5 Ways to Prepare Your Business for an Outsourced CFO
As a business owner, there are many hats that you must wear. One of those is the role of overseeing the financials of your business. It’s not uncommon for business owners to feel overwhelmed when trying to manage all aspects of their company, including financials, on their own. Therefore, many choose to outsource this role fractionally.
Hiring out fractionally means that your company receives the expert knowledge and tactile deliverables you need, on a part-time, on-demand basis. By utilizing fractional support, you only pay for the services you need, when you need them. Many businesses choose to go this route as it offers them more financial freedom and flexibility, while also receiving the professional support they require.
If you’re thinking about working with an outsourced CFO partner, then there are a few items you should consider and have prepared beforehand. By taking the time to have these 5 things prepared you can ensure that you are giving not only your business but your new financial partner the best chance for success.
1. Introduction to Key Stakeholders
The first thing you should do is introduce your new partner to the key stakeholders in your business. This includes your accountant, bookkeeper, bank manager, and leadership team. This gives your new financial partner a better understanding of how your business works and which team member is responsible for what.
2. Access to Systems and Accounting
It’s important to provide access to your internal accounting system, CRM, or any operational systems you have in place. This way, your new CFO partner will be able to understand how your business works and provide you with the support that you need. You should also have copies of your most recent accountant-prepared financial statements and visibility to your bank accounts, loan agreements, and other contractual agreements.
3. Business Structure
Ensure your new financial partner understands your business structure. This includes visibility to ownership structure, whether there are multiple companies, owners, or partners and any organizational charts that you have.
4. Consider Your Challenges and Strengths
Be aware of the challenges and strengths your company is facing. If you feel you need to, take the time to sit down and reflect on what your business has been facing recently.
A few thoughts to consider:
• What are your key pain points?
• What keeps you up at night?
• What are some things you’re doing well?
Next, take some time and brainstorm with your team. Once you are clear on these things, finding a financial partner who can help you overcome them will be an easier transition.
5. Know Your Vision
Take the time to ensure you understand and are confident in your vision for your company and the support you are looking for. Some key questions to think about:
• Where do you want your business to go in 1-3 years?
• Do you need succession planning?
• Are you considering a possible exit of the business?
You’ll also want to have a good understanding of what success looks like to you. This means thinking about what kind of results you want to see, what a successful partnership looks like, and how you want your business to grow.
Working with an outsourced CFO partner can be a great way to achieve success for your business. By preparing beforehand and taking the time to have a few key documents ready and in place, you can ensure that you are starting your new relationship on the right foot!
Part Time CFO Services works directly with business owners to improve a company’s long-term financial health with part-time financial support. Click here to learn more about our team of experts and how we can help you.