Worrying about the finances of your company is not the most exciting aspect of running your business. That lies in the sales, the revenue generator, everything that makes your business fun and interesting. It is why you created the business in the first place. A love of the subject but also a way to earn some cold hard cash and to live doing what you love. Managing the accountancy practices of the company aren’t what you envisioned what you wrote up a business plan, for this reason you need to outsource a CFO.
You have spent years dreaming about setting up your business. There were time when you thought you had the eureka moment, only for that moment to pass or for your idea to fall flat on it’s face, fortunately before it even got up and running. You didn’t even get to the stage where people could tell you know, you knew in your head that your ideas wouldn’t work. To have the thoughts of whether to outsource a cfo or not felt like something that was a million miles away from becoming a reality. Then one day, you had the thought that has made you more money that you ever thought possible. It has created more stress than you ever thought possible but that is besides the point. Now, you must decide whether to outsource a cfo or not. Of course, there are two sides to this coin, the advantages and disadvantages, some of which are outlined below.
If you outsource a cfo you can kiss your worries about finances goodbye. Knowing what you need to do to stay on the right side of financial law can be difficult at the best of times. There are multiple rules and regulations that you need to abide by to do with financial reporting, tax and GST. Using a third party to help you understand the laws and to make sure everything is done by the book is something that you need to do. To outsource a cfo will be one of the better decisions you make with your life.
If you outsource a cfo to a different country, there are numerous benefits and risks that go along with it. Relying on the expertise of someone who is not from and does not live in a country to know the laws of the land can be something that will come back to bite you. If they were living in the country of your business there is less chance of a mistake occurring, while they live in another there is always the chance they can be left out of the loop. While professionals will always be networking and keeping each other up to date in the country this may not happen for a financial professional living abroad.
To outsource a cfo is a big decision, just like outsourcing any part of your business. You are losing expertise and knowledge in a given subject, losing out an any knowledge transfer that had been occurring throughout the business. In a start-up stage of a business it can be advantageous to remove any extra worries from your table but at a time when you need to maximize profits and continue the early stages of development, having that expert with numbers sitting in the office is just as advantageous.
To outsources a cfo or not to outsource a cfo, the age old question that has been around since the dawn of entrepreneurship. When you make the decision that doubt will always linger about if you made the right decision but as times passes, hopefully your decision will have been proved right.