5 Benefits of Hiring a Virtual CFO vs. an In-House CFO
There are a number of advantages and challenges that come with adding a CFO to your team. Should you hire someone full time, or is a part-time CFO all you need? Do you need immediate results? Is cost a major concern?
Luckily, virtual CFO services offer several benefits to simplify your accounting needs.
1. Virtual CFOs are less expensive.
Hiring an in-house CFO means taking on a full-time employee and all the responsibilities that come with it, from paying them a year-round salary to covering their benefits—not to mention the human resource management expenses that accompany training costs.
An in-house team is also in charge of their accounting tools and software, further adding to the costs you’re responsible for.
Get access to the same level of expertise and industry knowledge—all delivered remotely. Hiring a trusted partner means you get access to their suite of tools and resources included in the price. You’ll only ever be responsible for the time and deliverables you need for your business, making for a more efficient price.
2. Virtual CFOs have cross-industry experience.
Due to the high-level strategy required for the role, most in-house CFOs will remain with the same company for most of their professional lives. While others might have a few more employers over the course of their careers, internal CFOs usually have limited experience isolated to one industry.
Bring executive-level insights to your company that not only focus on your specific industry but also include an understanding of tertiary industries that might influence your field.
This is even more important when you consider the additional roles that CFOs have taken on in recent years. On top of the traditional financial responsibilities associated with the position, one survey found that 82 percent of CFOs are also being held accountable for the overall strategic direction of the company.
Virtual CFO services have seen a little bit of everything, and they use that perspective to solve problems unique to your situation. Have a problem that’s a real head-scratcher? It’s likely something they’ve encountered before. And if it’s not? Pulling from a wide variety of experiences means they can offer a quick and efficient solution.
3. Virtual CFOs have access to a CFO team.
You only need to hire a single CFO, but one person only has so much time and energy they can use to meet your expectations. What if there’s something your in-house CFO doesn’t know? Your company now has a blind spot, and you may miss potential opportunities.
It’s also no easy task to fill the shoes of a quality CFO. If they become sick, leave the company, or retire, you may be facing a financial downturn while trying to fill the position—especially since you need to train a new employee and get them up to speed on the current state of things before they can begin.
While virtual CFO services typically assign a single point of contact to provide a more personalized experience, you also get access to other resources. For one, your designated CFO can turn to their peers behind the scenes if they require additional support or expertise to efficiently solve your problem.
Plus, if a team member is out sick or otherwise unavailable, service isn’t disrupted. Your partner company will ensure the transition happens smoothly and out of sight so that you won’t even notice the change.
4. Virtual CFOs have industry credibility.
Since it’s likely that the CFO you hire has only worked for a small number of companies beforehand, they might also have a limited reputation and professional network to rely on. If they decide to try and make a name for themselves by experimenting with your finances, it’s your company that suffers any negative consequences, such as a loss of revenue or accounting errors.
Virtual CFOs are well-rounded, having worked with a wide range of industries and clients, and come with a proven track record of success. They have earned a far-reaching reputation and can leverage their network, from lenders to venture capitalists, to help you grow.
5. Virtual CFOs focus on core goals.
In-house CFO services will dial in on your needs and prepare a financial road map for your company. Using past and present data, they will propose when and where to invest, find a balance between debt and equity, and decide the capital structure of the business.
In addition to their other responsibilities, they may provide coaching or even oversee other members of the accounting team.
A remote-based CFO does everything an in-house CFO offers, often including executive-level financial planning, reporting, and strategic services. If you have an internal accounting team, they can also provide coaching to help keep your team on the same page.
The best part is that you get all these services on demand. Virtual CFO services do only what you want when you want it, meaning you can spend as much or as little as you want to optimize your business’s growth.
Optimize Your Revenue with Virtual CFO Services
If you need a CFO but don’t want to be saddled with the high costs associated with a full-time executive-level hire, virtual CFO services provide a perfect solution. When you choose a trusted partner such as Ignite Spot, you also get access to an entire network of employees, including other CFOs, that can tailor solutions to fit your specific business needs.
Could Ignite Spot virtual CFO services be the right fit for you? Explore our services and choose the plan that meets your needs.