The Benefits of Outsourcing Your Financial Operations

As a business owner, you’re always keen to find new ways to scale your business. Today, outsourcing is becoming increasingly popular among companies of all sizes. Outsourcing certain business areas allows owners to cut costs, improve business efficiency, and free up their time significantly.

Many modern business owners outsource their HR, marketing, IT, and even administrative tasks. Another way to outsource and benefit your business is by outsourcing your financial operations.

Let’s talk about why you should outsource your finances to a virtual CFO and how they can help you scale up your business.

What Does It Mean to Outsource Your Financial Operations?

By definition, outsourcing means you are looking for external help to run a specific area of your business. In this context, you are tapping into the skills of virtual CFOs to help you optimise your company’s finances.

A virtual CFO serves different functions, such as helping you create budgets, analyse financial statements, define processes and performance indicators, manage cash flows and more. Several virtual CFO’s offer other business financial solutions, such as accounting and bookkeeping.

When utilised effectively, you can use a virtual CFO to function as your remote financial department. All you have to do is find the right virtual CFO for your business needs and goals.

What Are The Benefits of Hiring a Virtual CFO?

Here are some of the benefits you can reap from hiring the right virtual CFO for your business:

Access to a Team of C-level Financial Officers

When hiring a virtual CFO, you get access to a team of proficient and talented C-level (chief) financial officers. This means that you can have specialists in different areas working together to provide the best financial consultation and management for your business.

You can ask them for advice on budgeting, cash flow management, tax planning strategy, financial projections and forecasts, cost controls, and more.

Cost-effective

Hiring a virtual CFO is more cost-effective than hiring or building your own finance team. You don’t have to pay for their day-to-day salaries and benefits, only for the services you need on specific projects or tasks.

Virtual CFO’s offer customisable plans depending on your company’s needs and size. Furthermore, you have access to a team of experienced financial experts at a fraction of the cost.

Minimise Delays and Time-off Issues

You might be affected by employee absences when you have an in-house finance team. The same applies when one of the members resigns or takes time off for personal reasons.

With a virtual CFO, you don’t have to worry about these delays and time-off issues as they can quickly assign someone else to take over the task. They also have a system in place that allows you to switch seamlessly between specialists depending on the task at hand.

Improve Productivity and Output

When working with a virtual CFO, you’re not only limited to working with one or two people. You have access to an entire team of professionals that can provide you with the best financial advice and service. This allows you to boost your company’s productivity and achieve goals on time.

Additionally, since you are working with a team of business financial experts, you don’t have to worry about making mistakes or overlooking essential steps.

Flexibility To Scale Up or Down

As mentioned, you can choose a customised plan for your company’s needs. This allows you to scale up or down depending on the tasks without having to build an entire in-house finance team and worry about paying their salaries.

For example, if you only need help with your taxes and creating financial projections for the next six months, then you only have to pay your virtual CFO for that task. If you want to create a comprehensive financial and investment strategy for the upcoming month, you can speak with your virtual CFO and pay for that specific service.

Access to Tools and Proven Strategies

Virtual CFO’s have access to the latest financial tools, software, and proven strategies to help you manage your finances better. They can also offer advice on how to lower costs while increasing profits and productivity.

Furthermore, they are up-to-date with the latest tax regulations and laws so that you don’t have to stay updated yourself.

When you engage with a virtual CFO, your business can benefit from these tools, processes, and strategies. With their help, you can easily make the best decision for your business.

An In-house Team of Accountants vs. Virtual CFO

When discussing business finances, many business owners quickly turn to accountants. However, it’s important to note that a virtual CFO goes beyond what an in-house team of accountants can offer.

A virtual CFO provides strategic advice, financial planning, and operational insight, which is more than what an accountant can do. Furthermore, their sights are set on what the future holds for your business. They utilise your current data and information to develop strategies that allow you to stay ahead of your competitors and make the most out of your finances.

In contrast, accountants are focused on the history of your accounts and finances. They are more concerned with tax regulations, filing taxes, and ensuring your business complies with the law.

In terms of function, accountants are purely legal and financial. A virtual CFO focuses on the operational and strategic side of the business and provides a comprehensive solution to your financial needs.

Schedule a Free Strategy Session With the Lucent Team Today

Working with a virtual CFO offers a breadth of benefits. From improved productivity and access to the latest financial tools to scalability and flexibility, you can depend on a virtual CFO to help you with your day-to-day financial operations.

If you’re considering hiring a virtual CFO, our team at the Lucent Advisory can help. We’ll discuss your business needs and develop a tailored financial plan to help you reach your business goals in no time.

Get in touch with us today and schedule a free strategy session with our team of financial experts.