During the early days of a small business, the proprietor is more interested in the sales and production aspects. Rightly so! Those are the wheels that set a business in motion. The proprietor thinks that once these aspects have gained momentum, he/she can look at other aspects, like Finance. The choice between outsourcing the finance function or having an in-house one must exercise by knowing all the facts.
The advantages of hiring a specialised service provider for finance are:
- A newly formed company may not have the resources to hire a full time qualified person to take on all aspects of finance.
- By hiring a firm, you are hiring a whole range of experts in the field.
- The need of the hour is not just accounting and book-keeping but handling financial strategy for the business.
- When the business starts to grow and has fund-raising needs, the VCFO will be able to rise to the needs of the business immediately.
- VCFO with their wealth of diverse experiences, help you draw out meaningful insights you may not catch on your own. It may be a make or break strategy
- As a VCFO will be working with varied industries, the knowledge that comes with it can help your business with adjacent insights.
- Last but not the least, the VCFO is a cheaper option than hiring a whole range of finance professionals. Further, the activity of hiring the professionals as and when they quit is also non-existent.
Additionally, VCFOs can help the business even before the entity is created. The whole discussion of what kind of entity must be formed becomes an important because varied entities have different benefits and finding the right fit for the business can help save a lot of time restructuring in the future.
It can be thus concluded, till a business can grow to the stage where they can afford to have their own financial department, it makes a lot of business sense to tap into the vast financial expertise VCFO can provide.