Why Modern Startups Choose Outsourced CFO Services

According to some estimates, up to 90% of modern startups fail. Many face early financial challenges they never overcome. Others find their footing but fail to grow enough to outpace rising costs. Issues like these are just a few reasons why more and more startups are choosing to outsource their CFO role. An outsourced CFO can help your startup move forward financially, prepare for growth, or find a way past sticky debt. They can leverage their expertise to bring immediate value to your company while saving money in the process. Here’s a closer look at why outsourced CFO services may be the right fit for your startup.

Instant Access to Financial Expertise

First, finding the kind of expertise you want from a CFO can be challenging as a startup. You may have to overpay or give up more equity than you’d like to attract the right candidate away from a more stable position. With outsourcing, this isn’t a problem. You get immediate access to a high-level CFO without having to find or hire one on the open market. That means getting the support you need now, even if you can’t afford to hire the same expert full-time. Your new outsourced CFO will be able to help you with most of the financial aspects of running a modern startup, including:

• Strategic advising
• Budgeting and forecasting
• Financial modeling
• Staff training and mentoring
• Risk management
• Cashflow forecasting

Pay For Services Only When You Need Them

You can also save a lot of money by working with outsourced financial experts. The key difference is being able to scale services up or down on an as-needed basis. For example, if you need extra help with forecasting in Q1, you could pay a fractional CFO until the job is done, then take the expense off your books again. Compare that to the amount you’d spend by hiring a full-time CFO. You might even have to give up more equity than you’d like to attract the right expert. This would put your business in a worse position in the long term just because it needs a little extra help today.

Prepare for Growth

Finally, working with an outsourced CFO can help your startup grow faster. The expert you hire can help with everything from KPI development to investment analyses for your next funding round. They can also streamline your books, make your company more attractive to venture capitalists, and prepare your business to pass whatever financial audits it may face while executing these strategies. The bottom line is that working with an outsourced CFO can help your startup scale faster. It’s an affordable way to access financial expertise before you’re ready to add another high-level employee to your full-time books.

Find Your Financial Expert Today With CFO Hub

Whether you operate in e-commerce, serve healthcare providers, or anything in between, finding the right outsourced CFO can help your startup thrive. So, why wait? Take the first step and start exploring these services at CFO Hub today.