What Is The True Cost Of A CFO In Kentucky Outsourced Resource Vs Full Time Employee
Apr 07, 2011
In calculating the true cost of an employee, a business owner should first determine the value of the service of the position. What is it really worth to the business owner to have the expertise needed to fill the position in a way that is most beneficial to the business?
Some questions that you may ask in establishing the need for a CFO in your business may include:
- Do your bankers trust your internal financial statements?
- Are your financial statements accurate and timely?
- Do you have accurate monthly reporting to project the amount you will owe the IRS on April 15?
- Do you have accurate internal cash flow projections?
- Are your company assets protected by adequate controls?
According to Indeed.com the average CFO in Kentucky receives an annual salary of $104,000 per year. Add additional basic employer costs including taxes and benefits of 45% based on the Department of Labor and the actual annual cost is over $150,000 annually. This does not include recruiting, training and bonus costs that are normally associated with this position.
The truth of the matter is that many companies need a CFO but think they cant afford a W-2 employee. The good news is that you have an alternative to hiring a full-time CFO. B2B CFO provides a great alternative with experienced financial professionals and an extensive support system at affordable rates and on an as-needed basis.
These professionals not only provide the owner with a better understanding of the financial side of business but with strategic decision making tools, protection and oversight of company assets, assistance with lending relationships, quality and timeliness of financial information, tax strategies, pricing negotiations and development of procedures and policies, just to name a few.
So how do you, as a business owner, decide when to hire a CFO? Do you outsource or go with a full time CFO? What is the true cost of hiring a CFO?
As a business owner or CEO, you probably already know the answer to these questions. The question should be what is the cost of not hiring a CFO? The true cost of not seeking professional CFO services is the time lost of a business owner to focus on customers, new services and other core business issues necessary to business survival. It may be the cost of mistakes that could have been avoided with the knowledge of an experienced CFO. It may be the sacrifice of personal and family time. It may be the cost of a good night sleep or health issues from stress.
It may cost you the business.