When your organisation brings in a new chief financial officer, is hiring a remote CFO or an in-house CFO better? When many companies think of CFOs, they default to the expectation of a long-term hire requiring an office, a six-figure salary, bonuses, and benefits. However, a remote option brings high-strategy expertise to a company without the same commitment and expenses.
A Remote CFO is a fractional/part-time CFO who works remotely. This option provides companies with the same high-level strategy and experience as a top-level, in-house CFO, but without the associated costs. This article deals with the benefits of hiring remote CFO services for your company.
Who is a CFO?
A CFO is an essential element of the organisation for businesses. Its responsibilities are not limited to managing the firm’s financial resources. They decide on the businesses’ capital structure and when and where to invest. The Chief Financial Officer (CFO) oversees an establishment’s accounting. They are responsible for analysing financial data, managing costs, reporting financial performance, etc.
A remote CFO outsources work that gives economic assistance to a firm. It is more cost-effective. It is also more efficient than hiring an in-house CFO. As a result, by using remote CFO Services, you can access highly qualified financial specialists who can increase your cash flow and profitability. It can be done without spending a fortune.
It would help if you employed a CFO based on your specific needs. But, all CFOs will assist your company’s financial management systems and processes.
Top 10 Benefits of Hiring Remote CFO Services for Your Company
Many benefits of hiring a Remote CFO vs. an in-house CFO are related to cost. However, many companies are surprised that Remote CFOs are distinctively positioned to have more mixed and focused experience than their in-house counterparts.
1. Less Expensive
A remote CFO is not more costly than the salary of an in-house CFO with similar skills. A remote CFO doesn’t require benefits or bonuses. Remote CFO pricing will be based on the time/deliverables your organisation needs. It will happen where an in-house CFO will be a full-time salaried employee.
2. Multiple Industry Experience
Remote CFOs have the unique experience of working with multiple industries at any given time. While the CFO organisation you work with will pair you with a CFO with proper skill in your specific industry, your CFO will also have experience in other sectors. This gives an opportunity for multilayered insights and networks you might not have otherwise had.
3. Benefiting from a TEAM of CFOs
If you hire a remote CFO who is part of an outsourced CFO team or organisation, you’re getting the expertise of not only that CFO but also the CFOs they work with. While you’ll have a single touchpoint at the CFO organisation, you’ll benefit from the expertise of all the CFOs in the organisation.
4. Standardised Reporting
Most CFOs, bookkeepers, and controllers use some of their preferences or styles in how they format documents, files, or reports. A remote CFO is more likely to have adopted the most generally accepted best operations for generating client reports.
5. They’ll Fit Right Into your Staying Team
Remote CFOs have worked with dozens of various personalities. This is often simultaneously. They know how to bring economic expertise to an existing team. It shall be without ruffling feathers. Expect a CFO who knows how to bring change without creating contention in the organisation.
6. Big Network
CFOs have been in the company long enough to have a robust network of key organisations from which to leverage. It involves financiers, lenders, and other experts. A CFO who is part of a remote CFO team has not only their contacts but also access to the network of the rest of the CFOs on their team. If you are increasing funds or growing into new geographies or products/services. Your CFO will know some people who can help you get off to an even better start.
7. Credibility in the Industry
CFO have proven themselves time and time again. They gain clout and credibility in the business. They’ll likely have resolved more challenges and raised more funds for more organisations than an in-house CFO who has worked at the same organisation for many years. It will happen when you consider an outsourced CFO.
8. They Can Handle Any Issue You Throw at Them
Remote CFOs will manage any issue you could throw at them. They’ve worked with organisations of all sizes, industries, growth stages, and disarray/emergency. If this is the first time they have faced a certain issue, then you know one of the CFOs in the organisation has and can bring a tried and proper solution to the table.
9. Hand-Offs or Changes Go Smoothly
It’s unlikely your CFO will change during their tenure. It will happen when you hire an outsourced CFO organisation. However, consider whether a change occurs at your demand/request or because of an update at the outsourced CFO organisation. Then, you can identify that the transition will be quick and painless. An outsourced CFO organisation already has various CFOs in the wings who are probably apprised of the information of your organisation and can undoubtedly transition into the CFO position.
10. There’s a Slight Learning Curve
You’re probably aware of the ordinary expectation that new employees typically take 6-12 months to get up to speed and carry out their maximum capacity. With a remote CFO, they have so much experience entering organisations mid-process that they always hit the floor running. Remote CFOs can quickly assess the current situation and begin implementing actions to resolve challenges and achieve goals.
Winding Up Note
The importance of remote CFOs will only increase in the business landscape. Their ability to combine financial acumen with strategic thinking makes them leaders. They are the ones who navigate complexity, drive growth, etc. It helps organisations sustain success. They save your business money.
The exemplary remote CFO service can transform your financial strategy. It also propels your business forward. This helps you achieve your goals. Startup Fino is here to support you. You can explore remote CFO services today and set your business on the path to financial excellence. Ready to harness the power of strategic CFO expertise for your organisation’s success?
Let’s see how a remote CFO can help you overcome your business challenges. You can also check how remote CFO services partner to help you achieve your organisation’s potential. Contact Startup Fino today to speak with one of our experienced outsourced CFOs.
FAQs
How much does a freelance CFO charge per hour?
Freelance CFOs usually charge between $200 to $500 per hour. It depends on location, education, company size, and experience. This rate usually does not include benefits.
Tell me the elements of Remote CFO services.
Remote CFO services typically include financial planning and analysis. It also involves strategic guidance, financial reporting, etc. They’re designed to provide comprehensive financial oversight.
How does a remote CFO manage financial risks?
A remote CFO manages financial risks by identifying potential risks. It also develops strategies to mitigate them. After all, it monitors economic exposures through internal controls and observation. This helps to ensure the company’s financial stability.
Why do I opt for a remote CFO service?
Opting for Remote CFO services provides access to expert financial management. This is happening without the cost of a full-time executive. It helps improve financial strategies, compliance, reporting accuracy, etc.
How can I choose a Remote CFO service provider?
Choose a provider with proven expertise in your industry, customisable service offerings, etc. That may match your needs. After all, a strong track record of helping businesses achieve their financial goals.
Are there customisable options available for remote CFO services?
Yes, many Remote CFO service providers offer customisable a-la-carte options. It allows you to select services that align with your business’s unique requirements.
Does financial planning entail remote CFO services?
Financial Planning and Analysis involves budgeting, analysing financial data, etc. It helps to support better business decisions. It also helps in strategy formulation.
Do remote CFOs provide financial guidance?
Yes, Remote CFOs specialise in offering strategic financial guidance. It is tailored to your business’s unique needs. It also helps to drive growth and improve profitability.
Types of Technology Use in Outsourced Accounting
Cloud-based accounting software helps in outsourcing accounting. That is the help in document management systems, electronic payment platforms, etc.
How does technology improve data security in outsourced accounting?
Technology plays a vital role in ensuring financial data security. These involve encryption, multi-factor authentication, etc. All measures to protect sensitive information, too
What does a remote CFO do?
A remote CFO provides economic planning expertise. It implements strategies and manages assets to ensure business growth.
What benefit does a Full-Service Remote CFO give to businesses?
Full-service Remote CFO solutions offer a complete suite of financial management services. It enables businesses to streamline operations. It also enhances decision-making.
How much does a remote CFO cost?
Employing a remote CFO can cost anywhere from $2,000 to $10,000 per month. It depends on the provider and aids. It can be an essential but pricey investment for your business.
What involved remote CFO aids?
Remote CFO services involve economic planning and analysis, budgeting, forecasting, and creating detailed financial plans. It also gives projections to anticipate future expenses and revenues.
