You’ve worked hard on your business. It may have started out small, but now you need help. You’re ready for the financial stability that a CFO can provide, but how can you find the one that is best for you and your business? Your CFO will take on the financial related aspects like audit prep, accounting, reporting and your other financial needs. With a dedicated CFO, your company can grow and flourish, but is it really best to hire in-house or are outsourced CFO services the way to go?
As a business owner, you and maybe your employees wear many hats. You may hire someone to do one job, but they end up taking on multiple tasks. This can ring true as well if you hire an in-house CFO. Your CFO might end up taking on more than just their financial tasks, leaving them unable to focus on their job during crucial times. When you outsource, the CFO only works on the financial tasks. This single purpose and focus will ensure that your finances are being handled properly and efficiently.
A recent article from Entrepreneur detailed the cost of hiring a full time CFO. When you hire an in-house CFO, you pay for them every day. Besides their large figured salary, you also pay for their benefits, taxes, and resources. It’s estimated that you will pay over $18,000 a month for your in-house CFO. Virtual or outsourced CFO services will only work when needed (this is usually one or two days a week). You will only have to pay them for the time they work for you. This is an estimated cost of around $6,400. This will save you at least $11,600 a month. Don’t put a financial strain on your business with an expensive CFO, outsourcing can give you the ability to put the savings back into your business.
Hiring an experienced CFO may be a financial burden on your business, you may go with a less experienced one for a lower rate. Unfortunately, this person may not have the experience or resources to take on big projects like mergers, change in the law, obtaining loans or grants, or even dealing with business closings. The less experienced CFO may be capable, but with out the experience and the focus, it could be disastrous. Outsourcing, you gain an experienced CFO and the team of resources that come with it. Outsourced CFO services have handled more businesses and have the experience on how to tackle those large, intimidating projects.
If you’ve ever watched a scary movie, you know that the characters make all sorts of terrible choices, leading them right into the bad guy’s hands. You may even yell at the screen “don’t go in there”. Why do they always go in there? Probably because they are too close to the problem at hand. An in-house CFO can also be too close to the problems in your business. An outsourced CFO has a fresh, independent perspective. This way they can help you find solutions you may not have seen, being in the middle of the situation. Think of them as the guy to keep you from “going in there”.
Your in-house CFO may work great with everyone in your company, but this also may mean that they are too open with things like passwords and financial information. The fluid sharing of this information could hit your hard, especially if someone starts fudging the numbers. The outsourced CFO is not in the same physical or personal situation as the in-house one. They will not be giving out any information or accidently give access to someone else. The information is restricted and protected. If you are looking for the right virtual or outsourced CFO for your business, it’s time to check out Nguyen CPA. Not only are we experienced accountants, we can handle all your CFO needs. Contact us today.