CFO Advisory Consultants: What They Do & How They Help

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Today’s management teams must overcome many challenges when navigating the strategic path towards sustainable growth: a volatile talent environment, capital constraints and an increasingly competitive market, to name but a few.

Given this complex and demanding operating environment, it can be difficult for seasoned teams to turn goals into reality – especially if they fail to have experienced finance professionals by their side.

As experts in helping scaling organizations, we’ve outlined everything you need to know about CFO advisory consultants – and some of the signs for when it’s time to hire one.

Important things to know about CFO Advisory Consultants:

  1. How has the role of the CFO changed over time?
  2. What does a CFO advisory consultant or team do?
  3. What are the benefits of hiring a CFO advisory consultant or team?
  4. When should you hire a CFO advisory consultant or team?

How has the role of the CFO changed over time?

Historically, the role of the CFO has been involved in tactical tasks such as accounting, financial reporting and budgeting.

However, with the inherent complexity of today’s financial and operating environment, the CFO is now a central partner in providing the informed data-based decision making and operational structure necessary to successfully implement and guide an organization’s overall growth strategy – not just oversee day-to-day duties.

This highlights the importance of having a trusted team of finance professionals with deep expertise who are ready to step in and not only backstop the finance function, but also provide an additional depth of insights.

Common CFO activities & responsibilities:

  • Fundraising strategy development
  • Exit strategy development
  • Budgeting & forecasting
  • Cash flow management & working capital optimization
  • Financial statement preparation
  • Financial planning & analysis
  • Treasury & funds management
  • Tax consultation
  • Investor & lender communication
  • Risk management
  • Capital structure & financing
  • M&A/IPO/SPAC support
  • Financial system & process implementation

What does a CFO advisory consultant or team do?

CFO advisory consultants and teams are experienced financial who provide strategic support for day-to-day operations and long-term financial goals.

This unique ability to develop better insights and-create a competitive market edge involves a wide array of responsibilities, ranging from the refinement of financial performance by measuring critical metrics to the deployment of the most efficient operational technology stack.

Whether you require ongoing strategic financial advisory or tactical support for one-off projects, CFO advisory consultants provide a depth of cross functional know how and a cost-effective approach to achieve growth and scale.

The ways in which they can support your organization will depend largely on your unique needs, industry and goals – however, the right CFO advisory consultant or team will begin with an analysis of your business, including an assessment of the existing operational and financial model, resource capacity, growth goals and more before recommending the best path forward.

Skills and duties of CFO advisory consultants:

  • Identifying high-quality fundraising opportunities and providing support to raise additional capital.
  • Developing and integrating plans, processes and methodologies to prepare an investment or organization to be sold for a profit.
  • Supporting an organization’s operational model to achieve both short-term requirements and long-term financial goals.
  • Providing in-depth financial planning and analysis in support of informed financial and operational decision-making.
  • Assisting a company with due diligence activities, if/when needed.
  • Managing cash flow, from burn-rate and runway analysis to credit risk.
  • Design and implement a commercially appropriate treasury strategy which maximizes return, minimizes costs and reflects investors’ appetite for risk.
  • Providing guidance on tax structures while ensuring accuracy and an efficient tax compliance solution.
  • Developing a formal and informal collaborative communication plan with investors and external partners.
  • Preparing audit-ready financial statements and footnote disclosures for private and public companies in accordance with applicable reporting requirements.
  • Supporting the implementation of financial systems and solutions that help provide more real-time visibility, make processes more efficient and foster seamless communication across teams.
  • Guiding an organization through an M&A, IPO or SPAC transaction.
  • Managing risk and ensuring compliance with laws, regulations, standards and best practices.

What are the benefits of hiring a CFO advisory consultant or team?

  • Access to years of industry expertise.
  • Seamless implementation of scalable financial strategies.
  • Actionable insights into financial and operational performance that guide overall decision making.
  • Deployment of resources to the highest and best possible use for your organization, helping to establish success in a competitive environment.
  • A reduction in operational and financial risk as compliance with laws, regulations, standards and best practices are implemented and/or refined.
  • A cost-effective approach to support scaling your organization.
  • Speed to implementation as resources are properly allocated and operational procedures are made more efficient.
  • Successful collaboration across teams and with investors and stakeholders.

When should you hire a CFO advisory consultant or team?

There are many reasons why you may want to consider hiring a CFO advisory consultant or team, as making the decision requires a careful analysis of your current needs and goals – but at any stage of your lifecycle, they can offer the strategic guidance you need to overcome challenges, drive successful business transformation and move forward with full confidence.

A CFO advisor or team can add value at any stage of a company’s evolution. Especially if you’re a startup looking to scale, hiring a trusted partner from the get-go can be beneficial as they step in to provide support and knowledge where it’s most needed.

Whether you need to integrate new technology, establish more effective operational and financial processes or raise additional capital, CFO advisory consultants and teams can be instrumental in strategically preparing you to take on the next challenge in today’s competitive market.

Common signs it’s time to hire a CFO advisory consultant or team:

  • It’s challenging or too time-consuming to manage complex financial matters.
  • Your organization is running into issues regarding cash flow management or compliance with laws and regulations.
  • You don’t have the internal resources needed to drive financial success.
  • Your organization is looking to enter a new market, embark on an M&A or IPO transaction or is undergoing a period of rapid growth.
  • You need support to implement and identify the right financial systems.
  • It’s challenging or too time-consuming to collaborate with investors and stakeholders.

Looking for a Trusted Partner for Growth?

For nearly 30 years, Kranz Consulting has advised and supported CFOs, entrepreneurs and founders through the complexities of building high-growth businesses. From interim management to leading your organization to an IPO, we ensure that your business receives a tailored white-glove service through every stage of growth.

Contact us today or learn more about our CFO Advisory & Strategic Finance services at the link below.