What Is an Outsourced CFO and Why Would You Need One?

It should be noted that not every vCFO service offers bookkeeping and/or controller services. A business looking for transaction entry, AR, AP, Payroll, or any other similar offerings, should work with Decimal to handle the operations and lean on an outside CFO partner for strategic interpretations. As a company grows, its needs grow as well, though not all of a company’s needs scale at the same rate.

Certain startups can receive up to $500k from the government annually for their prior year’s R&D spend. Our dedicated compliance team is here to ensure your business stays in good standing and files operation, employer, and sales reports timely. Communication and collaboration are essential for outsourced CFO services. An outsourced CFO brings specialized knowledge and extensive experience to the table. They establish budgetary guidelines, allocate resources effectively, and monitor budget performance to meet financial targets. Many CPA firms have seen that outsourcing to India has drastically changed the scene.

When to contract vCFO services

At Scoven Hedge Fund Consulting, we believe in helping you do what you do best. In the investment world, that means helping you focus on managing your portfolio and raising capital, while we take care of the rest. We are an outsourcing resource specializing in the core non-investment functions of hedge funds, funds of funds, private equity firms, and other financial services organizations.

How Outsourced CFO Services Work

This is different from using a CPA firm to file taxes or execute an audit, as this is compliance-focused. A CFO helps companies become reliance-focused, meaning that financial data is used to make business decisions. Reliance-based accounting additionally provides insight into every department of your business, allowing you to position yourself for growth. Growing businesses would be smart to manage complicated finances by outsourcing their CFO instead of paying for a full-time staff member. Getting CFO outsourced services helps businesses acquire strategic insights, ensure they are following policies, and accelerate their growth.

Outsourced finance and accounting services

You two are now planning 6-12 months out, thinking 2 steps ahead of the other business managers. You’ve been so focused on pushing the sales team, that you haven’t even developed an operations KPI dashboard yet. The outsourced CFO offered you no advice – just a promise to review your financials and circle back with some thoughts. You begin by reminding them you studied finance when you got your MBA, then go into the stalled growth and shrinking profit margins as of late. There are many nuances and complexities to your business – your diverse customers, your latest round of hiring, your secret sauce – and, before you know it, you’ve been talking for 20 minutes straight.

However, an average company, with set goals and expectations, employing a virtual CFO spends at most $12k a month on outsourced financial services. Compared to the minimum salary of $225k for an in-house Chief Financial Officer, a company can save up to 50% by outsourcing to a virtual CFO. A virtual CFO, sometimes known as a fractional or outsourced CFO, provides all or most of the same services an in-house Chief Financial Officer would.

An outsourced CFO should exhibit both a strong financial background and leadership skills. Goal-based, outsourced accounting services for companies ready to scale. These decisions require not only good data and technology but also quality people, culture, risk management, a strong foundation and a strategic mindset. For CFOs who are working towards a CEO position, an ongoing trend that goes beyond calendar year 2025, these elements are critical to long-term goals.

Weekly calls are ideal for the first 2 months, and often scale back to biweekly or monthly once they are done transitioning CFO duties. Like a good mountaineering team, your fractional CFO should work in harmony with business operations, controllers, accountants, analysts, and bookkeepers. Just like you’d prefer a reputable mountaineering company over a lone guide, choose a reputable fractional CFO agency over an individual CFO.

• An outsourced CFO can assist you in creating budgets that align with your goals and priorities.
• An outsourced CFO is an experienced financial expert, outside of your own company structure, who provides strategic, fiscal & operational guidance.
• This can be a heavy burden, especially for smaller businesses or those just starting.
• Small companies (~$10MM in revenues) can expect to spend about $300,000 to $400,000 annually for a full-time CFO (including bonuses, benefits, overhead, and taxes).

NOW CFO is a “roll-up our sleeves” full service consulting firm with a singular focus on outsourced CFO, Controller, accounting, and finance needs. In Deloitte’s Global Outsourcing Survey, 65% of respondents said outsourcing helps them focus on core functions. Federal Reserve Chair Jerome Powell has insisted wages are keeping up with inflation, but while Federal data supports this, consumer sentiment contradicts it. With the average 4% raise barely maintaining buying power year over year, compensation will remain a critical focus for outsourced cfo millennial and Gen Z employees looking to start families.

Financial Reporting

India’s reputation for financial outsourcing is highly sought after due to its technical application expertise, minimal cost, and competent workforce. An in-house CFO is a full-time executive deeply integrated into the company’s leadership team. Most companies hire a part-time bookkeeper and tax accountant quickly. But, once you encounter higher-level financial challenges, it might be time to add an outsourced CFO, especially if a full-time hire is either cost-prohibitive or unnecessary.

You put the phone in your damp palm and call the CFO, hoping they will pick it up. This is urgent and you need advice ASAP – it’s not every day your biggest customer cancels their contract. No judgments, no hurried conclusions—just a genuine effort to understand the intricacies of your operation.