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How Much Does An Outsourced CFO Cost?

Discover the costs of an outsourced CFO for small businesses and the many benefits they can deliver for a company’s growth. Get reliable guidance without full-time fees.
How Much Does an Outsourced CFO Cost?

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Considering hiring a CFO may be difficult to justify if your company is small or in an early phase. Full-time salaries can be a hefty expense. In the United States, the average annual salary for an in-house Chief Financial Officer amounts to approximately $428,000.

Hiring a Chief Financial Officer and the costs of doing so can be intimidating for small businesses. Hiring an executive-level employee can add to your operational costs, while not having reliable financial guidance from an experienced financial mind could have serious consequences.

That’s why many small business owners outsource their financial requirements.

An outsourced CFO firm has professionals with extensive experience across various industries. Sometimes, an outsourced CFO may be referred to as a fractional CFO.

The cost of an outsourced CFO depends on several factors, most importantly, the size of your company. However, outsourced CFOs offer a distinct advantage to small businesses wanting to grow: scalability. This means you can utilize their services only when you genuinely need them.

Outsourced CFOs Deliver Sustainable Growth

Outsourced CFOs can offer much value to companies of all sizes, especially small and venture-capitalist firms. However, if you’re running a smaller business, engaging the services of an outsourced CFO can be particularly beneficial in resolving many of your financial challenges.

Hiring an outsourced CFO has many appealing benefits. The most obvious is their fees are often offset by the sustainable growth, cost savings, and expert advice they provide. These things contribute to improved financial performance.

These professionals possess diverse skills and can streamline various financial operations within your company, establishing a foundation for sustainable expansion. Through financial modeling, cash flow analysis, and strategic planning, outsourced CFOs can provide valuable insights and recommendations. They excel at interpreting financial data to uncover meaningful ideas and strategies that can drive your business forward.

Engaging outsourced CFO services can also enhance your appeal to investors and board members by effectively showcasing your financial stability and the strength of your financial strategy. With their expertise in data analytics and business intelligence, they can provide a clear and compelling presentation of your financial position.

What Does An Outsourced CFO Cost?

The cost of an outsourced CFO depends on the duties they are asked to fulfill. These duties will determine the fees associated with the role. The nature of the work and the time commitment involved will determine the overall expense for your business.

Typically, outsourced CFOs charge monthly rates ranging from $1,000 to $12,000. Hourly rates, on average, fall between $185 and $350. The precise amount will depend on factors such as the CFO’s experience level, location, and the nature of your business.

To ensure an accurate scope and cost, you need to have a clear vision of what success may look like. While it may not always be easy for you to determine your exact needs, you should at least be able to articulate your desired direction and visualize a successful outcome.

Start By Identifying What You Need

What are your expectations for a CFO and their role in your company?

You may already have a bookkeeper and controller, but now you require a CFO to provide strategic financial guidance, advanced budgeting, and forecasting capabilities.

Outsourced CFOs propel business growth

Alternatively, you might need a CFO who can handle both the responsibilities of a controller, such as accounting and financial reporting tasks, and the broader functions typically associated with a CFO.

Reflect on what prompted you to consider outsourcing a CFO in the first place. This will help you define the precise CFO services you need. It could be feedback from your investors indicating the necessity of a CFO’s expertise to address issues uncovered during the due diligence process. Alternatively, you may be approaching a due diligence process and recognize that your ability to answer crucial financial inquiries is limited, placing you at a disadvantage.

By identifying your specific needs, you bring yourself closer to answering the question, “What will be the cost of hiring an outsourced CFO?”

See The Bigger Picture with an Outsourced CFO

Business is challenging and fast-paced. You wear many hats that soak up all the time in your day with little time remaining to focus on big-picture thinking. Working with an outsourced CFO allows you to see the bigger picture through timely and accurate financial information and implement the right strategies for success in your business.

Our outsourced CFO services provide deep insight into your business and financial performance. We compare our findings with industry best practices. We aim to discover the big ideas to make your interactions more competitive.

Contact us today to learn more about our Outsourced CFO services for small businesses.

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