Outsourced CFO flags year-end financial readiness as a key risk for businesses entering tax season

Outsourced CFO (OCFO) has warned that many businesses are approaching tax season and financial year end without the level of financial readiness required to manage reporting obligations effectively or make informed decisions for the year ahead. 

Headquartered in Cape Town, South Africa, OCFO is a global financial consultancy that provides fractional CFO, cloud accounting, and talent solutions services to businesses internationally.

With the financial year ending on 28 February, the firm says year-end pressure often exposes weaknesses in financial processes that have accumulated quietly throughout the year.

According to Damian Baker, Executive Head of Cloud Accounting at OCFO, the challenge is rarely the deadline itself, but rather the quality and accessibility of financial data available when businesses reach year end.

“Tax season has a way of revealing issues that may not have felt urgent during the year,” said Baker. “When financial information is fragmented or outdated, businesses are forced into a reactive position. That can result in rushed decisions, inefficiencies and missed opportunities.”

Baker noted that businesses often underestimate the cumulative impact of small delays in bookkeeping, reconciliations and reporting. While each issue may seem manageable in isolation, together they can significantly impair financial clarity at year end.

“As the year draws to a close, we often see finance teams under pressure to reconcile months of activity in a short space of time,” he said. “This makes it difficult to distinguish between operational performance and accounting noise, particularly when preparing for tax submissions and finalising management accounts.”

OCFO says the increasing complexity of modern business operations has raised the stakes around financial accuracy and timing. Businesses operating across multiple systems, payment platforms or jurisdictions can struggle to consolidate reliable data without strong underlying processes and appropriate technology.

Cloud accounting, Baker explained, has shifted expectations around what preparedness should look like at year end. Rather than relying on retrospective clean-up, businesses with consistent, real-time visibility are better positioned to treat tax season as a confirmation exercise rather than a correction exercise.

“Cloud-based systems enable businesses to maintain up-to-date records throughout the year, which changes the dynamic entirely,” Baker said. “When data is accurate and accessible on an ongoing basis, year end becomes less about fixing problems and more about validating results.”

He emphasised that financial year end should also be viewed as a strategic checkpoint, not solely a compliance requirement. Clear, timely information allows business leaders to assess performance, understand cash flow trends and plan with greater certainty for the year ahead.

“Businesses that approach year end with clean data and strong visibility can use the period to take stock properly,” said Baker. “That insight supports better budgeting, forecasting and decision-making, which ultimately strengthens financial control beyond tax season.”

The firm added that early preparation is particularly important for growing organisations, where increased transaction volumes and operational complexity can outpace internal finance capacity. Without adequate systems and oversight, growth can amplify risk rather than resilience.

OCFO works with businesses across multiple regions to provide CFO oversight, financial governance and cloud accounting support. The firm says demand for year-end assistance typically increases in the weeks leading up to the close of the financial year, particularly among businesses seeking to stabilise reporting and improve visibility under time pressure.

“While proactive preparation delivers the best outcomes, there is still value in addressing issues before year end rather than carrying them forward,” Baker said. “Even late-stage interventions can help businesses enter the new financial year with greater clarity and control.”

As tax season approaches, Baker encourages business owners and finance leaders to assess their current level of readiness and ensure that financial information is accurate, up to date and decision-ready. Clear visibility, the firm notes, remains one of the most effective ways to reduce year-end pressure and support confident planning in the year ahead.

For more information, or to contact one of the team at OCFO, readers can visit their website at www.ocfo.com .