It is tempting for a business to look to hire an accounting all-rounder, who can manage an assortment of financial tasks, such as, taxation, compliance, reporting, accounting, and business strategy. However finding an accountant who can manage all aspects of the financial mix is both rare and expensive. What is the difference between a CFO and an accountant, and how will adding a CFO Service help.
There is no doubt that hiring a full time Chief Financial Officer (CFO) makes complete sense when a business reaches a certain size or an advanced level of complexity in structure. There is also no question that a CFO occupies a crucial role in growing a business’ profitability, especially in the longer term. The decision facing business owners, is when is the right time to bring on a full-time CFO or whether there are benefits to having a part-time or outsourced CFO until a full-time CFO role stacks up financially.
The reason why a business should have an outsourced CFO is that they offer ‘strategic financial insight and manoeuvring that leads to increased revenue, without the need to pay a full-time CFO salary.’
Numerous small to medium sized businesses (SMB) have outsourced their CFO function to a CFO Service company and for a number of good reasons: The costs of a full time Chief Financial Officer (CFO) are often prohibitive for a small or medium sized company. It is virtually impossible to find a part time CFO, often because experienced CFO’s who want to work part time are working for CFO Service companies and not available for smaller organisations.
Outsourcing CFO services will give companies all the benefits of having a highly skilled and experienced Chief Financial Officer (CFO) on their team, but at a much-reduced cost.
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