The New CFO Has Arrived: The First 4 Things Danoy’s External CFO Will Do

The New CFO Has Arrived: The First 4 Things Danoy’s External CFO Will Do

One of the services we at Danoy most enjoy providing is outsourced CFO services. As part of this service, one of our senior financial professionals integrates as an external manager of the client’s finance department, thus offering the client organization the knowledge and experience of a senior and experienced financial professional.

As an external CFO, our financial professional has many tasks aimed at improving the client’s entire financial management. Where will they start? In most cases, our external CFO will focus on four main tasks:

  1. Learning About the Client and Their Goals: Make a change starts with understanding the current situation. The first task of Danoy’s outsourced CFO will be to learn about the client’s organization, its business and financial status, aspirations, and more. Our external CFO will get to know key personnel  and understand their needs, so that they can consider them in the financial management of the company.
  2. Organizing the Company’s Financial Management: Effective financial management requires a finance department that operates according to efficient filing and documentation procedures. Therefore, our CFO will conduct an audit of the current financial management, implement processes and information management systems, and assist in whatever is needed to build an efficient financial framework within the organization. Often, along with the outsourced CFO service, Danoy takes over the entire financial management of the company, making this process especially efficient.
  3. Identifying Where Money is Leaking: The experience of the outsourced CFO we assign to the client helps them identify the organization’s “money leaks” and fix them. Such leaks might include excessively high payments to suppliers, too high bank fees, incorrect organizational structure, unnecessary services, and more. The cumulative savings from Danoy’s outsourced CFO can be very significant.
  4. Creating a Financial Strategy: A financial strategy is the part of the business plan that focuses on the economic aspects of the business. It details the necessary actions for success and sets numerical targets. Many organizations have a business plan, but often it lacks a financial strategy. So, despite having a roadmap for development or sales, there is no consideration of the numerical targets that indicate the organization’s success. Therefore, one of the first actions of Danoy’s outsourced CFO will be to create a financial strategy that defines these numerical targets, taking into account profit/loss statements, expected growth in manpower, operational costs, and more.

After Danoy’s external CFO completes all these actions, they will continue to be involved in the organization’s management, managing the finance department and identifying ways to streamline and improve profitability.

If your company also needs the experience of an outsourced CFO, contact us.

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