CFOs play a critical role in keeping the financial operations in order and drafting a strategy that guarantees ace financial health of the organization. However, not every organization has the financial or talent bandwidth to hire an in-house CFO.
That’s why outsourced CFO services have a growing global demand. Hiring an outsourced CFO however is not an easy task. A lot of organizations have no idea how to choose outsourced CFO services. If you are one of them, keep reading!
In this blog, Finsmart Accounting – the leading accounting outsourcing company in India – will share hiring tips and ideas to engage the right CFO talent in 2022. Are you ready to learn about how to identify the right outsourced CFO services?
Let’s go then!
#1 Know your challenges
The first and foremost thing to do before hiring an off-site CFO is to have a clear idea of your financial goals and challenges. Get a clear understanding of your current financial health and accounting problems. Try to understand what is affecting the organization’s financial well-being so that you can ask the right questions during the interview.
Here are some of the major financial challenges faced by organizations across the globe:
- Cash flow management
- Budgeting
- Expense planning
- Capital management
- Debt trap
- Timely payments
Knowing your current financial challenges will not only help you to speak more effectively but also give an idea of how shortlisted CFO outsourcing experts have conducted themselves in similar situations in the past. Indeed a great way to engage outsourced CFO services!
#2 Nail down skills and JD
Can you buy a feature-rich device at the showroom without telling the salesman about your needs and budget? Sometimes we can but most of us need help when making a complex purchase. Similarly, you need to define the CFO role before the hiring process begins. It is a primary step notwithstanding which level of CFO you want to hire for your organization.
Recapitulate your financial requirements and decide which areas of your business accounting the CFO will be responsible for and how much time will go into it. Nail down necessary skills while keeping an eye on your vision and challenges. Check whether the outsourced CFO can :
- Quickly analyze the financial health of a particular endeavor through a quick look at its financials
- Oversee implementation/development of company-wide P&L processes
- Draft a financial strategy for your organization
- Establish key financial processes to deliver business objectives
- Work with your financial databases and modern technologies effectively
Noting down the CFO skills can help you spot gaps in the skillset and expertise of shortlisted candidates. Put simply, coming up with a JD will support better decision-making.
#3 Check out expertise
Albert Einstein once said, “The only source of knowledge is experience.” That’s why it makes sense to hire an outsourced CFO with at least 10 years of experience. It would guarantee familiarity with a variety of financial challenges and quick solutions.
Check the reputation of your outsourced CFO services provider by looking at client testimonials and reviews. Speak with previous employers or clients to get familiar with work, leadership, and management style. Finsmart has been supporting organizations with outsourced CFO services for more than a decade now.
An experienced CFO will help you address all your financial intelligence needs and provide you with timely advice, reports, and metrics. He or she will be able to steer clear of business risks and capitalize on future business opportunities.
Learn more about outsourced payroll and CFO services in India
#4 Tech-savvy
This has to be one of the most important things to consider on your lookout for the best outsourced CFO services. Technology has simplified accounting as well as financial management. A CFO that is not only willing to embrace modern accounting technologies and collaboration practices but also takes on responsibility for leading it can grow into a valuable asset to your organization.
Make sure that your shortlisted CFO candidates are tech-savvy and already have a grip on technologies like Sage, QuickBooks, Tally, Salesforce, and SAP. That way, you can confirm data accuracy, minimize accounting errors, and guarantee financial health.
#5 Strategic mindset
Strategic thinking and a clear mindset helps with financial success, and when your CFO brings both to the table, it’s a major advantage. A strategic mindset helps CFOs create financial strategies critical for hitting business projections. By creating short and long-term financial action plans, a CFO ensures consistent growth.
Test the business and analytical acumen of your CFO candidates during interview and discussion sessions. Here are some questions that might help:
- How do you uncover financial opportunities and challenges for a business?
- How do you analyze diverse viewpoints and run research on what competitors are doing?
- What kind of strategy do you use to plan a roadmap to future-ready finance?
In short, consider strategic and analytical skills.
#6 Communication and collaboration
A reserved chief financial officer who works solo can stop the flow of ideas and disrupt established collaboration models. This is especially true if your CFO has been onboarded through outsourced CFO services.
Ask your potential CFOs whether they use modern communication and collaboration tools to keep everything streamlined and stay connected with the in-house team. An effective communicator and collaborator in a CFO’s role can:
- Keep meetings engaging and interactive
- Help non-finance team members gain clarity.
- Trigger conversations and promote collaboration
Effective cash flow management strategies for businesses
#7 Consider your culture
Another important point to consider while looking for the best outsourced CFO service for your business. Every company has its own financial and growth vision. Therefore, you should aim for a CFO who has worked in diverse business environments and is willing to align with your business goals.
While outsourcing a CFO for your organization, confirm if he or she will be good fit in the existing company culture or will ruffle things up the wrong way. Pondering the below questions will help:
- What kind of partner are you expecting to lead your finance management team?
- What kind of financial manager do you think is a cut-out for existing goals?
- What kind of values, habits, and traits are you anticipating for your outsourced CFO?
Keep in mind that a company’s culture is linked to its financial health, and your outsourced CFO service provider needs to understand that. Ask if they can implement the required changes with minimal disruption.
Hiring outsourced CFO services in India
Above are some useful tips and ideas to keep in mind while searching for the best outsourced CFO services for your organization. Hiring an offshore CFO can produce massive value when your goal is to improve your organization’s financial operations.
Of course, your outsourcing journey will be full of lessons and take some time, but we are certain that with patience and thorough research, you will come across the best talent for your business.
Got any queries to ask? Send them to info@finsmartaccounting.com and have them answered by our experts!
Check out our recent blogs and resources:
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Maanoj is Co-founder & Director of Growth Strategy & Alliance at Finsmart Accounting. He is an Outsourcing Expert, a People Champion, and a Dynamic Leader with strong Business Strategy and Scaling-up experience. He has incubated businesses, sold & exited ventures; helped build strong enterprises in very diversified verticals like Fintech, HR & Consulting spaces in various CXO capacities over the last 20 years.
