Should I Outsource or Bring In-House?
You’ve thought long and hard and asked all the right questions during the ongoing dialogue in your head about how to manage your company’s finances. But the question of whether to build your accounting team internally or with CFO services is as much about the way your industry works as it is about saving money or even planning for growth. Consider when in-house or outsourced services make more sense.
When is in-house accounting and CFO services the best fit?
In-house accounting services are sometimes the best answer. Maintaining an internal team is usually ideal for specific types of industries. For example:
Industries That Are Paper-Heavy or Low-Tech
For paper-heavy industries, there’s endless recordkeeping—and lots of actual paper, including bills, receipts, and miscellaneous documents. An in-house accountant who knows the day-to-day is usually best equipped to manage the madness.
Companies That Are Inventory-Dependent
Because outsourced accounting experts aren’t on-site to make note of issues as they occur, an in-house accounting department makes more sense for businesses that rely heavily on product inventory. These details impact your financial health and planning, and without this intel, even the best accountant couldn’t accurately manage your books externally.
What industries might benefit from outsourced accounting and CFO services?
Outsourced accounting is all about steady collaboration. Organizations do really well with outsourced accounting services if they are:
Businesses That Are Tech-Savvy
When you hire outsourced accounting services, your team isn’t right down the street. Companies that are receptive to collaborating via apps and digital tools thrive in external accounting and CFO partnerships because it’s easy to coordinate in real time.
Companies That Are ‘Heartbeat’ Oriented
Businesses that can run on a “heartbeat”—or a steady schedule of activities—excel in outsourced accounting services relationships. If your business doesn’t mind a calendared cadence where your team follows a strict schedule of activities, outsourced accounting and CFO services could be a fit.
Why does onboarding take at least 90 days?
If you take the plunge and pursue an outsourced CFO service solution, remember one thing: Results take time. The first 90 days center around onboarding, during which time your burning financial concerns may take longer to address as your information is organized and your team gets up to speed.
Facilitate this 90-day onboarding process by organizing your books and providing your new team with tools for success:
- Grant access to key systems.
- Provide internal documentation.
- Share email credentials and company directory.
It takes at least 90 days for your own new hires to get into the swing of things. Set your expectations accordingly to allow your new CFO services partner the same learning curve.