Why outsource CFO services during these uncertain economic times?

At some point it will make sense for a growing firm to hire an internal CFO to drive the financial path for the company. The costs to fill this position can be in excess of $200,000 per year. If your firm is not ready to make that kind of commitment, outsourcing CFO services can generate significant savings while receiving high quality services. As we face the upcoming impact on the economy due to the COVID-19 pandemic, now is the time to determine if outsourcing is right for your firm.

Here are some reasons why hiring West Avenue Financial can set you up for success right from the beginning or help you cut costs as we face an economic downturn.

1. Financial Decisions: During these challenging times as a result of COVID-19 there may be difficult decisions that need to be made from a staffing or service provider perspective. West Avenue Financial can assist with a detailed analysis of the existing operational budget and make suggestions for improvement or cutbacks. We can help you determine what you must maintain and what is optional.

2. Service Provider Selection: As the famous saying goes, “you don’t know what you don’t know”. If you are unfamiliar with the going rates for fund document preparation, year-end audits and tax preparation services for example, you may end up paying unnecessarily high rates for those services. West Avenue Financial can help you determine the best pre-qualified service providers based on your vision for the fund and your target investor pool.

3. Experience: We have assisted clients launch hundreds of funds over the course of our careers. Once the appropriate service providers are in place, West Avenue Financial can assist you every step of the way to execute an efficient launch and quarterback all service provider relationships.

4. Service Provider Oversight: Understanding what the roles of each service provider are along with proper checks and balances are a large part of the CFO’s role. West Avenue Financial knows exactly what your administrator should be providing, what your tax preparers and auditor both need to fulfill their responsibilities. We will run shadow calculations to the fund administrator and independently validate the monthly financial statements, audited financial statements, review tax returns and compliance.

5. Minimize Overhead: Whether you are an emerging fund manager or a long-time established fund manager, minimizing overhead will increase your bottom line. Eliminating expensive benefits, office space and payroll taxes will help you utilize your management fee income as efficiently as possible.

6. Process Improvement: We have been improving processes since the turn of the century. Utilizing today’s accounting technology combined with automation available within Microsoft Office products, West Avenue Financial can improve processes significantly while incurring minimal or no additional costs.

7. Reporting and Budgeting: West Avenue Financial will prepare your budgets and projected financial statements for the management company. This budget is important to the daily decisions made within a firm to reach its long-term financial goals.

0 views0 comments

© 2020 Foxrock Management All rights reserved.