception of Financial Stability with Banks By showing you have financial expertise within your company and a dedicated open line of communication with that company's financial expert, banks will have an increased perception of financial stability and enable your company to better access funds needed for growth.
Considering hiring a CFO? Contact L.A. Financial Management for more information on how we can benefit your company.