Guide to Outsourcing CFO for Every Business in Singapore

Outsourcing Accountant

Have you hired a Chief Financial Officer (CFO)? If not, do not fret. Hiring a full-time CFO may be too expensive for your small and medium enterprise (SME). This is why not every SME in Singapore has a CFO.

If you own a SME, chances are that you are managing financial duties and controls by yourself, or have left them to a bookkeeper who manages your billing statements and books. This is where an outsourced CFO comes in handy – he or she can add a level of flexibility and allow your company to benefit from such expertise without the hassle of paying full-time salaries and bonuses.

If you are considering outsourcing a CFO, read on for more tips.

Why Should I Outsource a CFO?

While business owners such as yourself are good at handling daily operations and understanding your customers, you may need guidance on where to find and make investments that could help drive business growth.

In some instances, an outsourced CFO can temporarily cover your CFO until a new one is hired.

What Will an Outsourced CFO Do for You?

Essentially, outsourced CFOs are appointed with the overall responsibility for the strategic planning and running of all finance activities of a company. An outsourced CFO will assess not only the costs of doing business but also the risks and threats that your business might face. They are responsible for strategic operations such as:

  • Advising on long-term business and financial planning for your management team
  • Providing leadership and direction for your finance and accounting teams
  • Overseeing financial reporting, forecasting and budgeting
  • Overseeing risk and compliance management frameworks
  • Reviewing all formal finance-related procedures

An outsourced CFO can help by taking responsibility of the financial aspects of your business, think about your company’s future cash flow and analyse your returns on investments.

When Should I Outsource a CFO?

In the early days of your company, you might be able to manage bookkeeping and expense management on your own. As your company grows, you will reach a point where you both need and want more sophisticated help. Perhaps you are looking at getting investors or perhaps your revenue is growing faster than you projected and you need extra reporting help. At this point, you may want to put your financials in more experienced hands.

This is because when your company is in growth mode, your working capital can be outstripped rather quickly. You may consider outsourcing a CFO on a project basis at this point to manage your financials and drive growth, while improving processes and controls.

As your business matures, hiring a professional may lead to significant cost-value benefits since it frees you up to concentrate on core business issues. Your outsourced CFO will be able to suggest financing options where required, such as bank loans, asset-based lending or private equity. This will raise the capital you need to sustain growth until your business is better positioned.

How Much will Outsourcing a CFO Cost?

An outsourced CFO is not an expense. In fact, good CFOs will add 1 to 2 percent of net income. This will more than cover whatever he or she is paid. Your outsourced CFO’s strong financial capabilities will also give your company the edge and the power to drive for long-term financial stability and growth.

What are Typical Work Arrangements for an Outsourced CFO?

Work arrangements for your outsourced CFO will differ depending on your needs. For instance, you may need your outsourced CFO to prepare your company’s budget for the next one to two years, or focus on the pros and cons of each business opportunity to support you in your business decisions. You may also need your outsourced CFO to complete more assignments after the project.

In most cases, it is sufficient for your outsourced CFO to visit your company on a weekly basis to keep a finger on the pulse. Nonetheless, like a business partner, he or she will be ingrained in every aspect of your business so it can be determined what to invest money in, and why.

Where Can I Find an Outsourced CFO?

There are several accounting and outsourced CFO options in the market. Simply search for recommendations on the internet using search terms such as “corporate services in Singapore”, or seek referrals from other businesses.

Do not hire the first person or firm you meet. Take into account the CFO firm’s credentials, background experience and skill sets against your business needs. If a firm has experience working with clients similar to your business, it is generally a good sign that they have the necessary expertise that your company needs. This is because different professional services firms may specialise in or have strengths in specific industries.

Let Corporate Services Singapore Offer Full-Service Support

In a growing business, business owners must know what they don’t already know. By bringing in a specialist, your company will be able to benefit from greater financial efficiency and better financing strategies to help your company achieve its goals.

At Corporate Services Singapore, we provide both growing and established businesses with experienced CFO-level talent on an outsourced, part-time basis at a fraction of the cost of a full-time employee. Our professional CFOs, accountants and bookkeepers will free your staff up for core business duties while fostering greater accuracy and compliance. With Corporate Services Singapore as your chosen partner, we will guide you, provide specialist advice and help you identify cost-saving strategies, fraud, theft, and waste. Our CFO services will also keep your company compliant with the latest financial & company regulations to ensure your company’s future growth.

Access expert financial advice and solutions and stay on top of your business with Corporate Services Singapore. To reap the benefits of up-to-date financial strategies and better access to a wide variety of industry expertise, give us a call at 6602 8286 or email us at info@corporateservicessingapore.com to get started today.

Posted in Accounting.