One of the most difficult challenges CEOs and business owners face is letting go of their control over every piece of the business – from HR to accounting and finance. But whether you hire an internal employee to take over a business function, or outsource a position, it’s a necessary part of your company’s growth. The practice of outsourcing the C-Suite is growing, and for good reason.
Read on to learn why business leaders are turning to outsourced accounting, an outsourced CFO, and other C-Suite executives:
Time is Your Most Important Asset
I don’t just mean this in a philosophical way – As a business owner, time really is the greatest asset you have. Any number of hours that you spend in meetings, working on payroll, or trying to decipher financial terms are hours that you could have spent making money and growing your business.
For the next week, record how many hours you spend on financial or accounting tasks. Then multiply those hours by what you figure your hourly rate is (i.e. how much your time is worth to you and your business). This is how much time you are spending and money you’re wasting on tasks that prevent you from making the most of your precious time.
Not only is it a waste for the CEO to be doing accounting or finance work if they don’t consider it a personal strength, but whatever you’re debating outsourcing is probably not fun. You’re not alone though – A study demonstrated that 40% of small business owners said taxes and bookkeeping are “the worst part of owning a business.” Even more reason to outsource your headaches.
The Cost of Hiring an Internal C-Suite Employee
Small to mid-sized businesses can’t always afford to hire a full-time internal CFO, CMO, or accountant. There can be lulls throughout the season when having a full-time CFO or accountant doesn’t make sense.
By outsourcing your important roles, you can afford a more qualified expert in that area than you could if you were to take someone on full-time.
It’s Not Just Bookkeeping
If you are outsourcing a C-Suite executive, saved time and resources are not the only benefits. Your new exec will be able to consult you on strategic matters as well. They have experience helping other businesses succeed and become more profitable, and can apply their knowledge to your company. A high-level financial expert will provide customized solutions and advice that will be extremely beneficial in the long run.
Mistakes Can Be Costly
The last thing you need is to be audited by the IRS because you made a mistake on your taxes. Or maybe you were not tracking your finances correctly, and the business is suddenly in the red. A small oversight on your part can cost your business. It’s often better to play it safe by hiring help than risk the health of your company.
Face It, You Can’t Do Everything…
And nor should you be doing everything. That’s a huge loss of your time and resources. No one is good at everything. It’s your job to figure out what your strengths are and go all in on what you’re best at. Good business is recognizing your company’s weak areas or time consuming tasks and finding a better solution. For example, many companies recognize that finance and accounting are time consuming tasks that aren’t in their wheelhouse, so they outsource their CFO and bookkeeping tasks.
In addition to better utilizing your time, outsourcing complicated and intricate tasks such as bookkeeping and finance can be a huge stress relief for owners of growing businesses.
Thinking About Outsourcing Your C-Suite?
Outsourced accounting, CFO, and other outsourced C-Suite positions are gaining in popularity. You might find yourself joining the trend to reclaim your time and save money while gaining expertise to help you grow your business.