From small, local businesses to large corporations, every organization is under pressure to increase revenue, reduce costs and improve operational efficiency to support sustained growth. A deep understanding of the company's financial position is the first step to making informed decisions that make it possible to achieve these goals.
CFO advisory services can provide organizations with insight, guidance and expertise to support in-house teams or serve as a fully outsourced team. This eliminates the high cost and lengthy process of hiring, onboarding and retaining additional employees when professionals with financial and accounting expertise are in such high demand. Client accounting services can also be added to the equation to make sure accounting tasks are completed and CFO advisory services professionals are working with accurate, updated information.
What are CFO advisory services?
Typically offered by accounting and consulting firms, CFO advisory services focus on helping companies make informed decisions, improve financial management and cash flow, reduce risk, increase shareholder value and meet all regulatory standards. These strategic services are customized to the specific needs, challenges, goals and compliance requirements of each organization and its financial leadership.
For example, a CFO advisory services consultant might sit down with a senior executive to discuss issues with cash flow, profitability, process bottlenecks, inaccurate forecasts, etc. Once the problems have been identified, the consultant can dig deeper to uncover the root cause of each issue and, more importantly, implement a solution.
Services may include fractional or interim CFO services and a variety of strategic initiatives, such as financial planning and analysis, cash flow optimization, performance improvement, financial modeling, budgeting, forecasting, process optimization, tax compliance, audit/IPO readiness, transaction readiness and support, and KPI assessment and analysis, as well as merger and acquisition services such as due diligence, quality of earnings and integration planning.
Adding day-to-day accounting support
In many cases, CFO advisory services will recommend CAS, providing organizations with day-to-day support to ensure all accounting tasks are completed correctly and on time by qualified professionals. All or a portion of accounting functions can be outsourced to a third-party and performed remotely, using secure, cloud-based accounting software to enter data, monitor activity, and generate reports and statements.
Tasks outsourced to a CAS provider often include bookkeeping, accounts payable and receivable management, payroll processing, tax preparation and compliance, controller services, audit response, financial reporting, and process improvement. As with CFO advisory services, CAS can be tailored to the unique needs and requirements of each organization.
Why CFO advisory services and CAS are a winning combination
While CAS focuses on routine tasks that can drain time and resources but are critical to an organization's financial operations, CFO advisory services are more strategic in nature. For example, CAS can take steps to ensure financial data is accurate, complete and current. CFO advisory services can then analyze your data, extract relevant insights and make recommendations that enable leadership to make decisions with confidence and clarity.
Think of CFO advisory services and CAS providers as separate groups of musicians in an orchestra. When playing in isolation, they can make beautiful music. Bring them together and you have the potential to perform a truly magical symphony.
While both disciplines deliver tremendous value separately, close collaboration between a CFO advisory services team and CAS team can help an organization create a strong foundation for success. CFO advisory professionals can identify areas of need and recommend solutions based upon their deep knowledge of CAS capabilities and seamlessly integrate those solutions with existing processes.
By implementing best practices, developing and executing sound financial strategies, and improving decision-making, CFO advisory services provide businesses with the insights and ability to drive growth and profitability.
Organizations can leverage the collective expertise and resources of a CFO advisory services team who work together with a common goal to maximize the financial performance of the company.
