The growth of your SaaS company also brings along a whole slew of finance and accounting challenges, and continuing with your existing accounting & finance infrastructure will make your stay on the treadmill forever. This results in mistakes and inconsistencies, which are enough to upset your apple cart.
Constant growth also calls for experienced SaaS leadership, and that’s where outsourced CFO services come into the picture. Choosing to hire an external CFO makes more sense than hiring an in-house CFO, as the former offers a plethora of advantages.
1. Access to interim services
Hiring an external SaaS CFO ensures you have an experienced CFO until you hire a full-time CFO for your organization. CFO outsourcing companies ensure that your SaaS enterprise has access to knowledge, resources, and expertise in the form of an outsourced CFO.
Compliance management is best managed by a CFO who knows all the regulations in and out. Hiring a CFO for your SaaS enterprise will ensure 100% compliance with all the norms.
An outsourced CFO not only manages sales tax liabilities but also maintains complex state sales tax needs.
3. Strategic planning and data-driven decision making
High-level leadership on a fractional basis is another value-added advantage of hiring a SaaS CFO. By hiring one, you will not only prevent inconsistencies but also drive strategic planning for data-backed decision-making.
At every growth stage, you would need to develop fundraising strategies for SaaS capital. Besides, defining departmental & organizational SaaS metrics also becomes important. Outsourced CFO services play an instrumental role in keeping all these boxes ticked for your company.
4. Objective insights
CFO outsourcing companies have a deep bench of expertise, and hence when you outsource CFO services, you don’t just hire an individual but a team of experts. A CFO provides your company with objective, unbiased and transparent insights about your finances which an in-house CFO might not be able to bring to the table.
Finding and reporting a problem objectively is important to nip it in the bud, and an external SaaS CFO plays a vital role here. Unlike an in-house CFO, who might be hesitant to report a problem because of several reasons, such as relationships within the company and personal ties, an outside CFO will not hesitate to bring a problem to your attention.
5. Fast business growth
Another significant advantage of hiring one of the best CFO outsourcing companies is the fast business growth of your SaaS enterprise. Businesses have short-term contracts with companies offering outsourced CFO services, and they work on a fast-paced model that’s designed to manage seamless transitions and achieve fast business growth.
Understanding your business value drivers is one of the priorities of the SaaS CFO, and they have the necessary expertise, resources, and experience for value optimization. By offering a fully-integrated solution that’s highly cost-effective as well, an external SaaS CFO brings true value to your business.
As a business, you will be able to free up funds that could be utilized in hiring a sales manager instead of hiring an in-house CFO. This will help you increase your annual recurring revenue, which is a crucial metric of every SaaS business.
Hiring a CFO outsourcing company brings a myriad of advantages to your SaaS enterprise. From enhanced efficiency to compliance, cost-effectiveness, and measurable results, the advantages of hiring an outsourced CFO are infinite. If you are in the process of hiring an external SaaS CFO or have any questions about it, FinAccountants will be more than happy to answer your questions.