59% of businesses use outsourcing as a way to reduce their expenses. Outsourcing allows you to increase your business efficiency while having access to higher-quality resources without having to pay as much for a full-time employee.
One commonly outsourced position is CFO services, which are vital for any business. Do you want to learn more about the pros and cons of outsourced CFO services?
Keep reading this guide for everything you need to know about an outsourced CFO and if it is right for your business.
Pros of Outsourcing Business CFO Services
There are many reasons why you may want to outsource company CFO services. They provide many business benefits and are a good choice for any business owner.
Here are some of the top reasons you should consider outsourcing your CFO services!
Expert Financial Advice
The primary benefit of outsourcing your CFO services is that you will have access to expert financial advice. Outsourcing companies only hire the best of the best. This means that they offer experienced candidates with the right qualifications and training.
If you were to hire a full-time CFO, you would be responsible for training them. They would need to learn more about the way your business runs and it can take a lot of time and resources.
Outsourcing allows you to have expert guidance for your company without having to worry about finding and hiring the most qualified candidate.
Another reason why many companies choose to outsource their CFO services is that it is much more cost-effective than hiring a full-time CFO as part of your in-house staff.
When you hire a new employee to work full-time, you have to pay more than their salary. You also need to consider the cost of health insurance, paid time off, and other types of benefits and compensations.
On the other hand, you will not have any of these costs with an outsourced CFO. Instead, you will only pay for the services that you need. If your business needs change in the future, you can scale your CFO services up or down to meet your financial needs.
Offers an Outside Perspective
An outsourced CFO will also provide your company with an outside perspective. This is especially important when it comes to financial management.
For example, your business may be used to running things a certain way. When you outsource your CFO services, they may be able to identify ways that your business could improve or help you recognize errors that your business is making.
This outside perspective can help you make important changes to improve your business.
Finally, outsourcing CFO services for your business helps you prevent fraud. Fraud is a problem for businesses of any size and is often due to someone in the accounting or financial department of your business.
It is easy for someone working closely with your business to manipulate the bookkeeping, whether this is due to carelessness or if it is done purposefully.
When you outsource your CFO services, there is more than one person that is in charge of your business transactions and finances. This will make it easier to spot signs of fraud and to fix errors before they become more serious.
Cons of Outsourcing Business CFO Services
While hiring CFO services offers many benefits, there are also a few drawbacks. Learning about both the pros and cons of outsourcing these services will help you make an informed decision about what is best for your company.
Here are some of the top drawbacks that come with outsourcing business CFO services.
Lack of Industry Experience
In some cases, it can be difficult to find outsourced CFO services that have experience in your industry. This is especially difficult for less-traditional companies that have different financial needs.
Without the right experience in the industry, your CFO services may not be able to provide you with the same quality of services as someone who knows your business in and out.
When hiring CFO services, you can discuss your industry needs with your outsourcing company to find CFO services that understand your business.
Not Connected With Your Business
Outsourcing companies are often less connected with your business. If you were to hire an in-house CFO, you would see them every day and interact with them in the office. This would make it easier to discuss your questions and concerns with them.
While outsourced CFO services are not as connected with your business and may have limits in communication, there are ways that you can improve this.
Using instant messaging systems will help you stay in touch with your outsourcing services and keep them up to date with your questions and concerns.
Finally, when you hire out your CFO services, you may have less control over your business. Many people worry when they don’t have in-house accounting or financial services, as it is more difficult to keep track of your business’s financial performance.
Still, most outsourcing services will provide you with regular reports to keep you in the loop with changes to your business. Finding an outsourcing company that prioritizes communication with clients will help you avoid this problem and will help you keep control over your business.
Looking for Outsourced CFO Services? We Can Help
CFO services are commonly outsourced in businesses across the United States and provide many benefits to business owners. While there are both benefits and drawbacks to outsourced CFO services, getting this expert financial advice will help you save money on business expenses.
If you are interested in hiring CFO services, Bennett Financials can help! We provide everything from CFO services to bookkeeping, tax planning, and more.
Contact us today to learn more about our services and to get a free consultation for your business needs.