Cost of Hiring an Employee versus Outsourcing CFO Services
Whether you’re just starting or having run a business for some time, you likely are well aware that it takes money to make money. Spending decisions are made with the intention to better your bottom line. Naturally, one of the most important investments you can make is hiring staff that work efficiently. The cost of onboarding an employee is arguably one of the most expensive aspects of running a business, so you’ve got to make sure you choose the best person for the job every time. Here, we shed light on the cost of hiring an employee to fill your CFO C-suite seat versus outsourcing CFO services.
Hiring takes a lot of skills, patience, time and money.
Particularly in the startup process, every hire is crucial. From accounting to advertising, you must fill these positions with strategy, skill, and cost-efficiency in mind. Of these areas, no role is more important than accounting. Finances are what make or break your business’ success. Here is a breakdown of what hiring a Chief Financial Officer could entail and the many benefits of outsourcing CFO services to a Virtual CFO. To round it all off, we have a CFO solution to reduce hiring costs and improve your bottom line significantly.
What Types of Services Does a CFO Provide?
The chief financial officer’s primary responsibilities are planning, implementing, managing, and running a company’s finance operation, including cash flow, budgeting, forecasting, and negotiations. CFOs are a crucial piece of any profitable company.
A full-time, in-house CFO can average an annual salary of $136,216. Naturally, this can vary depending upon your business’ size and location. For this very reason, many people are opting to outsource options, like a Virtual CFO. A Virtual CFO will help maximize profits and minimize payroll expenses compared to hiring on a full-time position.
Can a Virtual CFO provide the same services as an on-staff CFO?
Outsourced CFO services are only a fraction of the cost of hiring a traditional CFO. The business benefits of outsourcing are many. Not only are you saving in costs (taxes, insurance, etc.), but you are also only paying for the time the remote CFO works for you. For many, this is a more affordable and sensible option. If your business is growing, on the rise, or small in operation, this option is a better option.
When you outsource accounting and finance to a specialist, you are getting the knowledge and service from a subject matter expert. These professionals have rigorous practice with current protocols and procedures and cross-industry experience. This comprehension is critical for business strategy and growth, optimizing your efforts and goals as the business owner. Hiring a Virtual CFO can do just as much as an in-house CFO while costing much less.
Virtual CFOs offer experienced services and faster results.
Outsourced CFOs have decades of financial experience in the field and have the added skill of working remotely. This means that you can contact your Virtual CFO as needed, and all your files will be organized and available to you at any time. Hiring an outsourced CFO does not mean you are giving up quality.
Because an outsourced CFO likely has multiple clients, you can expect that they will be efficient and diligent to get to you the information and the results you need. The reality is, they enjoy what they do, and they want to service your business based on your needs.
At Two Sense Consulting, our goal is to save you both time and money, so you can rest assured we are doing the same in our personal and professional lives. The sooner you reach your financial goals, the sooner you can look at growth – another area we, as Virtual CFOs, like to hone in on!
Unbiased CFOs makes for unbeatable services.
We established above that Outsourced CFOs will use their experience to help you cut costs. In part, this is because they have no bias for your business and can make quick and strategic decisions even if that involves cutting costs. We provide companies with researched and clear goals to improve their business operations without pause but with transparency and tact.
Virtual CFOs provide interim CFO services also.
Maybe all you need is an on-call, as-needed option or interim CFO. Perhaps you want to bring in someone just long enough to review your books and give some advice. Whether your business has restructured or hasn’t hired an in-house CFO, our services are a great temporary option with lasting and long-term wisdom for future financial goals.
Hiring a Virtual CFO can lower costs but raise capital.
One of the main reasons local and international businesses hire us is to raise capital. Raising capital is not an easy process and can take time. We have experience in this area and, oddly enough, enjoy the number-crunching and goal-setting that comes with it. Our focus starts with researching your financial picture, preparing business plans, helping with cash flow, and more.
One thing to consider is that an in-house CFO may have personal attachments that limit their view. And this can certainly affect you financially in the long run. Hiring an outsourced CFO is an excellent option for those ready to hear an honest opinion on finances. With our thorough bookkeeping reviews and suggestions, you can expect an accurate picture of your finances, as well as a solid plan forward.
Are Outsourced CFO Services Right for My Business?
We’ve explored the cost of hiring an employee to fill your CFO C-suite seat versus outsourcing CFO services. What is right for you? The choice to hire a c-suite employee versus outsourcing CFO services is a decision only you can make, but our free consultation can help you in making that decision! Feel free to browse our website to learn about our experience, our skill sets, and how our pricing works. If you’re looking for some expert help guiding your business and its bottom line, contact us today to learn more.