When an Outsourced CFO Doesn’t Work

We value your money, that is why before you even invest a dollar in an outsourced CFO, we want you to give it some serious thought. To help you with your decision-making we are going to provide reason why you shouldn’t invest in an outsourced CFO. These reasons we have learned from our experiences with clients who we believe did not get the desired results. We hope these lessons guide your decision now whether to get an outsourced CFO, pause or seek an alternative.

Not the right fit for you:

We start off with the main reason not to get an outsourced CFO: It is simply we are not what you need now.

Data Entry

A bookkeeper to help you get your transactions in, get you up to date and up to speed with relevant financial records. An outsourced CFO is not exactly the right person for that job.

ERP/Software

You may get more benefit from a new ERP or enterprise resource planning system software to help you improve your business. You need a software consultant for that purpose. An outsourced CFO or even your finance team are not the answer to this concern.

Lack of Cash

Simply put you may need cash to get you where you want to go. The extra investment will push you forward.

These are concerns we aim to identify to business owners before they outlay a dollar in our services. We believe it is only fair to tell you what you truly need, considering the realities and challenges facing your business.

Goals

It is important we are aligned in our objectives and goals from this process. We have encountered business owners who are not clear on what they want to achieve from this process. They may feel an outsourced CFO is something they need for their business, or they knew someone who tried an outsourced CFO and it worked well for them. You must understand the reasons why.

We want to avoid a misalignment or no clear objectives at all.

Not Willing to Change

A business owner is entitled to do whatever with their business and however they wish to operate. We will not argue with that. But most people who get an outsourced CFO want guidance and access to sound advice to fully get return on your investment.

During discussions we want our views, findings, and recommendations to be challenged. It will also weigh down the good relationship if a business owner insists on making the same mistakes, and we are unable to stop it. Getting an outsourced CFO is a bad investment if business owners are unwilling to collaborate and work together to improve.

Your Team

You need buy-in from your team. It is possible the business owner and management team are completely invested in the process, but your team do not share your belief and enthusiasm. This lack of interest to buy into and fully participate and absorb the process can either be intentional or unintentional. Either way their actions will demonstrate this.

It is vital for the process to work for everyone in your company from the owner to the management people down to the finance team and other relevant staff to be on the same page as to the purpose and objectives of the process. If you cannot get your team to buy-in to the process, then that’s a reason not to invest in an outsourced CFO.

Recap

An outsourced CFO is not for you if your business needs right now is:

• A bookkeeper for your recording transactions and catching up on data entry.
• If you are better purchasing an ERP software instead.
• If you need more now is more money to push the business forward.
• If you are unwilling at this point to listen and be open to recommendations and pieces of advice.
• If you cannot get your people to buy-in to the purpose and process of implementing an outsourced CFO.

If you relate to some of these factors you may better off, saving your money and rethink getting an outsourced CFO for now.

But if you are sold on the idea an outsourced CFO is what your business needs and these elements are not relevant or they will not hamper you and your objectives, then we encourage you to act and go for an outsourced CFO now!