Small and medium enterprise owners are often considering ways to grow and expand their businesses. One significant way of ensuring small and medium enterprises grow is by putting sound leadership and management structures to propel the business. While most entrepreneurs understand the intricacies of operating their businesses, they require professional assistance, particularly when managing finances. For example, small businesses can outsource and get an on-call CFO at a fraction of hiring an expensive in-house finance executive. The business benefits from hiring an on-call CFO because of their expertise in financial analysis, strategizing, and making financial forecasts. Having a qualified chief financial officer may be the difference between a business that collapses and one that survives and grows for the reasons provided below.
Improved Cost Efficiency
Small business owners must find ways of increasing profit margins while cutting down on recurrent expenditure. Especially given that the COVID-19 pandemic affected the projected returns for most businesses, owners must implement strategies to reduce how much money they spend. Thus, business owners may hire an on-call CFO at an affordable cost while receiving professional and reliable services rather than hire a full-time in-house CFO to handle financial matters. On-call CFOs cost less than in-house CFOs because in-house CFOs are full-time employees and are entitled to costly employee benefits. For instance, the business spends more on office space, equipment, and other employee benefits like insurance coverage when hiring a full-time in-house CFO. Thus, small businesses benefit from hiring an on-call CFO, particularly in the current economic situation.
Reliable Data Analysis
Technological advancement has forced most business operations to rely on the internet and online platforms. For that reason, businesses are increasingly reliant on big data and analytics. Companies collect and analyze data before making crucial financial decisions to maximize the return on investment. For example, a contracted on-call CFO analyses a firm's financial data against its objectives before recommending feasible business strategies. Thus, a business with an on-call CFO has a reliable financial expert who can advise and solve emerging financial problems.
Targeted Focus On Objectives
Outsourcing financial management and hiring an on-call CFO allows business owners and employees to focus on implementing and realizing business objectives. Usually, small businesses and startups use unqualified and untrained personnel in managing their finances and preparing accounts to cut on wage expenses. However, hiring an on-call CFO allows employees to perform their tasks as set out in the business plans and instead have qualified professionals handle finances. Qualified on-call CFOs perform the work efficiently and accurately, preventing costly errors.Share