Your books are up to date. Do you need outsourced CFO support?

Business & Outsourced Finance

Outsourced CFO support gives a business access to senior financial judgement without appointing a full-time chief financial officer. It can include budgets, forecasts, management reporting and regular discussions about performance, funding and growth. The scope should follow the decisions you need to make.

Your bank accounts might be reconciled and the reports might arrive on time. Yet you still cannot answer a fairly simple question: can we afford the next hire?

That is a useful point to review the support around you. More reporting is not always the answer. Sometimes you need someone to help turn the reporting into a decision.

Start with the gap, not the job title

Bookkeeping usually focuses on accurate day-to-day records and agreed processes. An accountant may handle tax, annual reporting and advice. An outsourced CFO can bring a more regular focus to forward planning and commercial decisions. Those roles overlap, so agree who does what rather than relying on a title.

If invoices are missing and payroll information is unreliable, fix those foundations first. A detailed forecast built on inconsistent records creates confidence that the numbers do not deserve.

Ask what you want to decide

For an agency, the question may be whether another account manager will improve delivery capacity or simply add cost. For a medical practice, it may be whether a second location can support its own overheads. For a construction business, it may be how much cash the next project will require before progress payments arrive.

Bring two or three real decisions to the first meeting. A useful engagement should explain what information is needed, what will be delivered and how the analysis will change your next step.

Agree a manageable reporting rhythm

A monthly meeting might cover actual performance against budget, the cash outlook, a small set of operating measures and actions from the previous review. Businesses under cash pressure may need a more frequent rhythm.

The Australian Government’s budget guidance distinguishes a planned budget from a forecast that changes with circumstances. Keep that distinction useful: understand why results differ from the plan, then update expectations instead of defending an old number.

Decide who prepares the information and when it will be ready. A concise report delivered in time to act is generally more useful than a comprehensive pack delivered after the decision.

Keep the owner’s position in view

Business cash is often expected to fund personal plans as well. A new hire, equipment purchase and larger distribution may each look affordable when assessed separately. Put them in the same forecast.

Consider an illustrative professional services firm with profitable work but slow collections. Adding staff might be commercially sensible, yet the first few months of wages still need funding. A useful review considers the hiring date, collection assumptions and minimum cash buffer together. It does not treat accounting profit as cash available to spend.

What should you ask before engaging someone?

Ask who will lead the work, how often you will meet, what is included in the fee and which decisions remain with you. Confirm how the provider will work with your bookkeeper, accountant and lending adviser.

Does every growing business need an outsourced CFO? No. The right level of support depends on complexity, the capability already in the team and the decisions ahead.

Does outsourced CFO support replace the owner? No. It should improve the information and judgement available to the owner, with clear responsibility for approvals and implementation.

Speak with our team

For help with your business, speak with David Rosenthal or Dion Spice. Explore our outsourced finance and CFO support and business advisory services.

General information only. Seek professional advice on your circumstances before making financial or business decisions.