Outsourced CFO
Why hiring an outsourced CFO (OCFO) makes more sense?
Let's take the example of a Malaysian F&B (Food and Beverage) startup, TastyBites, located in Penang.
While they have a knack for creating delicious and innovative dishes, they find it challenging to keep track of their finances efficiently.
Employing a full-time CFO would be costly, especially in the initial phases.
By outsourcing their CFO role, they gain access to high-quality financial expertise without incurring excessive overhead expenses.
This helps them budget, track expenses, and focus on serving tasty meals, growing in the competitive F&B industry.
What exactly an OCFO do?
Think of an OCFO as a business co-pilot. We tailor our support based on what your company needs and its size.
Startups and small businesses often have different priorities. Smaller firms might be all about growth, while bigger ones have other concerns such as expansion.
Our services match your business goals. For startups aiming to get funding, our OCFO offers expert advice, guide you and manage the process throughout.
Do an SME needs an OCFO?
An OCFO isn’t just a service provider; we are like a business advisor or financial coach for your company.
We use analysis and forecasting to develop strategies and guide your business forward, especially if your business or start up is looking to grow or scale. Whether you need one depends on your business’s specific needs and goals.
Here are a few examples of criteria whereby you may need some level of CFO support:
Growth/Exit Strategies
An OCFO helps with essential paperwork like business strategies and forecasts, whether you're preparing to sell the company or seeking funding for expansion. OCFO expertise can improve lending terms or boost the sale price.
Cash Flow Management
An OCFO analyses your costs and revenues, devising plans to overcome financial hurdles and enhance company performance.
Time-saving
OCFO takes charge of financial strategy, budgeting, cash flow management, and liaising with stakeholders, saving you valuable time and ensuring preparedness for financial challenges.
Forecasting
By examining present and future capabilities, OCFO provides financial projections with best estimates, aiding decision-making and goal-setting.
What are the differences between accountant, financial controller and OCFO?
Accountant
At the basic level, accountants serve as bookkeepers of a business, always sure to maintain the accuracy of financial documents and ensuring proper reconciliation.
They also perform basic accounting services such as compliance, tax returns and managing accounts.
Financial controller
The financial controller is the head of a company’s accounting department, performing several duties depending on the company, such as implementing tactics to strengthen the company’s accounting practice and procedures.
OCFO
Whilst controllers and accountants will be mostly looking at historical data, the CFO has to be more forward thinking, and instead be focused on what will be coming.
They are the finance team leader and play a significant role in planning for the business’s future, optimizing processes, giving advice to help stakeholders/business owners about important company decisions based on projections and other financial analysis.
How is pricing determined for this service?
The cost of OCFO services varies based on factors like the complexity of financial tasks, the size of the business, and the extent of services needed.
Prices start at RM1,000 per month or on a project basis, making it a more cost-effective option than hiring a full-time CFO.