Next Dimension Accounting is experienced at delivering effective outsourced accounting services, with ‘On Demand CFO’ services among the most popular.
While the concept of a CFO is often considered just for big business, this type of service can be of considerable value to a not-for-profit organisation.
So, what is a CFO?
The Chief Financial Officer or CFO oversees the organisation’s financial activities rather than handling the daily financial tasks. The role often involves the management of KPIs, presenting financial results, developing strategies to offset risk, and forecasting budget and cash flow.
Where an accountant deals mainly with past financial activity, the CFO focuses on the future, to create a financial plan, project results, troubleshoot and offer solutions to the organisation. This, in turn, builds the organisation’s success and promotes resilience.
What role do CFOs play in an organisation?
The role of CFO requires expertise and entails responsibility, so it is traditionally a senior position within an organisation’s hierarchy. The CFO often reports to the CEO or works alongside them.
Many small-to-medium-sized operations don’t have a full-time CFO, or their structure isn’t set up for a multi-level hierarchy.
A CFO’s tasks might be juggled between the CEO, Managing Director, and accountant/bookkeeper. A volunteer Treasurer might have to take them on in a small NFP. In practice, this often means important, but less immediate ‘big picture’ CFO tasks are put off indefinitely.
What impact can CFOs make to NFPs?
An outsourced CFO is a hugely beneficial addition to an NFP. It may be necessary to change the organisational mindset, but some expenditure on CFO expertise could reap considerable dividends for the organisation’s security, productivity and longevity.
Problems the outsourced CFO can alleviate include:
- Key person dependency risks
- Financial staff on leave
- Succession planning dilemmas
- Sets of figures that become redundant due to unforeseen events
- Attempting to audit and restructure staff
- Lack of technical knowledge
Some typical scenarios where an ‘on demand CFO’ adds significant value to your NFP include:
- Presenting scenarios to the Board, with full financial figures and clear reporting.
- Using broader business experience to anticipate budget shortfalls and help set up solutions.
- Step up when the team lacks the financial expertise to manage organisational growth and seize new opportunities.
- Covering financial matters so management can focus on different aspects of operation, such as marketing.
How does the role work in terms of outsourcing?
Your organisation can appoint an ‘On Demand CFO’ from a professional outsourced accounting service such as Next Dimension Accounting.
Our organisation fits in with your existing structure by collaborating rather than competing with your accountant.
Contact our team today for an obligation free discussion about our On Demand CFO services or find out more here [link to website].