About OCFO

For ambitious SMEs, Outsourced CFO provides integrity and professional excellence in financial consulting. Succeeding through uncompromising quality and industry thought leadership, our aim is to help clients rethink, automate and scale their companies in the pursuit of business eminence.

The financial function is at the heart of every business. Sound financial planning and management enables businesses to grow and flourish, while the lack thereof is always a fundamental reason for failure. Being entrepreneurs ourselves, we understand the significant role that finances plays in the success of a business.

As new and younger companies cannot afford to appoint an appropriately qualified professional to navigate this facet of their business, but also cannot afford to be without the technical financial skills that one could offer, Outsourced CFO offers the solution – the business services of a passionate OCFO for an amount of hours per month tailored to your needs.

Outsourced CFO is the embodiment of their passion and purpose in the fields of technology, finance and entrepreneurship. What an incredible journey – and the best is yet to come.

Hundreds of ambitious management teams use fractional CFO services to rapidly scale their companies

Imagine having a go-to finance expert that could help you solve all of your company’s most challenging financial problems. Now you can take your business to the next level with our flagship CFO-as-a-service offering.

The path from your first million to beyond the 100 million mark is long and challenging. Simplify it with access to the high-level financial and strategic insights that only a CFO can bring to the table – without having to make a full-time hire.

CFO services packages for my exact needs.

Our CFO services offering is split into three distinct packages to meet your business right where it is, as you lead your team towards industry-leading growth, profitability and cash flow.

Performance

For funded startups, the Performance Package offers your first access to top tier finance skills to help kickstart your company. Focusing on the establishment of financial infrastructure, basic reporting and compliance, and initial cash flow management practices, your new finance wingman or -woman will cast light on the numbers through your early years.

Growth

For companies entering the scale-up phase (read approximately 10 to 25 people), the Growth Package offers the right amount of CFO support to help take your business to the next level. Focusing on more advanced financial reporting, more detailed cash flow forecasting and more in-depth value maximizing approaches, your new part-time CFO will help lessen the complexity burden of your early growth phases.

Eminence

For already successful companies looking for further scale, our visionary CFOs help you to further unlock your business’ true value. Advanced financial reporting to boards and shareholders, in-depth cash flow management and forecasting, detailed risk management, advanced KPI reporting and best-in-class financial strategies all translate into industry-leading growth, profitability and cash flow. A dedicated CFO for a day per week can change growth trajectories.

Fundraising Preparation Packages

Ready to start fundraising?

Raising finance? Getting the process right the first time can save countless executive hours. Convert a Growth Package into a Fundraising Prep Growth Package over 6 months for smaller companies to drive first-time raises up to $1m seed or series A rounds.

Later-stage fundraising? Convert an Eminence Package into a Fundraising Prep Eminence Package over 6 months for larger or more complex organizations raising bigger rounds.

Our fundraising preparation process and support has unlocked tens of millions of dollars, Rands, Pounds and Euros for scaling entrepreneurial companies.

Our CFO Services

Get access to the right financial direction for your growing business.

All the power of having a CFO on board, backed by a large team of professionals

Financial Gap Analysis

Start at the beginning – the Financial Gap Analysis is a deep-dive into company finances performed by a CFO. It gives you in-depth insight into the risks and opportunities within your current finance function, as well a strategy to approach them to maximize company value.  

Cash Flow Budgeting and Management

Cash flow is the lifeblood of any company. As founders, you need to have a deep understanding of cash flow. We utilize top tools and approaches to help you plan and forecast business cash flow.

Financial Decision-Making

The ongoing financial decisions that are part of operating a business have an impact on your resources and success. Make the right calls with the help of a part-time CFO who can make meaning of the numbers.

Profit Maximization and Dividends

We love helping shareholders get a better return for the risk they took when they started or invested in a business. Deploy some of the tools and tactics that maximize profit and make sure that growing recurring dividends are built into standard operating procedures.

Risk Mitigation and Internal Controls

Risk is an inherent part of doing business. Value is created by identifying and mitigating risk. Manage the risk factors in your company downwards with a strong control environment, risk registers and more.

Post-Investment Financial Management

Where VCs or external funders are concerned, your CFO can act as post-investment financial manager. Maximizing peace of mind and value for all stakeholders.

Fundraising Services

Seed round? Series A? Series B? Now you’re talking our language. Make your fundraising drive bulletproof with various fundraising support services for entrepreneurial companies.

Financial Forecasts and Projections

Strong financial models showcase a clear strategy for future growth as well as a thorough understanding of your business. Get the confidence to wow your next financier.

Business Valuations

The value of a business needs to be determined when shares change hands. Whether you are looking to issue new shares to an investor, buy out a shareholder or sell the company – an independent valuation report helps you determine the right price tag.

Implementation of Management Accounts

With ever-advancing stakeholders, you need to level up your management reporting. Create clear dashboards, set and track key KPI’s, and level up the quality of your board and shareholder reporting.

Accounting and Audit Support

Month-end closes, audit preparation sprints and dealing with auditors push your finance team into the red at key intervals during the year. Add additional capacity to your accounting efforts to make those deadlines every time without burning out your team.

Business Analysis and Cost Structuring

Maximize revenue by focusing on low friction revenue streams. Minimize cost by carefully pruning expenses. Identify and double down on the most profitable areas of your business to achieve outsized profit results.

Working Capital Cycle Improvements

Decrease debtors days. Increase creditors days. Decrease inventory days. These three levers help you generate and keep more cash in the business at your current turnover and profit mark, decreasing dependency on operational capital.

Financial Technology and Automation

Recent technological advances enable small and mid-sized companies to run their finances with the same depth of insight previously only reserved for large corporates. Deploy the latest financial technology in your business.

Entrepreneurship Programmes

Many corporates, NGOs and venture builders have mandates to support entrepreneurship development. Our fundraising and finance accelerator programs help entrepreneurs to build great companies at scale.

The Nuts and Bolts of a Virtual CFO

Many business owners often struggle to keep up when their business is scaling faster than expected. Your business becomes more complex as you add more equipment, employees, suppliers, vendors, contracts, and other components to the business. If your growth has complicated things to the point that a bookkeeper alone doesn’t feel like a sufficient financial solution, it might be time to hire a virtual CFO.

WHAT IS A VIRTUAL CFO?

Every business can benefit from dedicated financial management expertise, but very few small businesses have the means to hire someone full-time—particularly in the lean early years. Unfortunately, it’s those first few years when a company is just starting up that establishing good habits with managing financial resources is so important, and, over time can even make or break a business.

Hiring a virtual CFO is an affordable option for business owners who recognize the need for a financial expert with small business experience. Virtual CFOs provide top-level advice just when you need it, offering incredible value and cost savings to companies focused on growth and long-term success.

KEY BENEFITS OF A VIRTUAL CFO

  1. High-level decision making  - A virtual CFO can analyze your company finances and provide expert advice to help you make more informed, strategic decisions for ongoing profitability. That senior level financial oversight can help you understand any risks or weak spots, identify opportunities, and create a realistic and actionable business plan that steers the company precisely where you want it to go.
  2. Raising business capital - Finding access to funding is important when it’s time to scale your business, expand operations, launch a new product or service, or invest in a new joint venture. A virtual CFO can suggest the best ways to raise funds, whether that might be seeking venture capital, business loans, industry grants, or crowdfunding. A virtual CFO can also help fine tune your budget to discover ways to cut costs and spend money more wisely.
  3. Managing risk - Your business is an asset that needs protection from any potential risk that may threaten its ongoing success. A fire or flood, cyber attack, or employee theft can all cause long-term damage if you don’t take steps to protect your business. A virtual CFO can undertake a risk assessment and ensure you are investing wisely, have appropriate insurance and that your sensitive data, equipment and inventory are secure.
  4. Facilitating change - When a business is in a transition period, it’s valuable to have a part time senior-level manager overseeing the numbers to measure and assess long and short term business performance. If the business is in flux and finds itself in a negative cash-flow position, your virtual CFO can quickly help you determine the key factors and take immediate action to correct.
  5. A custom fit for your business - When you hire a virtual CFO, you decide how often their services are required and only pay for the services you need. Hiring a financial expert on contract rather is a cost-effective solution for businesses that only need part time support.

THE ONBOARDING PROCESS

Getting a virtual CFO onboarded, systems in place, and everyone up-to-speed often takes three to four months. A weekly meeting cadence is customary for this period. Some of the common activities accomplished during this time are:

  1. Goal Setting –
    • Your provider should start by understanding your short and long-term goals. Your goals help determine the information you’ll need to hit the milestones en route to achieving them. Your information requirements, in turn, inform the technology, team, and process needed to generate it.
  2. Report Design –
    • Your provider should be able to present reports which match the way you interpret data. Some owners digest visual data better and will benefit from more charts and graphs. Others are more numbers-data oriented and can consume reports with numerical data only. The service provider will highlight the few key metrics that you need to be watching now and evolve those as your business challenges and opportunities change.
  3. Technology Recommendations –
    • Your provider may see that your system would work more efficiently with new software with a balance of price, performance, security, and stability.
  4. Rebuild Balance Sheet –
    • After some analysis, the provider may need to rework your balance sheet to get a more accurate picture of financial reality.
  5. Build or Enhance Financial Processes –
    • One benefit of hiring a virtual CFO service provider is that you are not only getting their expertise, but you can benefit by borrowing from their knowledge of processes they’ve built or used in other businesses. This onboarding time can be used for restructuring your processes for better productivity.
  6. Roadmap –
    • The Virtual CFO service should be able to give you a 90 to 120 day roadmap of everything that will occur in this time period. This roadmap is a crucial first piece in the engagement with the service provider.

Is a Virtual CFO your Company’s Solution?

The term “Virtual CFO” is becoming more and more something we hear on a regular basis. Since COVID-19 hit the world, startups and corporates were forced to find solutions to run leaner than ever before. Most companies were under pressure that forced management’s hand to make cuts to staff and outsource where possible, and this has led to a trend of hiring virtual CFO services over the more traditional in-house full-time CFO.

You, your board and investors are probably asking some questions like:

  • How do we run on as little executive overhead as possible without missing out on making the right decisions?
  • What services do virtual CFOs offer and what will we need to find elsewhere?
  • How does working with a virtual CFO actually happen? 
  • How often will they be available? 
  • How will they deliver reports?
  • How much do part-time CFOs cost in 2022?
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What to expect from a CFO always?

  • To identify and manage the accounting team to produce reliable data and interpret the results, providing insight to help steer the ship toward your stated goals. The result is that you know exactly where, when, and how to focus your team and inform your stakeholders.
  • Providing a much-needed sounding board, coach, or guide. Look for a seasoned veteran who you can trust, not merely someone to fill a role. In the end, you’ll have a team member who knows your business and can help hold you accountable as you work to reach clearly-defined goals.
  • Positioning the finance function as a competitive advantage. An experienced CFO can help you cut waste, deploy cash efficiently, and find opportunities for greater production or expansion. With their help, you can be in a position to step ahead of the other organizations in your niche.

What is a virtual CFO?

  • It’s a way for small businesses to get CFO support that they wouldn’t have been able to afford previously.
  • Small businesses that hire a Virtual CFO get access to an experienced financial professional at a fraction of the cost of a full-time CFO. The services will differ from firm to firm, but usually a Virtual CFO will:
  • Handle all the duties of a traditional CFO, but work remotely and on a part-time basis.
  • Monitor the financial health and well-being of the business, usually with cloud technology.
  • Offer financial insight and guidance on all company decisions and issues.
  • Provide back-office functions such as managing accounts ledgers, depending on the client and their needs.
  • Identify key metrics and map out reporting to monitor
  • Interpret financial results on a regular basis
  • Manage annual budgeting process, development of annual strategy
  • Cash management & planning
  • Strategic planning

Virtual CFO services usually include:

  • Fundraising –
    • Virtual CFOs may create the financial story and can do some light pitching, but don’t expect them to spend six months on planes pitching VCs or banks all over the country.
  • Manage finance-related IT systems –
    • Don’t expect the virtual CFO to manage IT staff, company network, internet access, security, or CRM/ERP systems.
  • Participate in board meetings –
    • Virtual CFOs may prep and coach the CEO and can be requested for a presence in meetings.
  • Assistance with vision casting and strategic goal creation
  • Financial planning, which could include:
    • Cash flow management and forecasting
    • Scenario modeling
    • Opportunity analysis and budgeting
  • Financial statement preparation, reporting, and evaluation
  • Financial risk management, which might involve:
    • Cost-benefit mapping
    • Contingency planning
  • Cost management, including:
    • Productivity and talent assessments and recommendations
    • Supply chain reviews and insights
    • Capital-investment analysis and due diligence
  • Opportunity identification
  • Funding evaluation and administration
  • Debt reduction or management
  • Organizational transformation

Virtual CFO services usually don’t include:

Keep in mind that some virtual CFO services group CFO-level insights with bookkeeping and controller services, essentially delivering an outsourced finance department. If your provider offers CFO services as a stand-alone option, remember that you will not be receiving:

  • Shouldering burden of all things legal
  • Managing HR/Admin (benefits, insurance, hiring/firing of non-finance staff)
  • Daily, in-person participation with executive management team
  • One-stop for all investor relations
  • Optimized workflow 
  • Transaction entry & classification (recall the adage: garbage-in, garbage-out)
  • Accounts receivable
  • Accounts payable
  • Payroll
  • Bank account reconciliation
  • CPA support for year-end tax and audit
  • Financial control implementation and oversight

Advantages for small businesses

Having access to a Virtual CFO can be a big benefit for a small business. Most of them can’t afford an experienced, knowledgeable CFO on a full-time basis and may never consider hiring one.

That’s a problem, because many small businesses fail within the first three years. Reasons include failure to set themselves apart from the competition, and an inability to find a profitable business model. With an accounting professional acting as their Virtual CFO, they could keep their financial goals and realities clearly in sight.

A Virtual CFO is an affordable alternative to hiring a full-time CFO and can make a big difference to a small business, by:

  • Creating budgets and forecasts.
  • Pinpointing problem spending by highlighting trends in the market.
  • Validating or discouraging business decisions with financial well-being in mind.
  • These are abilities that the vast majority of business owners don’t possess – but they often need them in order to succeed.

Does My Business Need a Virtual CFO?

Now that you understand what a virtual CFO is and what some of the benefits of hiring one are, the next question you’re naturally asking yourself is, is it the right solution for me? Well, the first thing to know is that a virtual CFO is not a good solution for all businesses. Some businesses simply don’t yet need high-level strategic advice. Another scenario where a virtual CFO may not offer value is when a company’s finances are not yet in order. If that’s your situation, take care of that first by engaging an outsourced accountant to organize your accounts and give you a clear and stable understanding of your financials.

Are You Getting Enough Value From Your CFO?

Are You Getting Enough Value From Your CFO?

Let’s face it: A CFO is one of the most expensive positions in a company. There is a huge difference between an average CFO and an outstanding CFO. As a starting point, a CFO would offer reporting and business support but what you really need is for a CFO to be a driving force behind the company’s strategy. Here’s the big question: Are you getting enough value from your CFO? 

Is your company benefiting from this role and is this position taking ownership of the company’s finances and success like any other executive at your company would? Does this individual lighten your load as the company leader, allowing you to focus on customers, business and product development? Are they helping your business grow and maintain both speed and velocity in that growth? Here are five things to ensure that you’re getting the most value from your CFO: 

  • Ownership of Cash Flow –

Your CFO must take ultimate ownership of the management of the cash flow of the company. Make sure that you have cashflow coming in from your operations. It is also important to receive a short term forecast (weekly, monthly) but also a long term forecast in order to look a year into the future to see if and when your business might run into trouble. The CFO must own the process of cash flow, both micro and macro for the company as well as give guidance on how to maximise cash flow coming in and minimise the risk of running out of cash.

  • Provide Accurate, Simple and Timely Reporting –

Your CFO is responsible for a company’s past and present financial position, and the role is an integral part of a company’s financial future. It seems obvious, but many companies falter here, especially with the timely aspect of reporting. It is important for a founder to know what type of capital investments are approaching after a large customer payment is received so the cash can be allocated strategically. Reporting to management should also be done in the most simplest way to easily digest data without disrupting their ability to manage. 

  • Deliver Actionable Insight –

Actionable insight gives the business owner and CFO peace of mind to make strategic, well thought-out decisions. These decisions can drive positive business outcomes because the insights were derived straight from your customers.In order to deliver on a company’s execution strategy, especially when it’s a start-up or high-growth company,  reporting is essential in order to provide actionable insight. This is meaningful actions that can be taken from analyzing any type of raw data and the result provides enough data for organizations to make a well-informed decision. By doing so, the CFO will identify areas where you can create processes and policies for improvement which include both a look at historical performance, as well as future predicted performance. 

  • Act as a Strategic Partner –

Whether you have a part time CFO or a full-time CFO, they are a member of your executive team and should assist in the strategic process of the company. Moreover, as a member of the executive team, they should be taking ownership such as: 

  • Development of company strategy and execution;
  • Gathering and analyzing the data to support fact-based strategies;
  • Continually handling transformations within the economy and technology
    Optimise Performance –

They will help the company to identify areas of improvement, build the necessary financial systems, integrate them and will help drive development in those areas. Most importantly, they will take ownership of optimising performance. The CFO should think about developing more effective operational strategies for adding value and managing operational risk throughout your organization. It is also important that the CFO thinks of ways to leverage a suite of tools to identify and drive profitable sources of revenue growth

A CFO has a very important role to play within a growing company, therefore we want to make sure that they contribute maximum value to the business. They need to be a team player and deeply invested in the success of the business. They are forward-thinkers, influences and a financial asset to your business. Make sure that you as them the right questions and give them the right KPI’s in order to get the most value out of the position as it is most likely a big part of your payroll expense.