Why Should Startups Outsource CFO duties?
With technology consistently presenting entrepreneurs with a multitude of new opportunities to monetize their ideas, it is not surprising that a lot of industries have recently experienced a boom in the number of startups springing up regularly. What a lot of founders fail to realize is that getting a business through its early stages is not an easy game. They cannot juggle every single operation associated with running a company and still expect the business to be an efficient and effective one. It is therefore vital that startups outsource their those operations that are prevent undivided focus on the core aims and objectives of the new company. One of such time consuming areas of work is a company’s bookkeeping and financial management — extremely crucial for growth and success but very tedious and expensive to carry out in a constructive manner.
Firstly, time and financial resources are of utmost importance for startups. You cannot feasibly expect to go through the time consuming and effort intensive tasks of recruiting, hiring and managing a skilled and competent CFO, and then pay them a market competitive salary too. Simply brushing over this process will result in poor accounting services and little to no financial management. You need not spend unnecessary resources or compromise on the services you receive to have practical financial services; outsource this operation to a credible company with economical packages (e.g. Madera.ai).
Secondly, in resorting to a third party for CFO functions, you also get the perks of sound financial advice that in-house accountant personnel may be unable to provide. Outsourcing these services especially come in handy when you and your startup require an urgent advisor and mentor to guide you through difficult financial times and maximize your profitability when it seems improbable. It is not uncommon for companies like Madera.ai to also offer sound advice to startups along with accountancy services.
Outsourcing your accounting work can make all the difference in you receiving thorough, comprehensive and accurate financial statements as opposed to unprofessional, disorganized ones resulting from inept CFOs hired in-house, particularly if you’re attempting to save costs in the HR department. It should be one of your highest priorities to stay updated with your company’s finances so you know which way to direct or redirect your business in for maximum revenues.
Another perk of outsourcing CFO duties particularly for small businesses is that the quality of financial documents you receive gives you very advantageous edge when attracting investors or venture capitalists to invest in your startup.
A lot of startups crumble during their nascent stage owing to poor bookkeeping and haphazard management of funds. Companies can thrive and drive themselves forward with inexperienced CEOs but the possibility of any progress, growth or profit is paled when you don’t have an experienced CFO to manage your accounts and consistently offer you sound financial advice.
If you happen to be a startup owner and therefore are looking to outsource your CFO operations, then it is highly suggested you choose an accounting firm like Madera. Our accounting and advisory services are provided at extremely affordable rates, designed specifically for startups constrained by monetary and time factors.
We are also offering a FREE 30-Day trial (no credit card required) to get the bookkeeping experience to all growing and young businesses/startups.