In today’s world, Accounting has become among the most frequently outsourced tasks of a business. Even the most experienced business owners are usually not knowledgeable nor qualified to manage the books on their own.
Not to mention, valuable time and effort are saved when these duties are outsourced. Allowing owners and managers to focus on more important functions of their respective businesses and companies. Outsourcing also protects them from the liabilities and helps them with the bottom line.
In recent decades the accounting world has largely been dominated by the Big Four. And although these big four firms continue to maintain a dominant role in the market, there is a fast growing market for small firms providing outsourced CFO consulting services. With the huge increase in Digital Accounting, businesses have more options than ever to outsource their needs. It’s now common for small businesses to outsource their CFO role.
In the past half a decade or so, CFO services have begun playing a larger and important role within the Accounting industry. Offering services on a “as needed” basis, these firms give business access to professional expertise, while saving them the time and costs of developing their own accounting departments. And quickly enough, outsourcing CFO services are starting to become a no-brainer for many businesses.
Here are some ways CFO services differ from the traditional big accounting firms. By understanding how they operate and what they offer, you can determine if outsourcing your needs make sense for your business.
|TABLE OF CONTENTS|
|A Difference in Approach|
|Accounting Operations in a Digital World|
|The Best of Both Worlds: Reduce Costs Without Compromising Quality|
|Solutions Uniquely Catered to Your Needs|
|Finding a CFO Service That’s Right For You|
A Difference in Approach
Working with big firms usually means you have to go all in. That means you have certain services in your service agreement which you will never require. And you don’t have the option to use these firms on an “as needed” basis. All this leaves your business with a large accounting bill each month, while being unable to make full use of all the available services.
Using an outsourced CFO allows you to use their services on an “as needed” basis. That means you only pay for the services you need and use. And as the needs of your business grow and you require more diverse services, you get to scale up according to the unique needs of your business.
At first, you might just need help with taxes. As time goes on and your business starts to grow, you might want help managing additional books, or setting up your first eCommerce store. Later on, you might require budgeting for long-term projects, or various other services. The point is, you only use and pay for what you need.
Accounting Operations in a Digital World
The world of Accounting has not been an exception to the digital revolution. These days, a large number of Accountants operate almost entirely in the online space. This has allowed them to serve a diverse range of clients beyond their geographic location.
Thanks to advances in the digital world, your Accountant can access your records and provide you Advisory services from anywhere in the world. Managing, updating and reporting on your financials have never been easier.
All of this has also reduced overhead costs for businesses, as they no longer need to set-up in-house Accounting departments within their organizations.
The Best of Both Worlds: Reduce Costs Without Compromising Quality
Hiring the right professionals can help you reduce the overall costs of running your business. Hiring a CFO who you only pay for the services you need and use, helps your bottom line even further.
Your outsourced CFO can dig deep into your financials and find your business ways to save money, which you would have realized otherwise.
The right CFO would also be familiar with tax credits and tax deductibles, allowing you to strategically reduce the amount you owe to the government.
Such Accountants will also be adept at avoiding an audit. You end up getting the best of both worlds. An expert eye who you only “pay as you need”.
Solutions Uniquely Catered to Your Needs
Working with a CFO Service firm means you’re able to pick and choose your services “a la carte”. You get sophisticated accounting solutions catered just for you. With all other things being equal, this means you are much more likely to be terribly satisfied with your outsourced accountant.
Finding a CFO Service That’s Right for You
As you research different firms to find the right fit, look for CFO firms that have experience in serving clientele just like your business.
Once you have a list of CFOs services you would potentially want to outsource your Accounting to, take the time to ask them the right questions. You’d want to ask about pricing, their experience, and ways they can add value to your business in general.
No matter what your business or industry, an expert Accountant can go a long way in adding value to your business. And while many older businesses still rely on the big four accounting firms, newer businesses (CFO services) can offer a ton of value in their own unique way.
It’s no surprise that many new businesses are choosing digital, scalable, fractional CFO services, over the traditional big firms.