Deciding Whether or Not to Outsource Your CFO?

If you are a small business owner, you have likely contemplated whether or not you need an in-house CFO or if it would be best to get outsourced CFO services to help your company grow. This can be a challenging decision, as both options can be beneficial to your business. We’ve put together a list of a few advantages and disadvantages for both to help you decide:

In-House CFO Services:

Advantages

There may be more confidence and trust with someone in-house, as a business owner you can trust that in-house CFOs care directly for the health of your specific business completely.
In-house CFOs are concerned about your business only, and will not be distracted by other clients.
In-house CFOs may have a better understanding of the bigger picture in regard to your company as a whole.

Disadvantages:

The salary for a full-time CFO is around $519,692 according to investopedia.com.
You have to pay for healthcare and other benefits in addition to salary.

Outsourced CFO:

Advantages:

The cost of outsourced CFO services can save your business a ton of money.
Outsourced CFOs are paid at a fixed rate, which can be negotiated upfront.
You don’t have to pay for healthcare, vacation time, bonuses, and other benefits.
You only pay for the time you need, which can be a small amount during certain times of the year.
You get an objective point of view, that may be able to offer better, more creative solutions than someone within the company.
Outsourced CFOs have a large network of clients that may be helpful to your business as well.

Disadvantages:

Trusting an outsourced CFO with financial details can be difficult for some companies, as you may not know if they are planning on staying a while.

At TGG, we take pride in our expansive knowledge of financial reporting. Our mission is to make business owners lives better through excellent financial management. When business owners have the right numbers and financial processes in place their business outcomes will improve and they will see future success. Contact us to learn more about how our team can help your business grow.

Sources:

https://www.investopedia.com/terms/c/cfo.asp#:~:text=A%20chief%20financial%20officer%20(CFO,weaknesses%20and%20proposing%20corrective%20actions.

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