Just about anything that can save your business money, without compromising your services or products, is good for your business. The less you spend on overhead and the cost of goods, the stronger your bottom line will be. Although hiring a full-time, in-house employee might not be a big deal for a larger corporation, the cumulative expense can break a small or medium-sized business — especially if that full-time, in-house employee expects the salary and benefits of a certified public accountant. That's a big impact on your business's free cash flow.
So, what can you do when your business's bookkeeping and accounting needs outgrow the efforts and knowledge of you and your bookkeeper? The best way to scale your back office at the same rate your business is growing is with an outsourced accounting professional, such as a Virtual CFO.
How Does SBA CPA Save You Money?
1. You Won't Need to Hire a Full-Time, In-House Employee
Many business owners mistakenly assume that outsourcing their business's bookkeeping and accounting tasks will wind up being too expensive. Instead, they turn to part-time bookkeepers, their tax accountant, or perhaps hire a full-time CPA to work for their company. While a part-time bookkeeper can serve you well and work well with an outsourced CPA, the other options aren't always good for business.
A tax accountant's expertise is in tax accounting. He or she can prepare you for filing taxes and ensure you're compliant, but they don't have the time or experience to dedicate themselves to organizing your company's management accounting system.
Good full-time employees, especially certified public accountants, don't come cheap. Consider the total an employee costs you in additional costs, such as paid time off, insurance, retirement plans, office space, coffee, training, and more.
Additional cost savings can be found in the fact that you probably don't need a full-time CPA in your business. As a result, you'll be paying for time when your new company accountant doesn't have any work to do.
With a Virtual CFO, you'll enjoy the benefits of a full-time employee without the huge price tag. And we'll grow with you until you do need a full-time CPA. A great "problem" to have!
2. You Won't Try to Do It Yourself
Consider how much you actually pay yourself per hour (whether you're on a salary or not) and add in the small perks you enjoy as the owner of your own business, like writing off some of your personal expenses.
If you're like most business owners, we hope you're making quite a bit more than you'd pay someone who's carrying out basic bookkeeping functions, such as managing accounts payable, receivables, and balancing statements. As owner or CEO, your time and hourly rate are worth too much to spend it on daily bookkeeping tasks. To make the most of your time and increase your financial gain, you should be focused on what you do best — growing your business.
Hiring a Virtual CFO will not only save you money by the hour but will also improve the financial management of your business. The expertise of a Virtual CFO will help you identify unnecessary costs, time leakage, and operational redundancies to ensure you're running a smooth, streamlined, and cost-effective company. Even if you have the bookkeeping and accounting know-how to effectively handle your back office for management accounting purposes, you shouldn't focus your attention, time, and energy on that slice of your business when your talents are needed to grow.
As CEO or owner, your time and attention should be spent on your business's primary income drivers, which are your people and what it is you're selling.
Imagine What You Could Do with Extra Cash
With the cost savings from your Virtual CFO, you can reinvest in your business, pay bonuses, or enjoy having a cash cushion in savings. You might even take that bucket list trip you've been dreaming about.