When It’s More Profitable to Hire a CFO on an Outsourced Basis Rather Than In-House - FChain

Preview:
Find out when it’s easier for an entrepreneur to “buy” 10 hours of a CFO per month than to maintain a full-time director. Many entrepreneurs think that “accounting is enough.” But it is often the lack of a financial system that destroys profits. Here are 5 signs that you need a CFO—but not full-time.

 

In our previous article, we discussed the value of financial outsourcing (What is financial outsourcing and why small and medium businesses need it? – FChain). And this naturally leads us to a topic that many entrepreneurs think about—but rarely discuss aloud. For many, the term “Chief Financial Officer” sounds too “big,” too expensive, and too untimely. It seems like a role for corporations, not small businesses.

But the reality is different: small and medium businesses often need a CFO, but not in-house.

Why? Because a business needs the competence of a CFO, but not their full-time presence.

1. When you feel the company is earning, but profit “disappears”
   The most common scenario:
   Sales grow → turnover increases → more clients → but money is still tight.

The reason is almost always the same: there’s no financial management, only accounting.

• An accountant records facts.
• A CFO manages money.

An outsourced CFO can help to:

• Identify actual costs;
• Find cash leaks;
• Make forecasts;
• Build a control system;
• Set up management reporting.

2. When you can’t afford a strong in-house CFO
   A good CFO is expensive.
   Top-level specialists cost as much as top management, and SMBs cannot compete with large companies on salaries.

Outsourcing solves this problem: for a relatively small amount, you gain access to expertise that the business otherwise couldn’t afford.

This is ideal for companies with turnover from 300,000 to 5,000,000 AZN—where a CFO is needed, but a full-time position is not justified.

3. When your company lacks a financial system
   A CFO isn’t just for reports for the sake of reporting.
   They build a system:

• Budgeting
• Profit analysis by business line
• Payment calendar
• Accounts receivable control
• Reports for the owner
• Financial regulations
• Cost management recommendations

Outsourced CFO services can implement this faster and cheaper than an in-house specialist.

4. When the business is preparing to grow
   Expansion is a risky moment.
   Many companies fail at this stage:

• Opening a new branch
• Launching a partner outlet
• Making large purchases
• Launching new products

This often leads to cash gaps, debts, and blockages.
An outsourced CFO helps calculate risks in advance and prepares the business for growth.

5. When the owner wants to make data-driven decisions
   Many decisions are made “by feeling”:
   It seems profitable, it seems the client is good, it seems expansion is worthwhile.

A CFO turns “seems” into numbers.
And accuracy can save tens of thousands.

An outsourced CFO is profitable when a company wants to grow but isn’t ready to hire an expensive full-time specialist.

It’s a way to gain corporate-level expertise at a reasonable cost—while building a real financial system.