Outside of the Chief Executive Officer (CEO) role, the Chief Financial Officer (CFO) is arguably the most important within the realms of a business entity.
Having control and management over the finances is paramount to ensuring long-term success and viability, offering a company the chance to tap into resources and grab opportunities they would not have otherwise thought possible.
There will be occasions though when the time is right to outsource the CFO, accessing quality expertise from Bramelle Partners without having to go through an extensive development program internally.
But how do organisations know when that time is right?
When Cash Flow Needs Improving
Businesses can be run well on minimal spend, but a time will come when there has to be a higher source of cash flow coming into the coffers. The decision to outsource the CFO will become abundantly clear when there are no funds to engage in that all important marketing campaign, to travel to that industry conference interstate or to fix an electrical fault inside the building. By running their eye over the books, these practitioners can cut out needless costs, invest in the right type of software and negotiate with new couriers and vendors.
When Specialists Are Distracted From Core Duty
Time management is a major domain that the business community has to stay on top of during their endeavours. To outsource the CFO is to ensure that the brand is running as smooth as it can do, dedicating the right resources and intellectual property to their core duty. Members of the executive team and upper management can easily slip into the role of financial officer or accountant when there are shortcomings with this department, but it is vital that each participant sticks to their qualified area of expertise.
When There Is Anxiety During Tax Time
The decision to outsource the CFO becomes clear when management is continually stressed and anxious during tax time. As the financial year comes to the close and all elements have to be accounted for, it can be difficult for domestic organisations to feel like they are on top of their receipts and deductibles, ensuring they avoid any major fees of fines courtesy of the Australian Tax Office (ATO). Given the inclusion of this expert practitioner, the company will be in safe tax hands thanks to their ongoing regulatory practices and bookkeeping updates.
When Short-Term Financial Targets Are Off Track
For many enterprises that are looking at the reward vs. risk dynamic of the move to outsource the CFO, there is a genuine fear that the need to address short-term targets will be overridden by entering into a long-term contract with a professional service. The good news is that these objectives can be met and the agreement can end there. These outlets provide an array of different agreements that can venture from short-term projects all the way to ongoing long-term partnerships depending on the requirements of the business.
When There is a Lack of Succession and Contingency Planning
During the tough daily grind of business practice, it can be difficult to look past the immediate present. With phone calls and emails banking up with meetings and planning strategies scheduled, who is to say what could take place in the coming months or years when survival is at stake? To outsource the CFO in this setting is to provide a way and means to access succession and contingency planning processes. Who can step into the breach when this outsourced outlet moves on? What maneuvers can be made if a buyout occurs or the use of a courier is no longer viable? Who will be making the right call and what type of data and analysis will be used to inform that decision? These are matters that an experienced operator will be on top of.