Personally speaking, and I’m a bit biased since I am an Outsource CFO, I think every company could benefit from such a service. With that said, it’s very important to pick the right Outsource CFO.
Here are two scenarios that I have came across in my career.
1. CPA Firm Offering CFO Services
I have came across a lot of companies that hired their CPAs (doing taxes) as their CFO and ended up regretting it. This is no bash against the CPA, but to be a CFO requires a different way of thinking. By nature, a CPA is trained to be historically oriented with taxes and audits. Wherein, a CFO is focus on the present to the future – cash flow, strategic deployment of capital, growth, etc
2. Not the Right Fit
A few of my clients have came across CFOs who just aren’t the right fit – personality, thinking, expertise, and so on. Again, this isn’t a bash on either party, but picking the right CFO is just as important as having the right one. For example, if I come across a client that likes to shoot from the hips, take calculated risk, and move at lightspeed – that’s a pretty good mesh for my style. Since I’m more methodical and detail orientated, we compliment each other really well.
But if I come across a client who doesn’t want to be involved in the business, doesn’t want to take risk, and/or otherwise isn’t a good fit. I just don’t take them as clients.
With all of this said, if you find the right CFO partner – it can absolutely take your business to the next level