Like an in-house corporate CFO, an ou stsourced CFO provides high level financial and systems analysis, helps the management team understand the Company’s financial position, and provide actionable data that is in alignment with the strategy and direction of the company. Some popular challenges that an outsourced CFO can help resolve are, but not limited to, cash flow analysis, cash flow forecast, vital numbers and key metrics identification, and the measurement and tracking of the company’s financial performance.
Unlike an in-house corporate CFO, an outsourced CFO is a lot more feasible to bring into the ranks for an entrepreneurial business that is doing between $1 million to $20 million in revenue. While most in-house corporate CFO are used to the stability and structure of a large corporation, the new breed of outsourced CFOs are a lot more adapt to the fast-moving nature of small entrepreneurial businesses. An outsourced CFO typically share their expertise across a few small businesses; allowing them to learn and adapt at an accelerated rate, all the while reducing the burden of their salary by spreading it across a few clients.
The cost of hiring a full-time in-house CFO can cost anywhere between $180,000 to $350,000 before taxes, benefits, and training. An outsourced CFO typically cost less than $100,000 per year, a fraction of what it used to cost to bring on an in-house CFO.
DeepSky’s Outsourced CFO Service provides a more compatible relationship at just around $1700 per week (less than $89,000 per year.) That’s at least 49% of the cost when compared to an in-house CFO.
All of DeepSky’s Outsourced CFO Services are priced upfront so there are no surprises at the end of each period. We spend a considerable amount of time to understand the financial needs of your business, your top of mind concerns, and the strategic direction of your business so that we can align your outsourced CFO’s efforts with it.
An outsourced CFO’s job goes beyond the accounting department. They are really the financial liaison to the rest of the company. An outsourced CFO’s primary job is to align the financial operations with the company (CEO’s) strategic directions, analyze and communicate the financial finding of its accounting department, and hold the rest of the company accountable to their respective vital numbers and key metrics.
Typical outsourced CFO responsibilities include (but are not limited to): financial strategy, cashflow forecasting, department performance analysis, efforts vs financial results analysis, financial systems and processes design and build, vital numbers dashboard building, interpreting financial reports and schedules, cost analysis, revenue analysis, etc.
Some tasks that are better suited for a traditional in-house CFO are these: merger and acquisition, dealing with financial audits with an outside CPA firm, negotiating with banks and other financial institutes, capital structure, and fundraising.
We process bills/invoices on a daily basis, so you can expect the bill/invoices be set up in system within 24 hours. We’ll also send out a reminder for the next 2-weeks bills, so you can anticipate the cash outflow without any surprise.