Is an Outsourced CFO Right for You?

October 16, 2024 by Kevin Kearney CPA

Outsourced chief financial officer firms provide you with an external expert to guide your company’s financial strategy, operations and planning on a part-time, contract or project basis. Leveraging this kind of external managed service can improve your company’s ability to adapt quickly and scale efficiently.

Outsourced CFOs are particularly beneficial for startups, growing businesses, or companies undergoing significant changes or facing financial challenges. They deliver bench strength for accounting, compliance and financial operations while reducing costs.

Examples of the benefits to your company of an outsourced CFO include:

Strategic financial planning — An outsourced CFO can analyze financial performance and identify future opportunities and risks to boost your company’s profitability and ensure sustainable growth.
Risk management analysis — An outsourced CFO can identify potential financial risks, from market fluctuations to regulatory changes, and develop strategies to mitigate them. They can also help safeguard the firm’s assets.
Financial reporting — An outsourced CFO can ensure that all financial statements — income, balance sheets and cash flow — are accurate and compliant with legal standards.
Cash flow management — An outsourced CFO can monitor cash flows to ensure your company can cover its operational needs. They can also identify growth opportunities, maintain liquidity during downturns and capitalize on market upturns.
Liquidity monitoring — An outsourced CFO can ensure that your company can cover its short-term liabilities and avoid financial distress.
Budget analysis — An outsourced CFO can provide budget reviews and adjust forecasts based on performance and changing market conditions, helping your firm use resources efficiently and maintaining financial discipline.
Forecasting — An outsourced CFO can analyze historical data and current market trends to estimate future financial performance, sales and expenses. They can help inform decision-making and strategic planning.
Reports and presentations — An outsourced CFO can provide reports and presentations necessary to make key business decisions.

Outsourced CFOs offer varying levels of engagement and commitment, including:

A fractional CFO is hired part time on a contractual basis to help your business expand and compete.
An experienced CFO will bring financial strategy and management skills to your firm, giving you access to an objective perspective without the overhead of a full-time salary.
A full-time CFO can be hired for a set time to navigate periods of significant change — for example, periods of rapid growth and/or mergers and acquisitions.
An interim CFO is hired during a transition period, often to cover a permanent CFO’s extended absence or to cover the CFO duties while your company searches for a permanent hire.

Why hire an outsourced CFO?

An outsourced CFO can help your firm achieve its financial goals through:

Cost-effective expertise — An outsourced CFO has worked with other industries and has a broad perspective, including specialized skills. At the same time, you can scale back the service once your company no longer needs the help.
Strategic insight — An outsourced CFO offers financial perspective that might not be apparent from inside the company. They have no vested interest and bring unbiased opinions that can be crucial when your company is facing tough financial decisions.

An outsourced CFO can instill confidence, steering your company to financial stability and success. They will help you understand financial processes like cash management, giving your company a strong financial foundation and assisting in decision-making to achieve growth.

If your company is well established, an outsourced CFO can assist with market expansion. They can offer complex financial analyses and conduct due diligence. They can provide accurate data to protect your firm’s interests and attract investors by accurately communicating your firm’s value and growth potential.

By using the outsourced CFO’s higher level financial planning, strategic guidance, risk management and financial reporting skills, your firm can grow and compete on a larger scale.

Financial management insurance – Outsourced CFO’s are often utilized in unexpected and urgent situations when in-house personnel suddenly resign, are terminated or are on an unplanned and indefinite leave of absence. They can step in immediately, run your financial operations and ensure your employees and vendors are paid without delay at a moment’s notice.

An outsourced CFO can bring unparalleled experience with countless companies of all sizes and various industries, as well as intimate experience with numerous accounting software systems. This breadth of knowledge minimizes any downtime and learning curve, providing your organization with an invaluable turn-key management resource.

Consider an outsourced CFO when you need tailored, project-based solutions or when it’s time to expand beyond just tax services. CironeFriedberg provides outsourced CFO, Controller, Bookkeeping, and Accounting services to meet the needs of businesses. Learn more about our services here.

HAVE QUESTIONS?

Learn more about our outsourced Client Accounting Services, designed to help keep your business operating as profitably as possible with a host of outsourced services. You can reach us by phone at (203) 798-2721 (Bethel), (203) 366-5876 (Shelton), or (203) 359-1100 (Darien), or email us at info@cironefriedberg.com.

7 Reasons to Outsource Your Bookkeeping

February 24, 2024 by Kevin Kearney CPA

Accurate and up-to-date financial records play an important part in your business’s success, but the daily tasks required to maintain these records fall to the bottom of your to-do list. That’s understandable — you didn’t go into business to become a bookkeeper. Wading through managing employees, paying bills, making long-term decisions and analyzing costs can consume your day. Bookkeeping takes up a lot of your valuable time.

Bookkeepers are critical to keeping the back of the house running. Paying the bills on time ensures your credit score remains stellar. They deposit your checks, so you have the cash flow to pay those bills. They enter all of your transactions in your accounting system so you can generate financial statements for your management, investors, banks and creditors.

You may be considering hiring a bookkeeper to manage accounting tasks in-house as a solution, but it might not be the best solution. Below are seven reasons why outsourcing could be better for you and your business.

Savings on payroll and operating costs. Instead of hiring a new employee, you’ll keep payroll costs lower by not recruiting, training and offering benefits to another hire. Rather than funneling your payroll funds to support staff, spend more on core employees.
Comprehensive knowledge without training costs. You can rely on bookkeepers who are up to date on the latest QuickBooks features and have comprehensive knowledge of tax rules and reporting methods. Having a team working for you means you’ll have access to agents with the training you need.
Time savings and less paperwork. Logging, analyzing, and reconciling payments and other financial records takes time. No waiting for an in-house bookkeeper to settle in and adjust to your company. Outsource these tedious, time-consuming tasks and have more time for customer service, evaluating processes and improving operations overall.
Streamlined process with online portals based in the cloud. You’ll have access to your records at any time. This means cross-collaboration with centralized, organized data.
1. View your business’s financial status as money moves in and out. Expenses and income are sorted, giving you more detailed insights into your business.
2. Cash flow history, profits and losses, and your balance sheet are available for sharing with partners, employees, legal counsel and financial advisers. Quantitative insights are available.
Outsourced bookkeeping is staffing insurance. What happens when your bookkeeper quits with little to no notice?
1. Are you prepared for the unexpected disruption if staff out sick for a day, a week, or worse, permanently? Outsourcing to CironeFriedberg ensures that your bookkeeping continues no matter what.
More informed business decisions. Have the numbers to back up your instincts and gut. With financial intelligence, you can make better decisions.
1. Virtual bookkeeping helps you determine which customers or clients to invest more money in and which to stop marketing to.
2. Analyze when you need and can afford new employees. Calculate how much payroll you can sustain.
3. Use your valuable time and energy for growing your business. Outsourcing bookkeeping frees your time for what you do best.
Tax-ready and audit-ready financials. Professional bookkeeping services prepare financial records for accountants, the IRS and banking institutions. You won’t have to worry about your books’ accuracy or need to question the integrity of your financial data for investor reviews either. Simplify tax preparation and take advantage of potential tax deductions.

Maybe your bookkeeping needs are as simple as tracking cash flow. Keeping up to date on accounting tasks is essential. Outsourcing your bookkeeping services with CironeFriedberg is scalable. Services grow as you grow. Just give us a call to get us started on your books today.

HAVE QUESTIONS?

Learn more about our Client Accounting Services, designed to help keep your business operating as profitably as possible with a host of outsourced services. You can reach us by phone at (203) 798-2721 (Bethel), (203) 366-5876 (Shelton), or (203) 359-1100 (Darien), or email us at info@cironefriedberg.com.

Ten Best Practices for Year-End Close of Business

December 5, 2023 by Kevin Kearney CPA

As the year draws to a close, businesses of all sizes face the annual ritual of the year-end close. This critical accounting process involves more than just crunching numbers and balancing books; it’s a strategic endeavor that can significantly impact a company’s financial health and compliance.

Here are 10 essential accounting best practices for year-end close of business. They offer valuable insights and practical tips to help organizations navigate this complex and crucial period with precision, efficiency, and confidence. Whether you’re a startup or a large, established corporation, mastering these best practices will empower your business to thrive in the year ahead.

Lock down closed months in your accounting system as you progress through the year to ensure no one enters transactions or journal entries into prior months that have already been reviewed, approved, closed and published in financial statements to management.
Ensure Form W9’s are complete and on file for all vendors that need to receive a 1099. This is a process that can easily be done during the year (preferably as new vendors are added) so you are not scrambling in January when you are in full year-end closing mode and on tight deadlines.
Create a checklist of tasks and responsibilities (like those listed here). Assign to specific personnel with deadlines. Review with your team before and during the year-end closing process to ensure you are on track.
Perform a sales cut-off review. Ensure all sales before year end are billed and included in current year sales. Ensure sales made early in the following year are properly excluded from the prior year’s sales.
Closely review all overdue accounts receivable at year end. Contact customers to collect overdue balances and send delinquent accounts to collections.
If you have inventory, do a complete physical count at year end. Adjust the inventory value on the books to equal the physical counts on hand.
Ensure all current year vendor invoices are received and accounted for.
Do a search for unrecorded liabilities by reviewing bills paid early in the following year to ensure any that pertain to the prior year were properly accrued for at year-end.
Reconcile all balance sheet accounts. If your balance sheet is clean and reconciled, your income statement should be simple.
Perform an analytical review of your year-end financial statements. Compare the current year to the prior year and to the budget. Investigate any changes that exceed your tolerable threshold. Ensure all final differences are substantiated and make logical business sense.

Are you are looking for accounting support for your business? Our Outsourced CFO and Controller Services and Client Accounting Services can be an excellent and cost-effective solution.

If you need assistance or have any questions on the information in this article, please call your CironeFriedberg professional. You can reach us by phone at (203) 798-2721 (Bethel), (203) 366-5876 (Shelton), or (203) 359-1100 (Darien) or email us at info@cironefriedberg.com.

Maximizing Business Success By Outsourcing CFO Services

October 27, 2023 by Kevin Kearney CPA

In today’s dynamic and competitive business landscape, staying financially sound and strategically agile is crucial for success. While many small and medium-sized enterprises may not have the resources to hire a full-time Chief Financial Officer (CFO), they can still harness the expertise of financial professionals through outsourced CFO services. In this article, we’ll explore the numerous advantages that businesses can gain by outsourcing their CFO functions.

Cost Efficiency

One of the most apparent benefits of outsourcing CFO services is cost efficiency. Hiring a full-time CFO comes with a hefty salary, benefits, and other associated costs. In contrast, outsourcing allows businesses to access top-tier financial expertise without the overhead expenses of a full-time employee. This cost-effective approach is particularly beneficial for startups and smaller businesses with limited budgets.

Expertise and Experience

Outsourced CFO services provide access to a wealth of financial expertise and experience. These professionals often have diverse industry backgrounds and can bring a fresh perspective to your financial strategy. They have the skills to analyze complex financial data, identify trends, and make strategic recommendations that can positively impact your business’s growth and profitability.

Focus on Core Competencies

When you outsource your CFO functions, your in-house team can concentrate on their core competencies, such as product development, sales, and customer service. This allows your business to operate more efficiently and allocate resources where they are most needed, ultimately enhancing productivity and profitability.

Scalability

As your business grows, your financial needs may change. Outsourced CFO services offer scalability, allowing you to adjust the level of support you require. Whether you need strategic financial planning, assistance with fundraising, or help with day-to-day financial operations, you can tailor your outsourced CFO services to match your evolving needs.

Risk Mitigation

Financial regulations and compliance requirements can be complex and ever-changing. Outsourced CFOs are well-versed in these regulations and can help ensure that your business remains in compliance. This reduces the risk of financial penalties and legal issues, safeguarding your business’s reputation and financial stability.

Strategic Financial Planning

A seasoned CFO can play a pivotal role in developing and executing a sound financial strategy for your business. They can help you set financial goals, create budgets, and implement financial controls to manage expenses effectively. This strategic guidance can lead to improved financial stability and long-term sustainability.

Enhanced Decision-Making

Timely and accurate financial information is crucial for informed decision-making. Outsourced CFOs can provide real-time financial insights, including financial statements, cash flow projections, and performance metrics. Armed with this data, you can make informed decisions that drive your business forward and capitalize on growth opportunities.

Access to Networks and Resources

Experienced CFOs often have extensive networks within the financial industry. This can be invaluable for businesses seeking capital investment, partnerships, or strategic alliances. Your outsourced CFO can leverage their connections to help your business access the resources it needs to thrive.

Cost Reduction Strategies

A skilled CFO can identify cost reduction opportunities within your organization. They can analyze your expenses, identify inefficiencies, and implement cost-saving measures that can significantly impact your bottom line. This proactive approach to cost management can lead to substantial savings over time.

Improved Financial Transparency

Outsourced CFO services can enhance the transparency of your financial operations. They can implement robust financial reporting processes, ensuring that you have a clear and accurate picture of your business’s financial health. This transparency is essential for building trust with stakeholders, including investors, lenders, and partners.

Financial Forecasting and Risk Management

Financial forecasting and risk management are critical components of business success. An outsourced CFO can develop comprehensive financial forecasts that help you anticipate cash flow fluctuations and plan for contingencies. They can also implement risk management strategies to mitigate potential financial setbacks.

Objective Financial Advice

Outsourced CFOs provide an objective perspective on your financial matters. Unlike internal employees who may be influenced by internal politics or personal biases, outsourced CFOs offer unbiased advice that is solely focused on the financial well-being of your business.

SUMMARY

Outsourced CFO services offer businesses a strategic advantage by providing access to seasoned financial professionals without the costs and commitments associated with full-time employment. From cost efficiency and expertise to enhanced decision-making and risk mitigation, the benefits of outsourcing CFO functions are manifold.

By leveraging the expertise of an outsourced CFO, businesses can streamline their financial operations, drive growth, and achieve long-term financial sustainability. In an increasingly competitive business environment, outsourcing your CFO services can be a game-changing decision that propels your business to new heights of success.

Have questions?

For more information about how your organization can implement and benefit from outsourcing your financial services, please call your CironeFriedberg professional. You can reach us by phone at (203) 798-2721 (Bethel), (203) 366-5876 (Shelton), or (203) 359-1100 (Darien) or email us at info@cironefriedberg.com.

A Strategic Solution for Businesses: Outsourcing Accounting Services

September 19, 2023 by Kevin Kearney CPA

In today’s fast-paced business landscape, organizations must maintain precise financial records, navigate complex regulations, and make informed financial decisions to thrive. However, many businesses, particularly smaller ones, find it challenging to handle their accounting tasks in-house, especially in this tight labor market. Outsourcing accounting services has emerged as a strategic solution, offering a wide array of benefits that can significantly impact a company’s bottom line and operational efficiency.

Let’s delve into 12 comprehensive benefits of outsourcing your accounting services, covering everything from bank reconciliations and billing to accounts receivable, accounts payable, and more.

1. Expertise and Specialization
Outsourcing accounting services allows your business to tap into a pool of skilled and specialized professionals who possess in-depth knowledge of accounting principles, tax regulations, and financial reporting. These experts are up to date with the latest industry trends and can provide valuable insights that may be beyond the capabilities of an in-house team.

2. Cost Efficiency
Maintaining an in-house accounting department can be costly when you consider salaries, benefits, training, and overhead expenses. Outsourcing accounting services can significantly reduce these costs, as you only pay for the specific services you require. This cost-effective approach is especially beneficial for small and medium-sized enterprises (SMEs) looking to maximize their financial resources.

3. Focus on Core Competencies
Outsourcing accounting functions allows your in-house team to concentrate on their core competencies, such as product development, marketing, and customer service. This division of labor ensures that your workforce remains focused on activities that drive growth, while experts manage the accounting processes efficiently.

4. Increased Accuracy and Compliance
Accounting errors can have severe consequences, from financial loss to compliance issues. Outsourcing firms are dedicated to maintaining high levels of accuracy, adhering to best practices, and ensuring compliance with tax laws and financial regulations. This reduces the risk of costly errors and legal complications.

5. Scalability
As your business grows, your accounting needs may evolve. Outsourced accounting services offer scalability, allowing you to adjust the level of support you require. Whether you need help with basic bookkeeping or more complex financial analysis, outsourcing can adapt to your changing needs without the hassle of recruitment and training.

6. Improved Efficiency
Accounting tasks, such as bank reconciliations, billing, and accounts receivable management, can be time-consuming and labor-intensive. Outsourcing these tasks to professionals who specialize in them ensures efficient and timely completion. This can lead to faster processing, improved cash flow, and reduced operational bottlenecks.

7. Enhanced Risk Management
Sound financial management involves effective risk assessment and mitigation. Outsourcing firms are well-versed in risk management strategies and can help identify potential financial threats. They can also assist in establishing internal controls to safeguard your financial assets and reputation.

8. Comprehensive Financial Reporting
Accurate and timely financial reporting is essential for making informed decisions. Outsourced accounting services can provide comprehensive financial reports that include balance sheet accounts reconciliation, general ledger review for proper coding, and internal financial statements. These reports offer valuable insights into your company’s financial health, enabling data-driven decision-making.

9. Interim Staffing and Assistance
Outsourcing firms can offer interim staffing solutions to fill temporary gaps in your accounting department. Whether due to employee turnover, maternity leave, or seasonal spikes in workload, outsourced professionals can step in seamlessly, ensuring uninterrupted financial operations.

10. Assistance in Filling Open Positions
Recruiting and hiring accounting professionals can be a time-consuming process. Outsourcing firms can assist in recruiting and evaluating candidates for permanent positions within your accounting department. This collaborative approach ensures that you select candidates with the right skills and cultural fit for your organization.

11. Reduced Fraud Risk
Outsourcing accounting functions can help mitigate the risk of internal fraud. External experts provide an additional layer of oversight and accountability, reducing the opportunity for fraudulent activities within your organization.

12. Access to Advanced Technology
Outsourcing firms typically invest in advanced accounting software and technology. By outsourcing your accounting needs, you can leverage the latest tools and resources without upfront investment, ensuring that your financial processes remain efficient and up to date.

These 12 benefits demonstrate how outsourcing accounting services offers a comprehensive solution for businesses seeking to enhance their financial management and operational efficiency. From cost efficiency and expertise to scalability and risk mitigation, the benefits of outsourcing are diverse and impactful.

Outsourcing your accounting services can unlock the full potential of your business’s financial management capabilities. By partnering with experienced accounting professionals, businesses can optimize their financial processes, reduce costs, improve accuracy, keep payroll low, and make well-informed decisions. Today, outsourcing accounting functions is not just a strategic move, it’s a vital step toward ensuring financial stability, growth, and long-term success.

Learn more about CironeFriedberg’s Outsourced Accounting Services.

Have questions?

Case Study: Cash Flow for a Medical Practice

October 5, 2022 by Kevin Kearney CPA

At CironeFriedberg, we have extensive experience advising and working with physicians. We understand the changing landscape of the practice of medicine. Physicians want to provide optimal service to their patients within the context of challenging and declining reimbursements and increased paperwork.

Our goal is to provide physicians with timely financial statements, advisory services, and tax information to help them manage their practices efficiently and profitably.

Here is a Case Study that illustrates how we work with a medical practice.

SITUATION

A busy medical practice needed a cash flow analysis to determine how PPP funding would be used and establish a cash position in 12 months. With significant declines in revenue and a corresponding increase in expenses to be compliant with new safety regulations, the practice needed to ensure they had a handle on future cash flows. They needed to be able to understand how various growth models would impact their decisions.

SOLUTION

CironeFriedberg provided an Outsourced Financial Director who created a cash projection template spanning 12 months. She developed the template to be driven by assumptions that can be changed allowing for impact of those changes to flow through the projections. The result was a template that the client can maintain and update with a few assumptions to see the overall impact on the projections of various possible decisions or events.

BENEFIT

The ongoing critical data regarding cash flow position allow the owner to make sound, necessary decisions regarding the operation and growth of the medical practice. The flexibility of the projection model enables him to maintain optimum oversight of his business and anticipate how various scenarios might affect the business situation (e.g., COVID-19 disruptions).

Learn more about our Outsourced CFO/Controller services.

Is an Outsourced CFO Right for You?

HAVE QUESTIONS?

7 Reasons to Outsource Your Bookkeeping

HAVE QUESTIONS?

Ten Best Practices for Year-End Close of Business

Maximizing Business Success By Outsourcing CFO Services

Have questions?

A Strategic Solution for Businesses: Outsourcing Accounting Services

Have questions?

Case Study: Cash Flow for a Medical Practice

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