As a startup business, you’ve got a lot of things on your mind and your to-do list is never-ending.
If you’re considering hiring CFO services for a startup, you’re not alone. A CFO can be very beneficial for a startup, but do you need to hire a full-time CFO? The answer is no. You can actually benefit from a third-party CFO with expertise in your industry.
What is an Outsourced CFO?
This role does what a CFO would do on staff, but they work part-time, hourly, or per project. Their job is to be your consultant for strategic financial decisions. They have industry experience, have worked with companies at different stages of growth, and can look at your financial data to give you the answers you need to grow your business.
CFO Services for a Startup
So, now that you know what they can do, what should you expect if you hire CFO Services for a startup?
- Actuals vs. Budget – a CFO will be able to look at your costs and compare them to your budget to see if you’re on track or if something needs to be adjusted.
- Financial Projections – every business needs projections. They are what you can provide to investors to show that you’re a good bet for them. It is important to ensure these are accurate and not inflated.
- Financial Reporting & Presentations – a CFO can ensure your reports are accurate and ready to present to investors and staff. They can interpret the figures and go into detail about projections, models, and the theories behind them.
- Scenario Modeling – you want to know how your business will perform under different circumstances. That is where scenario modeling comes in handy. A CFO can create these models so you can see how decisions can impact your bottom line.
- Strategic Planning – an experienced CFO can help you navigate the consequences of decisions before you make them. They can advise you on strategies from both the financial viewpoint and the business viewpoint.
- Specific Guidance – if you’re hiring a CFO, you want them to have experience in your specific industry to give you the best guidance possible. Things like building your team, funding options, and legal team liaison are just a few items that can be crucial for your success.
- Teamwork – they have to be able to work with all members of your team because every department affects the bottom line. For example, knowing what staff needs to be hired or fired can make a big difference in budgets.
Choosing the right CFO services for a startup is an important decision. With Reconciled’s virtual CFO services, you get industry experts that care about your business. They will provide the information and input you need to succeed.