Accounting & Finance

5 things you should expect when hiring an external CFO

  • 3 min Read
  • September 21, 2021

Author

Escalon

Table of Contents

As your company grows, you may increasingly need professional guidance to implement your strategic vision and meet your long-term financial goals. But at the same time, you may not require the services of a full-time chief financial officer.

In such a scenario, hiring an external CFO is an economical solution. Outsourcing the role affords your growing business access to a finance expert when you need them, without the cost of hiring a similar position in-house. 

What is an external CFO?




External CFOs are highly skilled professionals who work with companies on a project or hourly basis, sometimes for as few as even 10 hours per month. The role may encompass a broad range of responsibilities, often those that the existing team does not have the skills, experience or time to handle. But an outsourced CFOs service can be tailored according to the specific needs of the client.

The upsides of hiring an external CFO




Outsourcing CFO services allows you to hire for what your business needs when you need it. You can scale up or down on demand. Rather than feeling like you need to micromanage, which puts you and your employees at the risk of burning out, you will have an expert on hand who can see the big picture. The outsourced CFO can take ownership of time-consuming yet vital functions so you can focus on growing your business. But the benefits don’t end here.




Talk to us about how our outsourced CFO services can help your firm access financial expertise. 


What you can bank on when hiring an outsourced CFO service:

    • The best of both worlds – An external CFO gives your business access to the skills and expertise you need without the cost of a full-time C-suite employee’s salary. They can quickly get up to speed and begin tackling problems with minimal disruption.



    • Access to specialized knowledge – As your business scales up, the nuances of your particular industry may necessitate specialized knowledge. Many external CFOs have a specific industry focus, so you get access to that specialization and industry relationships that you might not otherwise be able to tap into.



    • Taking on additional duties over time – Your business may grow through mergers and acquisitions. This may involve an IPO, purchasing or selling a portion of a firm’s book of business, or acquiring a team or office from another company. An external CFO can work with your team on such projects and the duties they entail, like comparing potential investment returns, assessing financing and earn-out strategies or structuring a deal. Finance tasks stemming from expanded operations can also be done by the outsourced CFO.



    • Future readiness – An external CFO will prepare your company to move beyond analyzing cash management and keeping financials in order. They will help build a solid position for your company’s future as it grows. Also, financial planning involves many different facets, from deciding on new locations, sales growth and diversification, lease versus buy decisions, hiring key employees and more. Because they possess expertise in such areas, an external CFO is uniquely positioned to help pull those together for your business.



    • Hands-on mentorship – Many firms use CFOs to mentor internal staff for development. Smaller organizations may not have the internal expertise or resources to develop a finance and accounting person. Leveraging the skills of a fractional CFO to mentor employees can be a great option.



Want more? Escalon has helped over 5,000 companies across a range of industries to utilize the experience and knowledge of financial experts to tailor their financial strategies and solutions. Talk to an expert today.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

Accounting & Finance

Q2 Business Planning: Adjusting Your Financial Strategy for the Rest of the Year

By the time Q2 rolls around, many startups have a clearer picture of their performance and market positioning compared to...

Read More
People Management & HR

5 Key HR Challenges to Address Before Summer to Keep Your Team Engaged

For many startups, the summer months can be a dual-edged sword. On one hand, warmer weather and looming vacations can...

Read More
Taxes

How to Maximize Your Tax Deductions: Essential Tips for Startups in Q2

Tax season often triggers stress and complexity—especially for startups laser-focused on building products, acquiring customers, and scaling operations. Yet savvy...

Read More
Startups

Mid-Year Financial Checkup: How to Assess and Adjust Your Startup’s Budget 

The halfway mark of any given year is more than just a date on the calendar; it’s a valuable checkpoint...

Read More
Consumer Goods

Inventory Accounting 101: Navigating Costing Methods and Their Impact on Financial Health 

For consumer goods companies, managing inventory efficiently is critical—not just for operations but also for financial health and risk management....

Read More
Technology & Security

Compliance Considerations for SaaS: Protecting Data and Staying Secure

As more businesses transition to Software-as-a-Service (SaaS) solutions, data security and regulatory compliance have become top priorities. From handling sensitive...

Read More
Accounting & Finance

How Outsourced Accounting Supports Scalability in Portfolio Companies 

For portfolio companies, whether backed by private equity, venture capital, or family offices, scalability is essential for maximizing value and...

Read More
Consumer Goods

Insights from a Consumer Goods Expert: Building Brands, Inventory Management, and the Power of Outsourcing

Insights from a Consumer Goods Expert: Building Brands, Inventory Management, and the Power of Outsourcing  In a recent conversation with...

Read More
Private Equity

The Key to Private Equity Success: Strong Financial Oversight and Compliance

Private equity deals are becoming larger and more complex, making financial preparation a critical part of the process. Take Novartis’s...

Read More