What is the added value of an outsourced CFO?
Optimal financial management: setting margins, cash optimization, reporting and financial dashboards for effective decision support, optimization of development strategies and investment, organization and processes, implementation of ERP (official partner Odoo).
Saves time for the management of the company.
Outsourcing: an investment trust.
The added value of an external CFO is calculated in three ways: to optimize the financial management of the company, the relief work of the director, investment trust via outsourcing.
Optimize financial management: a direct impact on profit.
The function of CFO is a support function. It sets up a framework and generates information on the health of the company and each activity. Although not directly generating revenue, this expertise is required of a strategic point of view and optimizes the profit of the company.
Optimize the expertise and time of the director: a direct impact on turnover.
Suppose that the administrative and financial tasks you entrepreneur, take five days per month. The intervention of an external CFO allows you to decrease your involvement to one day per month for strategic decisions. The entrepreneur can then spend 4 days saved the commercial and technical. With your expertise in these areas, this new allocation of time causes a substantial increase in the turnover of the company. Beyond the time savings, outsourcing Financial Officer helps you clear the mind of financial problems and you concentrate on your core business.
Outsourcing: an investment trust.
The main barrier to investment in the function of CFO is generally not the relevance of this function, but the cost. A full-time CFO is too expensive and unnecessary for most SMEs.
Outsourcing Financial Officer removes this barrier and allows you to invest in the finance function smoothly. This aspect allows to control the cost but also the integration of a financial director of the company manager and his staff.
What is the difference between accountant and CFO?
Expert Accountant: Legal Speaker, the accountant monitors the financial situation of the company and is responsible for reporting to local authorities.
CFO: Strategic Speaker, CFO develops financial management of a company with the right tools and an analysis of the situation of the company.
The two functions are complementary and essential for SMEs. Like FALINWA offers outsourcing as a financial manager, the accountant may also be an external function of the company.
When to call an external CFO?
Useful as soon as possible.
Required when the financial risk increases: stages of development, project development, restructuring.
You have created an SME. You have currently no financial direction, but you do not feel an urgent need. This is the perfect time to make use of an external CFO. We take non-emergency collaboration to establish a strong foundation:
- financial management for your business.
- staff trained in management tools.
- knowledge of the company and its field for external CFO.
This collaboration is part of the length and helps spread the costs over each month.
So far, the financial risk of your business was weak and your development depended primarily on the commercial and technical aspects - customers and nice enough for your development. The financial management of your business was simple. You pressed an accounting assistant and some tables Excels for all of your financial management.
Today the company is growing and this approach shows its limits:
- risk of errors in tracking orders / payment tracking.
- lack of visibility on cash.
- lack of financial information for the management and decision making (cost control, margin calculation, etc).
- lack of time to devote to this task.
The development of your company introduces a significant financial risk and financial management application suitable. Support the development of your business an integration of an external CFO can integrate the management of financial risk in your management.
The implementation of a project depends directly on the financial returns and risks of a project. The calculation of the expected return dependent on assumptions, it is easy to force a project to be profitable - just make assumptions that are right. It is more difficult to calculate an expected return next several scenarios, anticipate potential risks and estimate the provisions for risks, optimize profit.
During project development (creation of a subsidiary or developing a new product), The technician duo / CFO allows a detailed analysis of the project's profitability. This study, which is crucial for a proper assessment of risks and opportunities is an opportunity to include an external CFO in your organization.
Your company is in a difficult situation and you need to make radical changes in order to continue your business.
Working with an external CFO can:
- analyze past financial management and its impact on the current situation.
- propose solutions for restructuring financially reliable.
The main disadvantage of this procedure is the cost at a time when you want to cut spending to a minimum.
The organization of the finance department: FALINWA acts as CFO and relies on a team / assistant internal to the company. The operating range of the part-time CFO.
Train people the finance department, make and check their work. production of reports, indicators of performance summaries and financial analysis for management.
Resume if necessary the financial management of the company at a preliminary mission 1 or 2 months. The organization of the finance department The proposed approach is a FALINWA pair work FALINWA CFO - Internal Assistant to the company.
This choice of structure has the following business benefits:
Autonomy in the daily management of the finance department.
Transfer of responsibilities to the assistant financial officer.
Optimization of the intervention CFO FALINWA - intervening only on tasks with high added value.
The perimeter of the part-time CFO.
1. Management of the finance department
The management of the finance department is done in tandem with management (or management assistant) which is operational and FALINWA leader who acts as a functional head. This dual management - and its inclusion in the organization - is important for the legitimacy of financial management to the finance department. During the first intervention, a significant time should be given to the team for both the train and get them used to the new organization. The presence in the offices of external CFO is rare, it is important to establish from the start a relationship of trust between the team and the external CFO.
The role of the CFO FALINWA as a functional leader is:
- Defining the scope / procedures of each member of finance department.
- Training concepts / tables used for financial management of the company.
- Checking job done / correction and explanation.
- Quarterly maintenance. If the finance department consists of several persons, CFO FALINWA will rely on an internal assistant to the company. For technical questions, employees can ask questions directly to the CFO FALINWA (email, phone).
2. Produce reporting and performance indicators, conduct financial analysis
The second role of the CFO is to produce FALINWA for management of reports, allowing to have an overview of the health of the business and performance indicators to better assess the axes of development possible. The summary tables are made by the CFO FALINWA for the following reasons:
Verification, consolidation and correction tables managed by the finance department. Management of confidential information: integration costs of salaries, margin calculations. IT and financial skills: the production of summary tables requires both a mastery of computer skills and a clear vision of the synthesis. The purpose of performance indicators - illustrated with graphic - is to report to the director only relevant information for decision making: overall health of the business, cash flow statement, margin projects, variable costs and fixed the company by cost.
3. Develop a suitable financial management
The establishment of an external financial management often involves the overhaul of the financial management of the company and the development of a responsive enterprise solution. The work of setting up bases is performed early collaboration through an assignment of one or two months - Mission to understanding the company, its stakeholders and its operation, develop custom tools and integrate the Director financial FALINWA in running the business. Excel is the preferred software as it adapts to the needs of a large number of SMEs. The establishment of an ERP Odoo type can also be studied.