5 Ways CFO Consulting Services Can Help Grow Your Business

CFO consulting services aren’t just for large multinational corporations. Small business owners just like you can benefit from the expertise that only comes from having a Chief Financial Officer on your team. 

Think you can’t afford it or don’t have enough work to justify a position like that? Think again. 

In this post, we’ll help you understand what a CFO consultant is and what they do. Most importantly, you’ll discover the value a CFO can bring to your company…even if your business isn’t that big.

cfo consultants

CFO Consulting Services

CFO consulting services exist to provide financial guidance to small-to-medium-sized businesses that may not be in a position to justify hiring a full-time in-house executive-level team member in that role. Their main focus is less on the day-to-day bookkeeping tasks associated with running the business. Instead, their job is to make sure the organization is set up in the best way possible to maximize financial efficiency and profitability. 

As IBM reported in a recent CFO study, a CFO “brings calm, perspective, and a comprehensive understanding of the big picture by being grounded in specific details and tangible realities. CFOs are equipped with a toolbox of levers that they can use to deliver outcomes.”

  • Maybe your business is a new start-up with limited resources and you want to make sure you set things up well from the beginning.
  • Maybe your business is growing rapidly and you need help managing all the moving pieces.
  • Maybe you are involved in a special project that is demanding more time and resources than your team has available.

Any of these scenarios (and countless others) could benefit from the services of a CFO.

We’ve given you a brief summary so far, but before you start searching online it would be a good idea to know what a CFO consultant is and what they actually do.

What Is A CFO Consultant?

A CFO consultant is a financial professional who specializes in ensuring sound financial management in a business. It isn’t enough just to make sure you are accurately recording all of your revenue and expenses. You need to have a strategy for how your money is spent and invested so that your company will continue to grow and thrive.

CFO consultants are generally people who have been in business for a long time. They are able to serve as a mentor to younger business leaders who may not have the experience to understand all of the risks and benefits of their financial decisions. 

Having someone who can guide you through the ups and downs of running a company definitely makes the journey smoother. Instead of wondering what’s around the next corner and blindly guessing at what you should do next, working with a CFO consultant allows you to better understand what’s ahead and make wiser decisions.

As we mentioned in the introduction to this post, a CFO doesn’t have to be a full-time employee to be an asset to your business. In fact, unless you run a company that is making more than $10 million in revenue each year, you probably can’t justify paying someone $80-120K in salary (plus benefits). The good news, however, is that great CFO consultants are available on an “as-needed” basis.

We wrote about the benefits of hiring a fractional (or part-time) CFO in another post a couple of years ago (“Is Your Business Ready For A Part-Time CFO?”), but they’re worth repeating here:

  1. They’re available when you need them. You might only need help on a monthly or quarterly basis for a few hours at a time.
  2. They are cost-effective. You’re only paying for them when they’re actually working.
  3. They provide an outside perspective. Since most fractional CFOs serve multiple companies across a wide range of industries, they are in a position to help all of their clients better understand trends in the overall business world.
  4. They bring industry knowledge. Because they most likely also work with other companies in your industry, they are perfectly positioned to help you stay on top of the best practices within your particular field.
  5. They give you access to an entire finance team. Many fractional CFOs work as part of larger accounting firms where they have access to experts in accounting, payroll, taxes, and other areas of finance that your business will eventually need help with. Having an existing relationship with someone like that means you won’t have to spend time searching for other finance professionals later.

What Do CFO Consultants Do?

Ok, so we know that having a CFO is a big plus for your business, but what do CFO consultants actually do? Here are a few of the areas where they can really make a difference.

  • Cash Flow Management – Know when, where, and how your cash needs will occur and what the best sources are for meeting those needs.
  • Bank Financing – Requesting a loan without adequate preparation sends a huge negative signal to lenders. Having a CFO put together a solid proposal for loans you need to grow your business helps you put your best foot forward.
  • Strategic Business Planning – Clarify your company’s direction and ensure that your entire team is on the same page whether you are starting a new venture, expanding into new markets, or turning a declining company around.
  • Internal Controls – Eliminate inefficiency and make sure your resources are being handled well by putting good internal control policies in place.
  • Succession Planning – 7 out of 10 family businesses fail to make the transition from one generation to the next successfully. If your plan is to pass the company you’ve built to your children or grandchildren, a CFO can help you make sure you do it in the best way possible.
what is a cfo consultant

CFO Advisory Services For Small Businesses

Our team of accounting experts has been providing advisory services to business owners just like yourself for over 40 years. We have experience working with all kinds of industries providing outsourced CFO services that help our clients grow their businesses. You can find details on our website about our CFO Consulting Services or simply schedule a call with one of our team members to learn more.

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