CFO or Outsourced Accountant

Is it Better to Hire a CFO or Outsource Your Small Business Financials?

How many people are employed by your company? If you need to bring in a specific skill set to help with your business goals, then the first inclination is often to post a job opening and hire another employee. While there’s nothing wrong with hiring employees, it is important that you consider the needs of your business and all of the options that are available.

Not only will you take on the financial burden of one more salary to pay, but you also need to oversee the in-house management of an additional person. So, you should evaluate your motivations for hiring another employee, and also consider the benefits of outsourcing if it makes sense.

Today we are going to compare the options that you might be considering if you need help with your business financials: in-house bookkeeper or accountant, hiring a CFO, or outsourcing the tasks to an experienced team.

Be Prepared if You Hire Another Employee

If you are hiring an employee to help with business financials, then you probably need someone to assist with basic bookkeeping tasks, such as tracking transactions and cutting paychecks. On the other hand, a high-level executive can be helpful if you need assistance with bigger financial decisions.

It can be a hassle to go through the process of finding the right employee that will fit the scope of work that you need. Plus, you will need to ensure that a good onboarding program is in place to help the employee learn more about the in-house practices that you are using.

On top of the logistics of bringing another employee into the office, you also need to think about the monthly costs that will need to be covered. Most small business owners only think about the salary that will be paid. But, you shouldn’t overlook the additional costs that come with employees: employment taxes, benefits, office space, equipment, and more.

The salary is just the starting point… with many other cost burdens that will need to be carried by your company. These expenses go up exponentially if you are hiring a top-level executive instead of an entry-level bookkeeper. You will spend more money for an experienced CPA or CFO compared to the costs for someone who is only looking after the books.

Outsourcing for Efficiency and Affordability

In comparison, outsourcing gives you the access to the skill sets that are needed without the hassle of bringing another employee onto the team. You can hand the financial tracking responsibilities to an experienced team. But, there is no need to pay the costs of a full-time employee or benefits.

Many small business owners see the benefits of outsourced accounting. These services are growing every year, giving you more access to the best in the industry without the need to hire an employee. It is a win-win situation: accountants and bookkeepers love the freedom of self-employment, while small business owners can minimize costs and maximize profits.

What Skills Do You Need?

Whether you are hiring an employee or choosing an outsourcing team, you need to consider the tasks that should be addressed and the skills that need to be provided. If you don’t know a lot about business finances, then it can be hard to know if you should hire a basic bookkeeper, accountant, or CFO.

Here are a few questions that you can ask to help you identify the skill set that will fill your needs:

  • Do You Need Someone to Manage the Invoices and Paperwork? In some cases, business owners already have an accountant to handle tax filings. But, it can be a challenge to keep up with the invoices that come through the office each day. If you are looking for a person to oversee the filing and data entry, then a bookkeeper might be the right solution. There’s no need to pay someone with more experience if you won’t be using their services for financial analysis or tax preparation.
  • Are You Looking for Help with Tax Preparation and Strategy? Then, you will be best served to hire a CPA to oversee these tasks. A CPA knows the current tax laws and they can help with the strategy of minimizing your tax burden. Their job is to make sure that you are staying in compliance with the various state and federal regulations. In most situations, a CPA will keep the financial records and perform regular audits to ensure the quality of the reports. At the same time, they also take care of the reports and paperwork necessary for tax filing. If you face an IRS audit, then a CPA will assist with the proceedings.
  • Do You Need an Expert to Forecast the Future and Design a Financial Strategy Around Your Business Plan? Then, a CFO might be the right answer. CFOs don’t handle the busy work like invoice data entry or payroll processing. Instead, they are looking at the way the numbers are working out to anticipate the future of your business. A CFO can help with the capital structure of your company, as well as assisting with fundraising and relationships with investors. The goal of a CFO is to help a company sustainably reach peak performance levels, helping to improve company profits.


The benefits of hiring an accountant are if you need someone to oversee your business finances to ensure that the reports are accurate and you are maintaining compliance. A CPA can also assist with clarification of tax law, as well as preparing and filing the tax paperwork. If needed, these skills might encompass other financial tasks such as bookkeeping, payroll preparation, and more.

On the other hand, a CFO is needed if you require higher-level financial analysis. Don’t hire a CFO if you just need help with tax preparation! Instead, a CFO offers the skill set to bring insight and top-level strategy for the operations of your company. CFOs focus on the future of the business, forecasting, anticipated cash flow, and long-range planning to help the company grow. In comparison, CPAs are usually focused on reporting and accuracy of historical data.

One of the biggest mistakes that growing businesses make is hiring an accountant and assuming that they will get the full long-range strategy and business plan designs that should be coming from a CFO. Accounting services are perfect if you need tax strategy services. But, you need to tap into the expertise of a CFO if you need forecasting and financial strategy.

Best Solution? Regular Accounting with Occasional CFO Services

If you are running a start-up or small business, then the highest priority is to make sure that you are maintaining regular accounting services to keep up with the daily financial tracking and reporting. Your accountant can oversee company assets and offer the technical financial knowledge that you need as you are making decisions along the way. Accounting services are also essential to make sure that you are current with internal auditing.

To sum it up, most small businesses need accounting services for tax preparation and more. But, not all companies need to bring on a CFO. Instead of hiring a full-time CFO, consider the benefits of occasional consultations until your company is strong enough to carry the costs of a full-time CFO. In the meantime, don’t harm the future of your company by cutting corners on accounting services. These regular financial skills are essential to make sure that you are staying on track and keeping up with the cash flow demands for your company.

Accounting Services Will Boost Your Results and Decrease Your Stress

Most business owners will agree that hiring an accountant is one of the best decisions they made for their company. Your accountant can take responsibility for the financial reports. Instead of crunching the numbers, you can turn your attention to the business development activities that will help your company grow.

If you want to expand your offerings and help your company grow, then it is essential that you hire a CPA to assist with your tax strategy and preparation. These services are key so that you don’t have to carry the financial responsibility on your own. Plus, you will make better business decisions when you always have accurate financial reports to assess the current status and anticipated cash flow for the year.

Is it time for you to bring in the accounting skills that are needed for your small business? Instead of spending the cash on a full-time employee, consider the benefits of outsourced accounting. You will have full access to an experienced team while saving money on your monthly cash flow at the same time.

Our team at Easier Accounting specializes in these accounting services for start-ups and small business owners. We invite you to call us today to learn more about the options that can support your business goals. We will cater the services to match the needs of your company, helping to create the long-term success that you are working hard to achieve. Call today to learn more about the services that we offer: (888) 620-0770

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *