In recent years, this has been a very popular question for companies of all sizes: When does it make sense to outsource CFO services? Ultimately, it is a decision you have to make for the betterment of your own business. Here are some pros and cons of hiring in-house versus outsourcing your CFO services.
Keeping it In-House
In-house contracting is the traditional way for businesses to structure their financial management. Depending on the size of the company, there may be a full-time salaried CFO on staff or the duties may be split up among several people. Smaller companies may just have someone handling CFO work part of the time. In some cases, the owner is doing it themselves.
There is a certain comfort level with keeping important financial planning and bookkeeping decisions in-house. Hiring a full-time CFO can be expensive, especially since salaries for really good CFOs aren’t cheap. However, when CFO duties are split up or someone with no experience is handling the job, the CFO role may not be as impactful as you want it to be. This can lead to mistakes and missed opportunities for your business.
Outsourcing CFO Services
More and more businesses are outsourcing their CFO services to CPAs and accounting firms. It may seem odd to give up financial management to an outside source. Yet, the pros of outsourcing directly address the significant cons of keeping the CFO services in-house.
First, outsourced CFO services are much less expensive than hiring an experienced full-time CFO; you don’t need to worry about the lofty salary or other benefits. Second, you’ll know your financial management needs are in good hands. You’ll have a single-source solution with a professional CPA firm working for you. Another advantage is objectivity. Sometimes, being too close to your own finances isn’t a good thing. Having a financial partner who can look out for your best interests with a different perspective can help you make better financial decisions for your company.
Your Financial Management Resource
From bookkeeping and budgeting, to financial planning, tax preparation and payroll management, imagine the time and money you can save (and ultimately make) by outsourcing your CFO services to a leading CPA firm like Ferguson, Timar & Company.
Let us show you the advantages of our outsourced CFO services. We can ease the stress of financial management for your company at a fraction of the cost it would take to pay a full-time CFO. Contact Ferguson, Timar & Company today for a no-obligation CFO outsourcing consultation.