One of the biggest reasons why firms outsource CFO services is simply because it’s cost effective. For a fraction of the cost, firms are able to hire part-time CFO’s and get some of the same benefits of having a full-time CFO. So, smaller firms striving to be cost effective are certainly a big factor behind outsourcing CFO services. Another advantage of outsourcing CFO services is to have a new set of eyes on an old set of problems.
A phenomenon that occurs quite often in life is when those on the inside simply can’t see the solutions like those on the outside can. By inviting someone new to come in and take a look, someone new brings a completely fresh new perspective, not weighted down by the old problems. Someone with a fresh new perspective can often spot solutions to problems quickly. Another benefit from outsourcing CFO services is when you choose a firm whose executives have a finance background.
Firms often experience better financial guidance from CFO’s with a finance background, versus a CFO with an accounting background. Accountants are well-trained to input the numbers correctly, whereas finance executives are well-trained to interpret the numbers correctly. So, this is a real advantage when you have a CFO with a finance background. And finally, another benefit from outsourcing CFO services is when you choose a firm whose executives are well-trained in financial analysis.