//Why CFO Outsourcing May Be The Way Of The Future

Why CFO Outsourcing May Be The Way Of The Future

cfo outsource benefits

In today’s modern world, small businesses can literally outsource almost anything at all. But what about outsourcing CFO positions?

Many small business owners balk at the idea of outsourcing executive level positions. But that isn’t stopping outsourcing firms from creating opportunities that allow just that. And its growing in popularity.

Companies such as PreferredCFO are carving out a space that allows companies to outsource their CFO position. Just like Check Issuing allows small businesses to outsource their check writing services, CFO outsourcing companies aim to improve the quality of the businesses essential function.

But many small businesses remain hesitant to outsource check writing services, CFO positions, or other highly important aspects of their administration. It feels a bit, unsettling, to consider such a concept.

But why?

Let’s examine why small businesses are often not comfortable with high-level CFO outsourcing and what benefits they are probably missing out on.

Why Small Businesses Fear CFO Outsourcing

outsourced cfo benefits

When you are a small business owner, you take pride in the quality of your products and services. Executive level positions at your company need to share such sentiments.

That’s why you take so much time with the hiring and interviewing process. You want to make sure the executive you hire is truly on your team.

The term “outsourcing” feels anything but personal. In fact, it feels very corporate and impersonal.

But nothing could be further from the truth. In fact, a CFO outsourcing company is likely to have more goal driven executives than you could ever find. Remember, its easy to cut an outsourcing contract, not so much to fire a CFO you hired (more on that below). That said, outsourced CFOs tend to be passionate and driven. They are also less prone to company politics which could serve to frustrate them.

Outsourced CFOs are duty focused.

Small Business CFO Outsourcing Benefits

hiring sucks

There are lots of CFO outsourcing benefits to be had once you mentally accept the idea.

You Save Money

Straight up, you’re going to save money. You pay the CFO outsourcing company for the hours you really need, which is often not full-time commitments.

But this value, though I listed it as the top, is really the benefit of all things outsourcing.

So let’s move on and get to more exciting benefits.

You Don’t Experience The Time Consuming Hiring Process

Hiring sucks. Training sucks even more. Both are costly experiences that no small business wants to endure.

When you outsource your CFO, you’re up and running in a matter of hours. You don’t go through months of uncomfortable and time-consuming interviews.

Hiring and training cost small businesses a fortune. The situation is worsened when you end up having to let that CFO go (more on that in the next section).

You Have Less Exposure To Risk

Hiring is easy. Break out the pens, get some signatures on an offer letter, and it’s off to the races.

But what happens when you realize you’ve made a mistake? Well, it’s a long process, because you can’t just up and fire someone. You need to log their productivity, mistakes, attendance, and your responses to all of that. Otherwise, you risk being sued. The truth is, even when you adhere to all the formal processing in firing someone, you still risk being sued.

When you outsource your CFO, you can just make a call and the outsource company will switch things up for you. Or, you can just cut the outsourcing deal and you’re done.

What Outsourced CFOs Can Do

Disregard the clip above, I’m just trying to make a fun point!

So what can an outsourced CEO really accomplish (beyond “murders and executions”)?

It turns out, a whole lot.

Here’s a short essential list to outsourced CFO duties

  • Create a financial strategy
  • Manage company budget
  • Analyze corporate financial reports
  • Help to raise capital
  • Fill in after your CFO quits or is let go
  • Save your company money through cutting down on spending
  • Help with major acquisitions, mergers

Conclusion

Small business shouldn’t fear outsourcing, even for CFO positions. Outsourcing your CFO can lower company costs, improve productivity, and eliminate risks associated with firing a high-level employee. Many companies focus on CFO outsourcing, giving you a wealth of executive level options.

By |2018-12-10T08:55:27+00:00December 10th, 2018|Business Productivity|0 Comments

About the Author: