Comprehensive Guide to Outsourced CFO Services

Accelerate Your Profit with
Outsourced CFO Services.

Strategic growth should be available to all companies. We tailor our chief financial officer (CFO) services to meet your needs and budget—whether yours is a $1 million business or it’s topping $20 million.

Strategic insights shouldn’t be limited only to gigantic companies, and that’s why Ignite Spot is proud to be a trusted CFO service partner. Use this guide to learn what a CFO does, when trusting an external partner is the best fit, and what CFO services can do for you.

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Comprehensive Guide to Outsourced CFO Services by IgniteSpot Accounting

Chapter 1

What Does a CFO Do?

A CFO focuses on making your organization more valuable to shareholders and increasing the return on your business. They do this by forecasting cash flow, optimizing cost centers, managing corporate capital accounts, and introducing high-value processes.

This means more cash, increased profit margins, and more opportunities for
your company.

Common CFO services include:

  • Cash flow forecasting and management
  • Break-even analysis
  • Budget-to-actual reporting
  • Debt planning and reduction
  • Labor cost management
  • Raising capital
  • Variable versus fixed expense reporting

Ignite Spot CFOs do all of the above and more. We partner with business leaders who rely on us for setting goals, understanding how their businesses perform against those goals, and making strategic financial decisions with the future in mind.

Chapter 2

Do I Need CFO Services?

OK, but does your business really need  outsourced CFO services? Companies that go this route do so for  various reasons, from a lack of internal resources to a  need for insights from growth experts.

To find out if an external partnership could  make sense for your business, start by asking yourself a few questions:

Do I need to cut costs?

A virtual CFO performs all the services of an in-house chief financial officer but usually on a contract, part-time basis. As a result, CFO services make access to strategic financial advice affordable for small businesses. Plus, you control costs by getting only the services you  need when you need them.

Do I need customized service?

CFO services customize their scope of work depending on your organization’s size, industry, and financial needs. Your virtual CFO becomes your best resource for cutting costs within your business and its larger operations.

Do I need a (temporary) growth partner?

CFO services help you navigate different growth phases as you scale your business—whether it’s from $1 million to $10 million or $100 million to $500 million. As you grow and your needs change, your virtual CFO can help with your transition from outsourced CFO services to an in-house position.

Do I need an accounting partner with niche expertise?

Virtual CFOs usually specialize in one  industry, so they easily get to know your business. But they also have a history of  resolving diverse financial issues, with guaranteed experience in  situations similar to anything your organization may face.

Think CFO services could be the right solution for your business? Give us a test-drive.

Chapter 3

How Can CFO Services Improve My Business?

Ignite Spot’s outsourced CFO services focus on what will move the needle for your business. Whether it’s building a hiring strategy, getting shareholder funding, or growing to $10 million or more, your CFO uncovers tactics to meet your business goals.

Plan your future.

One of the most common tools small-business CFOs use is a cash flow forecast. This tool helps your team understand what could happen in the future based on the decisions you make today.

Monitor business performance.

You need a solid way to track your goals. Budgets are vital, but they don’t always get used. CFO services get your budget in place and analyze your company’s performance against it.

Control the storm.

For businesses on the verge of a cash crunch, knowing your game plan is crucial. Every business faces hard times, and your CFO can help you dig deep and control the excess when it happens to you.

Build your team.

When is the right time to hire? Is your staff operating efficiently? Are you overstaffed? Can you afford to give team members a raise? Your CFO will map your staffing needs to create a scalable solution.

Grow your wealth.

The secret to growing wealth is controlling your fixed and variable costs. Your CFO will use financial reporting tools such as variable and fixed expense reporting to identify opportunities to spend in ways that further your business goals.

Manage debt.

Your CFO helps you optimize your liabilities. If your company has debt, your CFO can create a reduction plan to get you back on top.

Get your business on the right path toward a successful future by putting the puzzle pieces in place. CFO services can move with you and adapt to your changing needs.

Chapter 4

Should I Outsource or Bring In-House?

You’ve thought long and hard and asked all the right questions during the ongoing dialogue in your head about how to manage your company’s finances. But the question of whether to build your accounting team internally or with CFO services is as much about the way your industry works as it is about saving money or even planning for growth. Consider when in-house or outsourced services make more sense.

When is in-house accounting and CFO services the best fit?

In-house accounting services are sometimes the best answer. Maintaining an internal team is usually ideal for specific types of industries. For example:

Industries That Are Paper-Heavy or Low-Tech

For paper-heavy industries, there’s endless recordkeeping—and lots of actual paper, including bills, receipts, and miscellaneous documents. An in-house accountant who knows the day-to-day is usually best equipped to manage the madness.

Companies That Are Inventory-Dependent

Because outsourced accounting experts aren’t on-site to make note of issues as they occur, an in-house accounting department makes more sense for businesses that rely heavily on product inventory. These details impact your financial health and planning, and without this intel, even the best accountant couldn’t accurately manage your books externally.

What industries might benefit from outsourced accounting and CFO services?

Outsourced accounting is all about steady collaboration. Organizations do really well with outsourced accounting services if they are:

Businesses That Are Tech-Savvy

When you hire outsourced accounting services, your team isn’t right down the street. Companies that are receptive to collaborating via apps and digital tools thrive in external accounting and CFO partnerships because it’s easy to coordinate in real time.

Companies That Are ‘Heartbeat’ Oriented

Businesses that can run on a “heartbeat”—or a steady schedule of activities—excel in outsourced accounting services relationships. If your business doesn’t mind a calendared cadence where your team follows a strict schedule of activities, outsourced accounting and CFO services could be a fit.

Why does onboarding take at least 90 days?

If you take the plunge and pursue an outsourced CFO service solution, remember one thing: Results take time. The first 90 days center around onboarding, during which time your burning financial concerns may take longer to address as your information is organized and your team gets up to speed.

Facilitate this 90-day onboarding process by organizing your books and providing your new team with tools for success:

  • Grant access to key systems.
  • Provide internal documentation.
  • Share email credentials and company  directory.

It takes at least 90 days for your own new hires to get into the swing of things. Set your expectations accordingly to allow your new CFO services partner the same learning curve.

"Businesses that can run on a “heartbeat” — or a steady schedule of activities — excel in outsourced accounting services relationships."

Chapter 5

Why Ignite Spot?

With your pick of the litter in the whole wide world of CFO services firms, you’re bound to have one question: “Why should I choose you?” Of course we think Ignite Spot is awesome, but we’re a little biased, so trust our record and business model instead.

Ignite Spot is one of the best outsourced accounting services firms—period. Why? Because to date, we’ve served more than 500 companies. And we do it all in your house—that is to say, right here in the U.S.—to provide all the benefits of a more local team. As a result, you’ll always work with a team that’s:

  • Available on your schedule to collaborate
  • In the know about local accounting practices
  • Close enough to visit if you need face time

Get what you need when you need it from a team that’s been in this game for 14 years.

Get a Free CFO Services Session

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Start Your CFO Services Partnership with Ignite Spot.

Do you need to start planning for the future? Is your business tech-savvy? Get an expert partner in your corner from Ignite Spot! Schedule your free CFO session, and download our e-book for more ways an outsourced CFO can help your company.

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Comprehensive Guide to Outsourced CFO Services by IgniteSpot Accounting