But wait a minute, aren’t CFOs reserved for bigger businesses that generate lots of revenue? Not necessarily. You see, CFOs can contribute lots of value to any business, no matter its size. The problem is, especially for a startup, that hiring a CFO can come at a significant expense. This is generally not helpful when you want to limit your expenses and increase your profit.
That’s where outsourced CFO services come in. They can provide you with full-time or part-time CFO services, often at a lower cost compared to hiring one in-house. With that in mind, let’s look at the top 10 CFO services for startups.
What is an outsourced CFO?
Before looking at the top 10 CFO services for startups, however, it’s important that we recap what an outsourced CFO is and what they do. Just like a normal CFO would, an outsourced CFO provides financial, business, and accounting services and advice to your startup. So, in other words, an outsourced CFO does exactly the same thing as a full-time CFO.
The only difference is that, with an outsourced CFO, you outsource these services which means that the person in charge of your startup’s finances is not a full-time employee of your startup. Generally, outsourced CFOs work on a contractual basis, and you can use them full-time, part-time, or any other time you need the services of a CFO.
What do outsourced CFOs do?
Considering that outsourced CFOs have the same functions as full-time CFOs, they perform a wide range of tasks in respect of your startup’s finances and operations. As such, their key functions include:
Budgeting and planning
Outsourced CFOs can help you create a budget and plan your finances. In this way, you’ll know that your startup’s finances are always under control, and you’ll know how much you can spend, what to spend it on, and when you’ll be able to spend it.
Simply put, financial projections help you see into the future. In other words, they help you see your revenue potential and how your company might perform both over the short-term and long term.
Cash flow management
One of the biggest challenges for startups is sufficient cash flow. In simple terms, without proper cash flow, you’ll struggle to keep your startup afloat. Here, outsourced CFOs can help you manage your cash flow and ensure that you always have the necessary capital available to pay your expenses or invest in services for your startup.
Financial reports like balance sheets or profit and loss or income statements show you the financial health of your startup at a glance. In addition, these reports can help you when you need to demonstrate your finances to investors or when you need funding.
An outsourced CFO can be extremely valuable when you need to make presentations to, for instance, investors or at board meetings. Moreover, because they have the necessary skills and experience, they will be able to answer any questions that any stakeholders in your start-up might have.
Why does your startup need an outsourced CFO?
Now that we’ve recapped what outsourced CFOs are and what they do, the question is: Why does your startup need an outsourced CFO? Simply put, they’re experts at what they do. In contrast, you’re the expert at running your business.
This means you should consider using an outsourced CFO if you’re taking up too much valuable time performing the tasks they would usually do instead of running your business. Furthermore, their skills, knowledge, and insights can help you manage your startup’s finances more effectively, curb your expenses, and plan better. Ultimately, this allows you to grow your startup faster.
Top 10 CFO Services for Startups
Now that you’ve seen what an outsourced CFO is and why you need one for your startup, let’s look at the top 10 CFO services for startups. Hopefully, this will guide you in finding the right provider for your specific needs and requirements.
Paro offers financial services and accounting solutions to businesses of all sizes. These services include financial planning and analysis, accounting and bookkeeping services, and strategic advisory and CFO services.
Its CFO services include the development of effective business strategies, business operations, corporate development, and it has a range of start-up services aimed specifically at new businesses.
Zeni offers a full range of services which includes bookkeeping, invoicing, reporting, and the subject of this post, CFO services. Its range of CFO services includes financial analysis and projections, budgeting, board meeting presentations, and scenario modelling. The service promises to unlock valuable insights into your business finances by using AI-powered services.
Pilot offers a range of CFO services that includes annual budgeting and forecasting, fundraising strategy and support, and monthly engagement that entail ongoing CFO support.
The platform promises that the CFO services can help startups review their financial health and processes, maintain cash flow and conduct strategic analysis and forecasting. In addition, the platform also offers bookkeeping, tax, and R&D credit services.
Aimed more at small businesses and sole traders, EasyBooks focuses more on bookkeeping than CFO services. It does, however, in a sense provide CFO services through its digital bookkeeping app that gives you access to a wealth of financial reports that aim to make forecasting, projections, and managing your business’s finances easier.
Ignitespot promises to be the complete financial management solution for startups. It offers a range of services from accounting, bookkeeping, tax preparation, and CFO services. Its range of CFO services includes forecasting and projections, business performance monitoring and budgeting, cost reductions, staffing costs optimisation, debt management, financial reporting, and more.
GrowthForce offers a complete suite of services that can help you grow your business, including bookkeeping, management accounting, financial controller services, and advisory services.
Its range of CFO services includes the setting of business goals and overcoming business challenges, the development of strategies and implementation of processes to help your business grow, and financial forecasting.
4. Pulse Accounting
Aimed more at small businesses like freelancers and contractors, Pulse Accounting offers a range of accountancy services that include bookkeeping, payroll management, tax management, and more.
It does, to a certain extent, provide CFO services in that it allows you to make cash flow projections and view your actual data alongside these projections. It also gives you the ability to monitor your cash flow based on different periods and manage your expenses more effectively.
3. Preferred CFO
Preferred CFO focuses on offering outsourced CFO services to businesses. As such, the platform provides CFO consulting services, interim CFOs, and fractional outsourced CFOs.
With all these services, you’ll be able to optimise your cash flow, get financial forecasts, develop financial strategies, and assistance when you want to raise capital for your startup.
2. Level 10 CFO
Level 10 CFO offers a wealth of services that can help you optimise your startup’s performance. Its services include strategic planning, cash flow management, compliance, advisory services, reporting, financial analysis, and more.
It also gives you the ability to tailor their service model to your exact needs and requirements and revisit this model regularly to ensure that it always meets your evolving business needs.
1. Accountancy Cloud
At Accountancy Cloud, we provide you with expert CFO support without the need for hiring a full-time CFO. As such, we can assist you with developing financial strategies that maximise your cash flow and improve your profitability. We also give you access to extensive financial reports that allows you and the CFO to control your finances with accurate forecasts and budgets.
Ultimately, our CFO offering allows you to save time and effort by placing your startup’s financial responsibilities and management in the hands of an expert.
As a startup, having a CFO can be an invaluable tool that can help you grow your business, manage your cash flow, and develop the measures and strategies to make your business more profitable. Hopefully, this post helped illustrate the top 10 CFO services for start-ups and will make it easier for you to find the right service for your specific needs and requirements.
So, if you need to decide on the right CFO service for your startup, why not consider Accountancy Cloud. It provides you with the full strategic finance support your business needs without having a seasoned CFO on your payroll. As a result, you’ll be able to work with an expert financial officer and reap the benefits that these professionals bring to your startup.
To learn more about our CFO services and how they can help your business, contact us today to talk to an expert.
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