By: Krista Gardner, CPA
Member of the Firm

Governmental entities require expertise in complex governmental accounting standards, funding sources, and future planning. However, due to the declining number of practicing accountants in general, and even more specifically governmental accounting, finding someone who fits the traditional employee mold while possessing the necessary understanding of governmental entities and accounting has become challenging. For this reason, outsourced CFO services have increasingly become an attractive option.

Available as a temporary or even permanent solution, outsourced CFO services can benefit your organization in many ways. Whether you have a temporary vacancy of your Director of Finance or Business Manager, or need an additional resource added to your current finance and accounting team, outsourced CFO services are tailored to your organization’s needs at that time, with the ability to ebb and flow as the organization or situation changes over time – reacting to external impacts and preparing for future needs of the entity and those it services.   

Typically handled as more of an à la carte option – where you get to determine what the goals and outcomes are, how much time is needed, and the length of time – this type of relationship allows you to have governmental experts available to you, without the salary and related benefit expense of hiring someone as an employee. We like to call it “right-sizing” for what your organization truly needs.

Some examples of what an outsourced CFO can provide to your governmental entity:

• Filling a vacant role (in a temporary or permanent capacity), as well as assisting in finance role transitions and the necessary training
• Budgeting – whether it is assessing your current process and offering suggestions, or assisting with/running the entire budget process with your team,
• Audit preparation and management
• Financial statement preparation
• Cash flow forecasting and assessing current needs / providing guidance on how to maximize returns of current and future assets
• Assessment of processes and procedures, as well as related internal controls, to provide suggestions for strengthening controls, while creating efficiencies for your team
• Capital project plan development – assessing future needs of the government, reviewing financing options, cash flow projections and management to meet upcoming needs
• Monthly reporting and meetings – assessing your current financial position and effectively communicating with your staff, management, and board members on what the financials mean and how to use that information in important decision making
• Assessment of current general ledger system set up, chart of accounts, reporting, etc. to provide feedback and suggestions on how to utilize your systems more effectively or to assist in identifying new systems

Some of the benefits of working with an outsourced CFO:

• Access to an expert in the government industry that understands the needs of your organization as well as the related accounting and requirements that go along with your funding and operations
• A professional service that is meaningful to your team, but is not the same added expense of hiring an individual at the same level, with the applicable benefits
• A relationship that can mold to what your team needs are based on priorities, but is adaptable to those needs as they change
• Additional resources, whether on a one-time project basis or providing ongoing support

The goal as an outsourced CFO is to provide a resource that is going to allow your team to focus on what you do best, while providing additional insight on how to look forward and prepare for the future. The government world is unique and has its own set of challenges, not always relatable to other industries. Finding an expert in the industry is key to moving from an organization that might just barely be getting by, to one that is actively preparing for the future. With resources in this space continuing to be increasingly limited, working with an outsourced CFO may just be a perfect fit for your organization and team.

So, do you have a payroll or accounts payable team member out on extended leave? We have an entire department available to serve in that role for as little or as long as you need. Do you require additional HR support or assistance with reviewing your employee handbook and benefits? Our HR Advisory Department can help you. What are the processes that you have asked yourself whether there is a better way? And what are the items that you just have not gotten to?

We can help! If you are interested in more information to determine whether SEK’s Outsourced CFO Services are right for you, we’d love to have a conversation. Complete the form below and we’ll be in touch shortly!