Your small business is on the hunt for a Chief Financial Officer, but you’re at a crossroads between selecting an in-house candidate or daring to outsource a professional. A vital component of your business’ financial stability is collaborating with an expert who knows numbers—and how to project them.
If you’re on the fence about hiring an individual from a boutique accounting firm, here are a few reasons you should set your worries aside.
In-house CFOs will likely demand a six-figure salary—something smaller business owners aren’t likely to afford. Not only will you struggle to come up with the funds, but you’ll also have to consider taxes, benefits, and additional work-related resources.
On the other hand, outsourcing a CFO means doing without a full-time salary. With a subcontract, you’ll only have to compensate your CFO for the work they actually do.
While employing an in-house CFO may seem attractive or reputation-building, it can put a financial strain on your scaling organization.
Small and medium-sized enterprises without a significant fleet of employees typically mean decision-makers have to take on multiple roles. Thus, your in-house CFO will likely spend more time overseeing urgent tasks rather than zeroing in on your financial goals.
An outsourced CFO isn’t going to stray from your financial data to take on assignments they aren’t hired to facilitate. Furthermore, external CFOs don’t have to be present all the time, which means they aren’t going to be pulled into a project they have nothing to do with.
A reliable CFO will ensure that you have ultimate control over your financial information. An in-house professional will work and collaborate closely with every department, which can prove beneficial for your business.
However, it may also mean freer access to data, passwords, and information that you’d rather remain at the discretion of your CFO—exclusively. Regardless of how secure you keep sensitive and confidential data, there is still ample risk of unauthorized access with an in-house CFO.
With an outsourced counterpart, your CFO can delegate access to appointed recipients and reduce the risk of fraud. Doing so will also increase business integrity and security.
Hiring someone in-house means dedicating time and resources to additional training. By outsourcing talent, you can hone in on individuals with highly particular skills and impressive performance levels.
If your CFO is already brimming with experience, you can expect a boost in productivity and eventually see your sales flourish.
Don’t indulge in a time drain or jeopardize customer satisfaction by training an in-house CFO. By outsourcing a qualified specialist, you get to enjoy time and resource benefits that you wouldn’t otherwise have.
Begin your accounting solutions journey with Aaron Parthemer, who can guide you through the ins and outs of business finance with a Certified Financial Planning Designation. We are more than equipped to handle tax advisory services with a progressive business model tailored to your specific needs.