Feb 9, 2023 Author: Accounts Junction
Business owners often face a dilemma while hiring a CFO service.
The confusion starts with whether they should hire an in-house CFO or opt for a virtual CFO service.
Before making this crucial decision, there are various things to consider, like operational size, business requirements, and much more.
Role of CFO
CFO stands for Chief Financial Officer, responsible for managing the financial aspect of the business.
The role of the CFO is to analyze the financial statements and books, financial reporting, prepare budget models, business forecasting, cost management, etc.
Apart from this, they also play a crucial role in deciding the capital mix and investments of the business.
Inhouse CFO vs Virtual CFO Service
Virtual CFO service is an outsourcing service that performs all the CFO functions remotely, not on designated seats in the company.
Technology has made managing finances much more convenient than before.
Comparing the Inhouse CFO services with the Virtual CFO services
Responsibilities
An in-house CFO takes care of the financial aspects of the organization. They are accountable to stakeholders, employees, and board members. But from time and time, they need assistance from the accounting and administrative team of the company.
VCFO extends all the service remotely, overcoming the barriers of time and place. They are experienced and qualified experts having their own team of professionals. They are available 24/7 to support your needs.
Accounts Junction is one of the best virtual CFO services in India backed by dedicated and qualified experts powered by technology and experience. We ensure our clients experience the best virtual CFO services aligned well with their requirements.
Productivity
An in-house CFO may take time to grasp your business and financial structure. They may not provide optimal productivity right away. It will again depend on their expertise, experience, and exposure level.
However, VCFOs can help to boost the productivity of the business spontaneously. Virtual CFOs have worked in different domains, updated with the latest tech tools and industry-specific knowledge.
If you want to increase productivity, go for Accounts Junction's VCFO service. We are one of the best virtual CFO services, offering 24/7 support around the clock to handle your finances.
Cost
One of the comparison factors is the cost of in-house vs CFO virtual services.
The large business house may require hiring an in-house CFO and afford the expensive fees. However, small businesses such as rental businesses have budget constraints, so outsourced CFO services are an ideal choice for them.
You must pay for the services you use when using VFCO services. It saves the overhead cost incurred in hiring a full-time additional employee.
Reliability
One of the drawbacks of VCFOs is they may not be as reliable as the traditional in-house CFOs. Business owners often face trust issues and security concerns over crucial business data.
There is the belief that outsourced CFO possess data theft and security concerns. Data security and confidentiality is the roadblock to outsourced virtual CFO services.
Certainly, this is not a concern with one of the best virtual CFO services in India- Accounts Junction. We strictly adhere to data security and confidentiality policies.
We have placed data encryption technology, restricted password access, and firewall security to keep data safe and secure.
