Outsourcing CFO Duties a Viable, New Business Strategy with CFO Selections

Finance is one more place to outsource while maintaining control

Bellevue, WA - When a growing information technology network provider's costs for financial operations shot through the roof, the Bellevue-based client turned to a new part-time financial services company to get better information, control and lower costs.

"We thought the accounting and finance department was the last place to look for operating efficiency," said the challenged CEO. "I had never heard of hiring a part-time chief financial officer to give us the high-level expertise we needed to oversee all accounting and financial operations and to manage our cash-flow.  As a growing technology company, we thought we couldn't afford the expense or recruit the right person.  Nor did we have the need for a full-time staff CFO. So the concept of a part-time CFO never occurred to us. Furthermore, employing a big-five accounting firm for the same work was way out of our budget and the skills too narrow."

One year after linking up with CFO Selections, the IT firm is back on track. The company enjoys more reliable information and timely services at a net savings. By securing an experienced part-time CFO to act as financial advisor there is the added benefit of  experienced leadership on the client's executive team.

The Revelation

This familiar situation and remarkable turnaround is typical of smaller growth companies, according to Tom Varga, president of Bellevue's CFO Selections, an innovative financial consulting firm.  

"The last place most entrepreneurs look to outsource is in the accounting and finance department,"  said Varga. But for many of these visionary business people, whose expertise often lies in operations, sales or marketing ' not finance ' ours is an excellent alternative. Our CFO Selections consultants offer the right mix of affordable financial acumen smaller businesses need to survive and grow.  

Another software distributor had different needs.  They wanted to completely re-evaluate both the financial and operational aspects at their business to ensure legal and financial compliance with the goal of increasing operation efficiency.  What's more, the CEO and founders were looking at preparing the company for an eventual exit strategy.

"This was a different kettle of fish," related Varga.  "To achieve a complete business operations review, make recommendations, to draft and implement a plan to improve all back-office processes, there were abundant accounting, logistic operations, finance and staffing issues to be broached. It also wasn't for the inexperienced consultant or feint of heart," he added.

To accomplish these complicated goals, CFO Selections provided expert resources in each area.  They updated financial policies and procedures, which generated $2M in excess cash flow over the first six months, doubling profitability in a difficult sales environment.  In addition, new Human Resource policies and procedures brought the company into compliance while implementing a new employee benefits and compensation package that resulted in increased employee retention. The partnership with CFO Selections helped in several ways.  First to present the client to potential buyers, then craft negotiating strategy and valuation models while preparing for due diligence for the principal's exit strategy.
 

The Concept

Varga has had a solid career as CFO of several global communications and startup technology companies. But, Varga began providing interim CFO services during the 1990s after discovering a substantial interest in outsourcing financial services. His concept gathered momentum when he collected an experienced team of former and current CFOs who enjoyed their independence and were willing to share their background, experience and skills with others on a part-time, contractual basis.

Through CFO Selections, the client receives a higher level of financial service for a lower cost.  Most importantly for many companies, they have the advantage of a senior-level executive on their staff that they didn't have previously.  CFO Selections also supports the client in the areas of modeling, budgeting and forecasting plus such usual tasks as the closing of the monthly books. Consultants also can provide such services as building a solid relationship with banks, negotiating with clients, vendors, lines of credit and even the purchase of the clients' company.

Outside financial consultants can greatly expand the perspective of the growing company.  Tunnel vision is a common affliction of organizations that are guided solely by in-house accounting staff because they are expected to react to situations involving finance problems beyond their area of expertise.  Once beyond their comfort zone, the in-house staff's perspective can be diminished.

The Team

CFO Selections personnel are specially chosen to provide experienced perspective concerning the accounting and finance operations of small businesses.

"For many of our accomplished associates, it is a lifestyle and freedom decision," said Varga. "After a decade or two of burning the candle at both ends at major accounting firms or as in-house CFOs at corporations, these individuals are looking to regain some control in their lives.  CFO Selections provides the platform for experienced CFOs to offer professional consulting services without being sucked back into corporate America. It's a true win-win situation with plenty of flexibility.

"It is fair to say financial management and accounting management are not the same discipline," continued Varga. "The small business entrepreneur often mistakes one for the other ' and the result can be costly."

Getting Together

All companies have significant say with whom they are matched. So, prospective clients can be certain the executive provided by CFO Selections is not only proficient but has the background and professionalism expected from an accomplished, senior executive.  

"Our team at CFO Selections offers the integrity, commitment and consistency that companies are seeking without the downside of recruiting and hiring someone with lesser experience. Our professionals are true CFOs who are committed to the delivery of excellent financial management services.  We consistently exceed the expectations of our clients with a new brand of flexible, outsourced talent that can be applied when where the clients' needs dictate," added Varga.

About CFO Selections LLC

CFO Selections has provided finance and accounting executive search and consulting services since 2002.  The Company focuses solely on locating, recruiting, and offering the highest caliber senior-level talent available. Its team of former CFOs works with clients in a collaborative and problem solving approach to generate maximum results. CFO Selections trusted executives can help your leadership team bridge the gap to profitable growth and tailor our engagements to meet your exact needs.

CFO Selections has offices in Bellevue, WA and Phoenix, AZ. and can be reached by contacting Managing Partner Tom Varga at (206) 686-4480 ext. 132, or tom@cfoselections.com.

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