Kruze clients have worked with some of the top outsourced CFO services in Silicon Valley and beyond.
Read more about these top outsourced CFOs (we list them below) or learn about what to look for from a service provider.
Top 20 Outsourced CFOs
To help you take your startup’s financial management to the next level, we’ve compiled a list of the Top 20 Outsourced CFOs in the industry. These professionals bring a diverse range of experience and expertise that can tailor financial strategies to meet your startup’s unique needs.
Steve Bennet
Palo Alto, California
True Global Ventures, Bodega Partners, Rollbar, Xenio Systems, WaterSmart Software
Solange Bullukian
San Francisco Bay Area
Twist Bioscience, Agilent Technologies, Hewlett Packard
Adam Metzger
Brooklyn, New York
Seamless Payments, Harmony Labs, BetterPT, Civic Hall
Douglas Jendras
New Fairfield, Connecticut
AboveNet Communications Inc., Metromedia Fiber Network, MCI Telecommunications Corporation, IBM
Lea Dessi-Olive
San Francisco, California
Atomic, StyleSeat, Accenture Management Consulting, PNC
Jeremy Sanders
Los Angeles, California
UniZ Technology, Ideator, Sanders Advisors, Citizen Healthcare
James Jones
San Francisco Bay Area
Goldman Sachs, Accenture, Kana Software, Inc., Singularity University
Jay Goldberg
Northern California, Remote
Qualcomm, Peregrine Semi, Deutsche Bank, Lazard, Coca-Cola
Vito Palermo
San Francisco Bay Area
Secret Golf, Procket Networks, Extreme Networks, Bay Networks (formerly SynOptics), Metawave Communications, MeSoft, Kaazing, Scancafe, University of California, Mahindra Genze, Quantivo, Innova Dynamics, Her Universe, Pareto, SDN Central, Wiretap
Bernie Mahon
San Francisco
Chronosphere, Advano, Deep Space Industries, Morgan Stanley
Gene Domecus
Burlingame, CA
Macys.com, Bella Pictures, Rafter, Blurb, Peerspace, Freestyle VC
Deepak Gupta
San Francisco Bay Area (Silicon Valley)
Price.com, Centric Learning, PRYNT, UNYQ, Nitros
Nitin Mittal
New York, NY
Solera, Branded, Flow Commerce, RadioShack, The Royal Bank of Scotland, Credit Suisse
Jon Schwartz
Minneapolis, MN and Remote
Commons, Ridwell, BookNook, Edstruments, Charter School Growth Fund
David Dinerman
San Francisco Bay Area
Hapara, Inc., Probitas Partners, Grant Thornton, BigFix, Inc.,
Patrick Hoogendijk
Dallas, New York, Amsterdam, Miami
Wethos, Agora, Overproof, Bryzos, Kensu, Carketa, Tangelo, Spark, Toke
Diana Maichin
Bay Area (remote), Europe
Genentech, GE Ventures, Amgen, Codexis, Various institutional & corporate venture firms
Nym Raske
SF Bay Area / Miami / Remote
JPMorgan Chase, FOG Ventures, Truly Technologies, Elodie Games, Skyryse, Fisher Investments
Mark Sierra
Silicon Valley + Remote
Quixey, Sibly, Buysight, Multiple Stealth companies, Sonantic, SixApart/Vox, Fortify Software, Podshow/Mevio, Garage.com, Agile Software, SimpleStar/Photoshow, Packeteer
Devin Harris
Houston, Texas
General Electric (Corporate, Capital, Oil & Gas), SpeedCast, Anuvu, Brazos River South
What is an Outsourced CFO?
An outsourced CFO, or outsourced chief financial officer, is a financial expert who offers CFO services on a fractional, project, or contractual basis. This role is different from a full-time or interim CFO; it is more akin to a consultant but with the responsibilities and expertise of a traditional CFO.
Outsourced CFO services focus on specific tasks like financial projections, audits, and capital raises, depending on their qualifications and your startup’s needs. Different service providers specialize in specific industries or stages of startups, turnarounds and more.
Make sure you carefully vet anyone you speak with to make sure they are the right fit for what your startup needs.
Why Outsource CFO Services?
Many startups, particularly those in the Seed or Series A-C stages, find outsourced CFO services advantageous for several reasons:
- Expertise Without Overhead. You get the benefit of specialized financial knowledge without the operating costs of a full-time professional, such as salary, benefits, and bonuses. An outsourced CFO service allows you to cut costs without cutting corners on financial expertise. Finance leaders are some of the most expensive people to hire right now, so this is a great way to get advice without breaking the bank.
- Flexibility. Outsourced CFOs work on a flexible schedule, fitting your company’s specific challenges, goals, or project requirements. It means that the outsourced services can adapt as you scale, offering increased value as you grow. Of course, you need to make sure you are working with a provider who can scale with you.
- On Demand. With an outsourced service provider, founders can pull in the help they need when they need it. Startups should consider hiring strategic finance help at least one quarter before a new fundraising round to aid in projections, KPI preparation, and financial reporting. Their expertise and network could provide a leverage point during these critical phases.
Signs Your Startup Needs CFO Outsourced Services
If you’re still contemplating CFO outsourcing, here are a few signs that your startup might need one:
- The CEO is consumed with financial projections and reporting multiple times a day.
- Investors are demanding increasingly complex data on performance.
- The CEO and COO are deeply involved in multiple client contracts and sales negotiations.
- Your startup is mulling over going public within the next 12-18 months.
Usually by the time a startup is at the Series D, it will have an in-house finance leader who will have begun to build out a team, from staff accountants to FP&A leaders. However, prior to that, it’s totally normal to get part time help, even at the leadership level.
What Does an Outsourced CFO Do?
An outsourced CFO takes on various roles, specifically designed around your startup’s unique needs. Some of the tasks include:
- Managing financial reporting and monthly book closures
- Coordinating and providing advice on fundraising logistics
- Overseeing contract negotiations, like new leases or significant vendor contracts
- Strategic planning for short-term, mid-term, and long-term financial goals
- Updating existing investors with performance numbers and metrics
10 Outsourced CFO Services Startups Should Consider
Digging into more detail and going beyond the tasks we outlined above, startup founders should look for a number of essential services from their part-time finance leader. These include financial projections, cash/treasury management, fintech systems optimization, and important contract negotiation assistance.
- Managing the budgeting process. It’s not just setting up projections that you use to run the business - eventually running a budgeting process becomes a lot of work. This includes coordinating with your business unit leaders, understanding where the board of directors expects the company to go in the near future, reading the tea leaves on the financing market - this is a place for an outsourced CFO to shine, and possibly be the bad guy who has to tell your marketing leader that they can’t spend like a drunken sailor.
- Budget vs actuals. Every month it’s best practice to compare actual financial outcomes with initial budgets to gauge business performance. This analysis identifies areas requiring strategic shifts and checks the viability of your budget. Your finance leader can do the grunt work - and can also bring the important variances to your attention.
- Contract reviews. Major customer contracts - and vendor contracts like leases - can have an outsized impact on a startup’s financials. Get advice on customer contracts to minimize risks and optimize profit. These reviews are most effective when the CFO understands your business sector and target market.
- Financial presentations. As startups mature, their investors expect increasingly complex financial reporting presentations at the board level. Experienced finance leaders can take this off of the CEOs plate, although it’s always best that the CEO review what is getting presented in advance so that there are no surprises.
- Cash management. Startups that have a lot of cash can earn a yield that boosts their runway. You can learn more on our cash management and FDIC coverage page about how startups can safely earn cash on their VC dollars.
- Coordinating fundraising. While the founders should spearhead the actual investor relations and fundraising activities, a CFO can play a crucial role in streamlining and coordinating the entire fundraising process. They can prepare essential financial documents, create compelling pitch decks, and develop robust financial models to support your case.
- Tracking Key Performance Indicators (KPIs). One essential service an part-time CFO can offer is the systematic tracking and analysis of KPIs specific to your startup’s industry and stage of growth. This enables you to quickly gauge the effectiveness of your strategies, make data-driven decisions, and demonstrate your startup’s progress to investors.
- Sounding board for the CEO. Another often underestimated yet critical role that an outsourced CFO can play is acting as a strategic sounding board for the CEO or founder. Making high-stakes decisions in a startup environment can be stressful and complex. Having an experienced finance leader to consult with can provide an invaluable second opinion, not only in financial matters but also on broader business strategy, market positioning, and even team dynamics. Their seasoned perspective can help you weigh the risks and benefits of various courses of action, encouraging you to challenge your own assumptions and consider alternative strategies. Essentially, a good finance leader offers more than just financial expertise; they offer the kind of counsel that can help a CEO navigate the many challenges that come with scaling a startup.
- Optimizing the FinTech stack. Experienced finance professionals, who know your stage of business and the next, can be instrumental in setting up and fine-tuning financial technologies that will scale with your startup. From choosing the right accounting software to implementing advanced data analytics tools, the right partner ensures that your financial systems are robust, compliant, and agile enough to adapt to changing needs. They’ll assess existing processes and recommend optimizations that will automate workflows, improve data integrity, and provide real-time insights. By laying a strong foundation for financial technology, they can help you to scale efficiently and position your startup for long-term success.
- Strategic planning and long-term visioning. A great CFO is not just a numbers person; they can also be a vital partner in shaping the company’s strategic direction. Leveraging their deep understanding of your financials and market conditions, they can assist in crafting a comprehensive strategic plan that aligns with your long-term objectives. This includes scenario planning, assessing potential market opportunities and risks, and creating financial models that forecast various growth pathways. Their insights can help guide key decisions around product development, market expansion, and resource allocation, ensuring that every tactical choice feeds into a cohesive, sustainable growth strategy. By actively participating in strategic planning, they can become an integral part of your company’s future, helping you prepare for the opportunities and challenges that lie ahead.
Note - one thing we don’t think you can totally outsource is fundraising. VCs will want to meet with the CEO. While a finance person can help set up meetings, answer diligence questions and manage the process, they should not be the people running the meetings with VCs nor should they be the face of the company.
Should You Hire an Outsourced CFO or Controller?
Not every startup needs CFO level help; many can get the assistance they need by finding an outsourced Controller. Determining which financial role you need depends on your current needs and strategic objectives. If your startup needs strong oversight on daily financial operations, compliance, and detailed reporting, an outsourced Controller is likely the best fit. Controllers are skilled in ensuring financial accuracy and establishing a solid accounting framework, essential for early-stage companies focusing on building a robust financial base.
Conversely, if your startup is focusing on long-term financial strategy, raising capital, and managing investor relations, a CFO can provide the necessary strategic direction. CFOs are adept at high-level financial planning, guiding startups through growth and scaling phases with expertise in capital management and strategic decision-making.
For those considering outsourcing, it’s crucial to clearly identify the services and tasks you need help with. Outsourced CFO services can offer a tailored approach to meet your specific financial challenges, whether it’s strategic planning or handling complex financial operations.
To dive deeper into the distinct roles and find the right solution for your startup, visit our CFO vs Controller page. This resource provides a comprehensive comparison to help you make an informed decision, ensuring your startup’s financial needs are met effectively. Whether you require strategic financial insights or meticulous accounting oversight, Kruze Consulting is here to support your journey.
Choosing Your Outsourced CFO
When selecting an external CFO, consider the following:
- Industry Specialization. Some startups, like those in biotechnology, require specialized financial strategy. In such cases, look for a chief financial officer outsource expert who understands your industry’s unique financial complexities.
- Bandwidth. Part time finance leaders are often in high demand, so ensure your chosen professional has the time and attention to dedicate to your startup’s financial success.
- Compatibility. Your outsourced CFO should complement your management style. For instance, if you’re not detail-oriented, your CFO should be comfortable diving into the nitty-gritty of financial management.
Remote CFO Services: No Office Visit Required
One thing you probably don’t need to worry about when finding an outsourced finance leader is co-location. The need for a CFO to be physically present in your office is becoming increasingly obsolete. At Kruze Consulting, we offer remote CFO services that provide the same level of expertise and strategic financial guidance as an in-house CFO, but with the added convenience and flexibility of working remotely. Our team leverages cutting-edge cloud accounting software and communication tools to ensure seamless collaboration and real-time financial insights, regardless of your location. And the best finance leaders won’t need to be in person in your office - although you may want to have them visit in person for strategy sessions and other important moment. So if you are based in Santa Monica or Des Moines, you probably don’t have to worry as much about finding someone who can commute to you.
Final Thoughts
Outsourcing your CFO function offers a balanced approach to achieving expert financial oversight without the hefty price tag of a full-time executive. Especially for startups in fast-paced growth or transitional phases, CFO outsourcing services deliver invaluable insights to set you on the path to success.
If you have questions about outsourced CFOs or need additional resources on startup accounting and finance, feel free to reach out to us. Also, check out our YouTube channel and blog for more insights into startup finance, HR, and taxes.
Unlock your startup’s potential today with the strategic advantage of outsourced CFO services.