Deciding Whether or Not to Outsource Your CFO?

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.