As soon as an organisation reaches a key point in their lifespan, they will need to hire one of the best accountants in North Sydney or outsource the services of a reliable chief financial officer (CFO).
This is a position that is critical for a brand’s success and future direction, overseeing their financial management, planning, reporting and risk assessment all under one banner.
The natural inclination for many enterprises is to hire within the organisation or to offer a long-term position for an appropriate candidate.
However, brands to are able to maximise their potential when they look to outsource the CFO position, ensuring they have an available candidate that is introduced on their own terms.
Before dismissing the notion, it is worthwhile taking a closer look at the key benefits offered when outsourcing the position for a business.
Immediate Access To Financial Expertise
Jumping through hoops to introduce a candidate who needs to be trained and get their feet under the table is time that many businesses cannot afford to invest. Although there is the potential that this professional will be the right individual for the right role, there are no guarantees as the organisation misses out on key financial processing and planning skills. By taking the option to outsource the CFO position, enterprises are able to have an experienced and trained expert on hand and ready to work on day 1 of the project.
Objective Brand Analysis
Although it is an issue that is rarely voiced in open dialogue, the inclusion of office politics, conflicts of interest and stressed relationships can muddy the waters with financial responsibilities. That is where the move to outsource the CFO position will provide objective analysis on the financial health of the company, allowing all parties to track progress and determine where the trajectory is heading for the short, medium and long-term. There won’t be any presumptions or predispositions, just experts bringing a fresh pair of eyes and ears to the table.
Controlling The Bottom Line
While most internal CFO appointments will set back a company $200,000 annually on average, the choice to outsource the CFO position will help the brand to control their bottom line. They will be able to locate an outsourced financial operator who can work on fixed projects, setting an agreement for 3, 6, 9, 12 months or beyond. This lowers the level of investment necessary and ensures that the quality and planning parameters are not compromised in the process.
Minimising Company Risk
One of the core key performance indicators (KPIs) that an outside CFO will need to hit is to minimise the financial risk that a brand potentially faces down the line. Opting to outsource the CFO position will give the enterprise a chance to acquire an individual or team of operators who will find a sustainable balance between equity and debt, giving the client a chance to be genuinely profitable moving forward.
Investing in Other Departments
Such is the weight that is placed on the CFO role, it is easy for owners and managers to occupy so much of their time, energy and resources into covering these subjects from day to day. The option to outsource the CFO position suddenly opens up more opportunities and investment into the other realms of the business, from the marketing and HR divisions to acquiring new investment and correcting oversight that would previously have been left to one side.
Very few organisations at any level in the public or private sector do reach their potential. When trying to balance all of the internal responsibilities, there is seemingly no end to the external events that puts roadblocks in the way of an enterprise. The decision to outsource the CFO position helps these brands to break the shackles that many companies struggle to live with, providing an immediate intellectual property upgrade and ability to look beyond the short-term.