Complete Comparison Between In-house and Virtual CFO Services

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Complete Comparison Between In-house and Virtual CFO Services 

When the decision to hire Chief Financial Officer for a company arises, the decision between two pathways dangles – whether to hire in-house or virtual CFO services? 

The selection between both types of CFO entirely entices upon the operational area, size, and requirements of the organization. You have to foremost align your business requirements before deciding whether the best virtual CFO or in-house will help your business in the long run. However, to make a profitable decision, you have to fathom what sets CFO and VCFO apart? 

In-House vs. Virtual CFO Services – Which One Is The Best? 

When you are juggling between the decision of whether to hire the best virtual CFO services or local CFO, you can make a clear decision based on the following comparison –  

Defining In-house CFO –  

Chief Financial Officer is an integral part of a company with core responsibility to analyze the financial position based on the past and present data. The responsibilities of CFO are beyond the management of the financial resources of a company. They have to decide the capital structure of the company, finding a balance between debt and equity, along with determining when and where to invest. When CFO performs all his or her duties while sitting on a dedicated desk in the company, it is referred to as an in-house CFO.  

Defining Virtual CFO – 

VCFO is an outsourcing service that performs all the responsibilities of CFOs, but remotely. In the context of in-house CFO, VCFO services are highly economical and effective. Once you have acquired the services of the best virtual CFO services like CapActix, you have the facility to experience all the competent financial services virtually, which is very useful in the current situation. Virtual CFO can improve the cash flow and profit of your business organization without putting additional stress over your financial resources.  

Responsibilities –  

In-house CFO handles all the financial aspects of a business organization. CFO leads the accounting department of a company, and he or she is answerable to stakeholders, board members, and employees. Its responsibility of CFO to prepare a roadmap of the financial future of the company, for which they have the entire accounting team at their disposal.  

On the other hand, VCFO provides all the services of a CFO but delivers only when the company wants it. They offer the executive level financial planning, reporting, and strategic services to the company without the burden of hiring a CFO and other accounting staff. One VCFO can handle financial services of numerous businesses at one time as the virtual CFO have their own team of proficient accountants. Thus, you have to only pay for the services that you have rendered from VCFO.  

Responsiveness –  

When you have hired a dedicated CFO for your organization, you have to rely upon the expertise and knowledge of an individual to handle your finances. Now, one person can’t be good at all the financial aspects. Your in-house CFO might be good at speculating the future, but there’s no guarantee that he or she can make swift decisions based on market trends. Thus, your in-house CFO lacks the responsiveness to adjust according to the situation.  

The best virtual CFO has a vast experience of working under different market conditions; thus, they can provide the best services on your business requirement. On the top, VCFOs have a complete team of competent and experienced accounting professionals to support them so they can handle complicated financial situations efficiently.  

Productivity –  

When you hire an in-house CFO, a person at least required 2-3 months to thoroughly understand your business and financial structure. Meanwhile, you can’t expect your CFO to offer the optimum level of productivity. And, a few months of low productivity can take your business a few years back.  

However, VCFO can speed up the productivity of your business instantly. Virtual CFOs have wide experience in multiple different domains, along with the knowledge of the latest technologies. Thus, when you are aiming to enhance the productivity of your business organization swiftly, you have to acquire responsive and analytical VCFO services.  

Empowering Decision Making  

Your VCFO can assist in making data-driven decisions. It is a crucial part of business organizations to make investigative and profitable decisions related to potential business investments. The outsourced CFO has strong business connections and knowledge of various industries; thus, they can help in making accurate and low-risk investment decisions. But, in-house CFO comes with a limited set of skills and networks, so they can’t offer the high caliber decision making power to the business.  

Support of a Team  

When you are bringing a CFO on board, you are solemnly bringing a person in your organization. That means limited skills and the ability to handle a problem. But, when you hire VCFO services for your organization, you are connecting with an entire team. A team full of competent, experienced, and analytical accounting professionals who can provide a myriad of solutions to handle a problem. Thus, you can take leverage from the expertise of the different professionals by paying for one service. Nothing is more economical than this for a business organization 

Remote Reach  

A virtual CFO is exposed to global accounting standards. If you hire VCFO from India, you can easily expect them to provide services in the globally acceptable formats, which is very helpful during international business deals. VCFO follows the global standards; thus, they can help you in taking your business overseas. However, the ability of your in-house CFO related to gloat trends is limited.  

Cost-Effectiveness  

There’s no doubt that the services offered by virtual CFO are far less expensive as compared to in-house CFO. Large business organizations might have the capacity to afford the in-house CFO, but SME and startups don’t have such resources. But, when affordable financial solutions in the form of VCFO are available, no company wants to gain extra financial burden in the form of an in-house CFO.  

Conclusion  

From the detailed comparison between the CFO and VCFO, it is hard to find a winner because both have their own set of advantages and disadvantages. In-house CFO offers dedicated and physical services, whereas VCFO comes with economic, flexible, and effective services. Thus, it completely depends upon the business requirements whether to hire in- house or VCFO? 

For economical and effective virtual CFO services, you can explore CapActix services on email – [email protected] or can call on +201-778-0509.   

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