In the fast-paced world of startups, every second counts. The last thing you need is an accountant twiddling their thumbs for hours instead of working on your books. Working with a freelancer CFO has numerous benefits over hiring someone full time or using an accounting software package. A freelancer is likely to cost less in the long run and not require as much of your time as someone who works for you on a daily basis. In this blog post, we’ll look at some of the advantages of hiring a freelance CFO rather than bringing one on board full time or using an accounting software package.
You can find the right CFO for your company without making a long-term commitment.
When you hire a freelancer, you don’t have to make a long-term commitment. You can hire a CFO as a one-off project or as a short-term consultant if you’re short on cash but need help with your books. If you work with an accounting software package, you’re probably stuck with it for a long time since it’s tough to switch software programs. Plus, it takes time to find the right package, which can be disruptive to your business. Switching to a new CFO, on the other hand, is much simpler since you’re not changing the way your company is run.
You’ll have way more flexibility to find the best service at the best price.
Working with an in-house accountant or an accounting software package means you’re locked into that person or company. You can’t easily change them if they aren’t a good fit or if they’re overpriced. But if you hire a freelance CFO, you can change accountants whenever you want. If you find someone who charges too much or is underperforming, you can just walk away. If you work with an in-house accountant, you have to put out feelers, interview candidates, negotiate a contract, etc. It’s a major hassle when you’re busy running your own business. If you use an accounting software, you’ll likely have to pay a significant fee to switch to another package at some point.
You’ll get access to exceptional talent you might not be able to afford otherwise.
Most companies don’t have the budget to hire a CFO full time. Even if you could afford it, it’s tough to find the right person for your company. That’s where a freelance CFO comes in. You can hire the best and brightest accountants without having to meet a ton of qualifications. You just need to find the right person for your company, offer them a good rate, and they’ll do the rest.
A freelancer doesn’t require office space, equipment, benefits, etc.
The biggest benefit of hiring a freelancer is that they don’t require office space, equipment, benefits, etc. By bringing a CFO on board as an employee, you’re taking on a lot of responsibility. You have to pay for office space, payroll taxes (which can be costly), benefits, a retirement plan, etc. You’ll also need to provide the CFO with a place to work, a computer, and other equipment they need to do their job well. A freelancer doesn’t require any of these things, which can be a huge help for a growing company.
A CFO won’t have time for day-to-day tasks like reconciling your bank accounts.
Accounting is an incredibly complex job, but most accountants spend their time on higher-level tasks like analyzing your cash flow and forecasting your earnings. They’ll likely outsource the day-to-day tasks like reconciling your bank accounts, reviewing your credit card statements, etc. If you bring an accountant in-house, you have to trust them to handle these tasks. But if you hire a freelance CFO, they’ll have time to do everything themselves.
Benefits of Hiring an Accounting Software Package
Accounting software is cost-effective and easy to use, which is why many startups use it. Accounting software packages are designed to help you run your business. You can track your revenue, expenses, cash flow, sales, and more with ease. If you’re using accounting software, you can also link it to your bank account to import your transactions automatically. There are also many advantages to using an accounting software package over hiring a freelance CFO. They’re efficient, easy to use, and designed for businesses of all sizes. Plus, you can find a software package at a price that’s right for your company. You’ll likely be able to find a package that’s much cheaper than hiring an accountant.
Working with an in-house accountant or an accounting software package means you have a single point of failure. The accountant or the software might break or be hacked, which would put your company in a tough spot. If you hire a freelance CFO, you have multiple options. You can hire a freelancer, work with an accounting software, or use a combination of the two to get the best results for your company.