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How to add immediate value to your Fractional CFO services

How to add immediate value to your Fractional CFO services

Having a proven and ready-to-deploy Cash Flow solution is a game changer.

As a Fractional or part-time CFO, one of your primary objectives is likely to improve cash flow for an organization.  Fast.  Your mid-size clients are likely dealing with inconsistent Accounts Receivable practices and unreliable forecast modeling that needs to be quickly overhauled.  That task is daunting, even for a full-ime CFO and their team.  Let’s admit it. Like most CFOs, you likely want to focus on high-level financial strategy instead of rebuilding a client’s credit department and AR processes.   

So, how do you deliver the WOW! factor in your discovery meeting that carries into the working relationship? 

Maintain proven AR solutions in your toolbox that solve immediate and long term needs.

Existing AR departments of companies you advise are likely wrought with inefficiencies, which lead to poor forecasting and cash flow management.  When you enter into that environment with ready-to-implement solutions that generate immediate results, you will likely discover it to be rewarding to both you and your clients.  In the least it will get you a nod and raised glass at the client’s next employee party.  At the most it will get you a client (and referrals) for life.  Why?  Simple.  Outsourced AR solutions have become widely accepted by CFOs in every industry, in order to create lean and efficient credit departments.

Many of us are familiar with software solutions for Accounts Receivables that are commonly outsourced and widely available, including:

  • Accounting Tools
  • Payment Processing Tools
  • Payroll Management and Human Resources Platforms
  • Spend Management Tools
Having these tools are wonderful, however, most internal credit departments come up short when it comes to staffing the department with competent personnel and executing effective processes.  This is where outsourcing AR management is able to help you (and their Cash Flow) shine.

The benefits of outsourcing AR services are compelling.

  1. Cost-Effectiveness.   Reduction in overhead costs like salaries, training, and benefits are particularly beneficial for mid-size companies with limited resources.
  2. Focus on Core Business Functions.  Outsourcing allows the fractional CFO and the company’s management to focus on core business functions.  Key personnel are not bogged down by the intricacies of AR management.
  3. Access to Specialized Expertise.  Outside firms that specialize in AR can provide access to advanced technologies.  These latest tools are usually included in a service plan, allowing you to not expense them internally.
  4. Scalability and Flexibility.   Help your clients scale their AR operations up or down without the constraints of an in-house team, adapting quickly to changes in business volume.
  5. Risk Mitigation.   Reduce risks associated with credit and collections. Specialized agencies are better equipped to handle compliance issues and have established protocols for dealing with delinquent accounts, thereby reducing you client’s risk exposure.
  6. Enhanced Efficiency and Technology Integration.   Specialized agencies often have more streamlined processes, thereby creating greater efficiency.  The  integration of advanced technologies like AI and machine learning in AR management can significantly enhance efficiency and accuracy.

Outsourcing AR management is a strategic move for fractional CFOs, leading to cost savings, efficiency gains, and allowing the company to focus on its core competencies.

Can your clients benefit from improved Cash Flow and lower overhead?  Start the conversation with us today to discover how TCD can optimize AR.

Request a Discovery Consultation

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