Outsourcing CFO Services for Your Small Business Could be the Secret to Success
Okay, your tiny business that started from your couch just made you six figures. You never thought your passion and hobby would make you a CEO and CFO overnight, but here you are.
But wait, you’re the Head of Marketing now? And the CFO? Can you even remember the last math class you took? Who’s supposed to write the employee handbook? Putting on multiple hats can pull you in many directions, and if you’re not careful, you could lose sight of what got you here in the first place. And hiring a bunch of people, you might not be able to afford and aren’t sure how to evaluate or manage? That doesn’t sound fun, either. Don’t fret, though; there is a simple solution for you. Outsourcing!
Outsourcing might seem like a scary term. You might immediately think of large companies moving half of their operations overseas or handing over important work to people who know nothing about you or your business. How do you know if you should consider outsourcing CFO services?
I need help, right?
As the CEO of a business, it is important to focus on the main thing as well as to manage anyone you have already. Unfortunately, some important tasks and responsibilities may get pushed to one person, and, occasionally, that one person ends up being an admin or spouse who isn’t fully qualified for the job or an employee who’s getting everything dumped on him/her. Here are some clues it might be time to consider outsourcing.
- You’re spending too much time on accounting processes. Invoicing goes out late, you haven’t reconciled your bank account or credit cards in months, and maybe you’re not really sure if you’re making money or not.
- Your business is growing, but you know you could reach more people. Sure, Instagram and Facebook are a good start to marketing yourself, but it might be time to outsource if you want to reach new audiences effectively.
- Your last hire’s computer isn’t working, and you have no idea why. Being the help desk person isn’t what you dreamed of when you took the entrepreneurial leap. Time to let someone more technically inclined handle this for you!
- You fear fraud might be happening. According to an article from Business News Daily, “Businesses with fewer than 100 employees are at much higher risk for employee fraud than larger corporations are.” So don’t put the financial burden on someone who may not be 100% qualified. Call the pros.
You get the drift now, right? Don’t try to be the jack-of-all-trades. Do what you’re good at and let your hard-earned cash go toward outsourcing some of these core functions to a team who can manage this area of business for you.
What are some core functions I can afford to outsource?
- Accounting and CFO Services. If you’re not a financial expert, then it could take a lot of time to learn the processes and compliance standards your company must meet. If you outsource to a team of certified accountants, it will increase efficiency and save you money.
- Marketing. Again, you need to grow your business, and instead of researching the best methods, research a marketing firm that can do it for you. These firms are filled with professionals who can help you create strategies and provide helpful ideas to get your business out there and reach your target audience.
- Human Resources. Hiring, onboarding, or even managing your team can all fall under human resources. The most common type of outsourcing would be to work with a recruiting service to bring you, exceptional candidates.
“When you outsource work, you don’t have to pay for salaries and insurance for your employees (if another benefit plan does not already cover them), which means that there will be fewer overhead costs involved when hiring freelancers or contractors. You also don’t need to spend money on office space, equipment, or travel expenses if your freelancer doesn’t work from home or in-house office space doesn’t suit their needs.”
– Chris Kille, CEO of Payment Pilot and Elevate Outsourcing
So now you have a few ideas about outsourcing and probably some preliminary thoughts about which functions make sense, but you must do your research and hire reputable businesses. Be sure you call around and talk to a few firms. Ask for client references. Make sure they understand your goals and are excited to work with you. Make sure your contract has a reasonable termination clause if things aren’t working.
Outsourcing isn’t as scary as you may think and can be key to both running lean and having great resources to help you as you grow!
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