Top 20 Outsourced CFO Services

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.

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.

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. 

1. 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.
2. 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.
3. 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.
4. 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. 
5. 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. 
6. 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.
7. 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.
8. 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.
9. 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.
10. 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.

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.