Is hiring a part-time CFO or accounting freelancer a viable option for your business?
Entrepreneurs by nature are overachievers. They believe in what they are doing and believe that they can do it all. But the reality is that once an early stage company gets some traction, all the entrepreneurial spirit, talent, and energy drinks in the world won’t be enough to tackle the vital details of every aspect of the business.
This is particularly true when it comes to managing a company’s books. Many start-ups recognize this fact, but also realize they don’t have the resources to staff a full-time, in-house finance and accounting team. That’s why an increasing number of young companies are outsourcing their accounting and finance duties to third-party vendors. It’s a smart move on several levels.
Five reasons you should consider outsourcing your growing company’s finance and accounting:
- Time is money, and managing money costs you time.
Every minute you spend in front of a spreadsheet, managing ledgers, or handling other accounting functions is a minute you are not spending on generating revenue. Outsourcing finance and other back office services gives you a turnkey solution that simultaneously frees up valuable time while also giving you peace of mind that crucial tasks are not falling through the cracks.
- A full-time finance team doesn’t come cheap.
Accountants and other financial professionals expect to be compensated well, and when hefty salaries are accompanied by benefits and additional overhead, an in-house finance team can be more liability than asset. - Top talent is delivered straight to you.
In the “gig economy,” top outsourcing companies now attract and connect you with exceptional talent without you having to spend time sifting through a mountain of resumes, pay headhunters, or engage in a lengthy, frustrating hiring process that may not get you the right fit. Outsourcing brings the best talent directly to you. - Segregation and controls.
Bad things can happen when one person – and only one person – oversees all aspects of your accounting. Mistakes can be made without a second set of eyes, and having the same person doing payroll and A/P while also reconciling your bank and credit card statements is a recipe for potential fraud. With outsourcing, you can affordably get a team of finance professionals who can work collaboratively to minimize the likelihood of errors or malfeasance. - Scalability.
As your company grows, so too do your accounting needs. Conversely, if you hit a few bumps in the road, you may need to scale back your costs as those needs change. Hiring and firing in-house staff as your business navigates an ever-changing business landscape is inefficient and time-consuming. Outsourcing your accounting functions gives you flexibility and an infinite capacity to scale up or down.
There are many accounting and finance outsourcing companies which work with start-ups and provide them with top-notch talent, such as Toptal.com. As you look for ways to grow your business, looking outside your office for the resources to manage your finances can often be the right move.