External financial management: how can it benefit me?

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The financial management of a company is the part in charge of plan, execute and analyze the capital exchange. But, have you ever thought about outsourcing it to help you make the right decisions? In this post we are going to tell you the benefits  who has to hire one external financial management for your company. Do not miss it!

External Financial Management: What is it?

The financial problems they are the effect of other activities that occur in your company, as well as an indicator that something is wrong. And it is that sometimes we believe that we can solve these situations on our own, however, sometimes we do not have the experience and the necessary resources to address these situations.

The external financial management is the transfer of the company finance functions to experts outside the organization. It's about a strategic support for any company since it allows to optimize the economic resources and maximize the creation of value of the same.

On many occasions, due to the size and volume of the company, it does not need or cannot afford to have an internal financial department. But the knowledge of the company and the advice of a financial expert is necessary for the proper functioning of the business.

In this case, hire a external financial management allows SMEs to have the help of a CFO either C.F.O. (Chief Financial Officer) that will allow them to detect the causes of problems and make sound financial decisions, as well as save a lot of money.

The Duties of an External Finance Director are:

  • Control the economic-financial state (financial analysis, financial planning, resource management and participation in decision-making) of the company
  • Prepare periodic reports for analysis and monitoring
  • balance sheet analysis
  • Management and cost control
  • investment policy
  • treasury management
  • Search for bank financing
  • decision making

Therefore, the external financial management consists of having a qualified professional with extensive experience, for a much lower cost than if you hired him internally, since he would only dedicate the necessary time to have a good knowledge of the operation of the company and its finances.

Advantages of having an External Financial Department

A external financial management it's based on specialized professionals that help manage the financial management of a company. This will allow cost savings and support in making strategic decisions that help the company to differentiate itself from its competition.

The external financial management It allows:

  • Diagnose the current situation of the company
  • Improve decision-making by having a qualified professional
  • Develop business plans and strategic plans
  • Periodically review the objectives and strategies of the company
  • Implement, analyze and periodically review the financial planning and budgetary control of the company
  • Improve cash flow and reduce financing expenses
  • Facilitate negotiation with third parties: suppliers, financial institutions and public bodies

Therefore, having a external financial director It will provide you with greater peace of mind since it will take care of negotiating with banks, analyzing costs, avoiding surprises in the treasury, correctly carrying out amortizations and accounting, among other matters.

Ultimately, if you have a financial management outsourcing, your company will be able to focus on other important tasks such as the development of new products or improve its marketing actions to achieve greater profitability.

External Financial Management Services with Alter Finance

If you are looking for help to carry the financial management of your company, get in touch with Alter Finance to talk to a external financial director who can be part of your team, providing solutions and a strategic vision in making decisions for your business. Do not hesitate and... Get the most profitability from your business!

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