Key Responsibilities of an Outsourced CFO

The outsourced CFO takes responsibility for the entire financial operation of the client company, and in some cases, also supports functions related to financial administration. Additionally, the outsourced CFO brings peace of mind to the company’s top management, as they are responsible for tasks that every company must handle – ultimately falling under the responsibility of the company’s board. In this article, you’ll find the key responsibilities of an outsourced CFO.

Finaly Oy is a CFO consultancy firm specializing in financial management. Finaly Oy aims to establish a completely new way of utilizing financial management services as part of the client’s organization and integrate financial management culture into the everyday operations of startups and SMEs.

Embedding Financial Management Culture in Companies

Our idea is that the outsourced CFO takes responsibility for the entire financial operation of the client company. For this reason, the CFO also considers how the aforementioned elements of the company’s financial management are best handled. The outsourced expert also serves as a liaison with potential other partners, such as accounting firms. To ensure that financial management is as simple and flexible as possible, the outsourced expert may also be responsible for financial IT matters and ensuring that available data is utilized optimally by the company.

One of the CFO’s most important tasks is to initiate discussions on factors that affect long-term profitability and cost-effectiveness of the business. A modern CFO is a genuine business partner who seeks and suggests alternatives, as well as coaches the organization in financial matters, teaching and advising. The CFO also ensures the timeliness of various financial processes to prevent unnecessary disruptions to the company, such as changes in the accounting firm’s personnel.

Responsibility for Company Financing and Cash Flow Monitoring

An outsourced CFO often also oversees the company’s financing and potential financing options, especially in growth situations. At the same time, the expert supports the top management in planning and managing the cash position and cash flow forecasts. Due to financial monitoring, the outsourced CFO is also an important support and partner for the company’s CEO – often a person with whom different options can be discussed to enable high-quality growth.

Providing Peace of Mind by Addressing Mandatory Company Matters

An outsourced CFO is a great opportunity for many SMEs also because it provides peace of mind that mandatory tasks for every company are handled properly. For this reason, an outsourced CFO may also serve as the secretary of the client company’s board – bringing rhythm and structure to board activities and ensuring that the aforementioned mandatory measures are taken in accordance with the Companies Act.

What are not the tasks of an outsourced CFO?

We have written on our own service pages as follows:

“The outsourced CFO can focus on providing clients with only the most essential services. You don’t pay for unnecessary services, and you get expertise that genuinely adds value to your company.”

With this explanatory message, we want to convey that the purpose of the outsourced CFO is to genuinely handle only those matters that are essential and necessary for the client company at that moment. This means that not all client companies necessarily work with the same service package. Additionally, this means that an outsourced CFO is not the same as an accountant or accounting firm – we do not handle tasks such as company financial statements, accounting, or payroll ourselves.

Why an Outsourced CFO Is a Good Option for an SME?

The need to adapt to changes and maintain modern financial management exists in all companies. However, in the daily life of SMEs, there is rarely enough work for a full-time CFO. Therefore, an outsourced CFO is a sensible way to avoid hiring a full-time CFO, which is naturally a significant cost and resource issue for every company, and at the same time, gain the benefits of a part-time professional. Instead of hiring internally (which also takes a lot of time and money) a “someone-finance-beginner” as a substitute for a CFO, it is more flexible and profitable for the company to gain the same benefits and advantages through outsourced services. At the same time, even though one expert from our team takes responsibility for one client company, all our clients still benefit from the expertise of our entire team. An outsourced CFO frees up the CEO’s time for other tasks and supports their work.

Working with an Outsourced CFO Should Not Differ Much from the Typical Operating Model

Working with an outsourced CFO should not significantly differ from working with an internal CFO. The expert can work as agreed, even in the client company’s premises, while still utilizing the extensive expertise, perspective, and experience network of Finaly. We at Finaly aim to ensure that one expert from our team handles a maximum of 3 – 5 clients, ensuring that there is enough time for each client and that the entire expertise of Finaly is available.

Summary – These Are the Key Responsibilities of an Outsourced CFO

  • The company’s financial situation is under control, and surprises are avoided; this is ensured by timely continuous reporting.
  • Embedding financial culture and bringing peace of mind to the organization
  • Taking responsibility for the company’s financing options and cash flow monitoring as agreed
  • Organizing and managing accounting and payroll
  • Outsourced service providers must also be managed and kept up to date.
  • Supporting the company’s top management, especially the CEO, as a coaching partner

Does your company need coaching on financial matters? Contact Finaly’s expert team, and let’s see what we can do together!

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