Outsource or in-house? Your company size, structure, and industry often dictate the right choice, but so do the potential benefits. As an outsourced accounting firm, we could give a laundry list of reasons to switch to outsourced services, but we'll leave it at five ... for now.
1. You cut costs.
It's not just major corporations doing more with less in the face of COVID-19, but it's the regular lay of the land for small- and medium-sized businesses. If you're looking to cut costs, outsourced CFO services can help.
An outsourced CFO is just like an in-house CFO, but they operate outside of your business on a contract and/or part-time basis. This option is more affordable for small businesses because it cuts out the overhead—you don't pay your CFO salary or benefits but rather operate within a service-based relationship.
Bonus points: Outsourced CFO services are like accounting à la carte—you only pay for services you need when you need them.
2. They're unbiased and objective.
Outsourced CFOs have rosters of clients, serving wide-ranging needs at any given time. And while these professionals care deeply about the quality of work they deliver to you and about your financial success, operating as an outside entity eliminates potential bias or a personal agenda related to your business.
Example: Let's say you need to switch vendors due to recent price hikes for core products. You've cultivated a strong relationship with your point of contact over several years, and you don't want to make the switch—you need to. On your own—or even with the help of an internal accounting team—emotion may weigh heavily on this decision. However, an outsourced CFO would be poised to easily make this necessary cost-cutting decision.
But put the shoe on the other foot: An in-house CFO spends 40-plus hours a week exclusively serving your company. The loyalty that comes with that means they want the best for the business, but it could also hinder objectivity. So, which is more important?
3. They offer customized service.
CFO services are like a homemade ice cream sundae. You have all the fixin's and your favorite ice cream flavor(s)—the only question is, how big are you going to go?
Outsourced CFOs completely tailor their work for your business because they know one company's appetite isn't necessarily the same as another. You get only what you want and need, and your scope of work depends on several factors:
Your organization's size
Your industry
Your financial needs
4. They provide niche expertise.
If you need accounting expertise, but your business is complicated or otherwise unique, the idea of hiring a CFO in-house may have you frazzled. Luckily, outsourced CFOs usually specialize in one industry, easing that worry. These pros come ready to tackle any financial challenge, bringing years of experience in the sector you operate—private, public, or nonprofit. At the same time, they're also expert and flexible enough to resolve diverse financial issues
Outsourced CFOs are always assigned to be your right fit. In a way, it's a bit like online dating: You identify your business needs and goals, and the CFO that checks all the boxes is your perfect match.
5. You can fill a temporary vacancy.
It's weird being in limbo. You're in the middle of hiring a permanent CFO, but still need financial guidance in the meantime. Who ya gonna call? Not Ghostbusters, but an outsourced partner instead!
If you need to fill a temporary vacancy, turn to outsourced CFO services while you recruit for the full-time, in-house role. By doing so, you get qualified expertise but also the key benefits of preventing both business and financial disruptions cost-effectively.
In-house or outsource? Choose your own adventure based on business needs and growth goals. Outsourced CFO services could be your right-fit solution due to benefits ranging from money savings to access to niche expertise. Explore Ignite Spot'ss CFO services to learn why businesses like yours trust outsourced solutions and to see our approach.