Why Choose Fractional Accounting Services Over a Full-Time Hire?

Now that Zeroed-In is a little over three years old, we have some experience to draw from. We’ve been on prospect calls where some form of the following question has been presented to us:

Why would we hire an outsourced accounting firm for $7k a month, when we can just hire someone to fill the role internally for the same amount?

I’ll be honest with you, I used to think the same way when I was the Director of Finance at a small tech company. However, I ultimately decided to hire consultants, and here’s why:

Let’s dive deeper into each of these to understand what I mean when we talk about fractional accounting.

The Advantage of Fractional Accounting Services

Comprehensive Skill Coverage

When you hire someone for $7k a month, you're usually getting one person with a specific set of skills. Let’s say you hire a Senior Accountant. They’ll handle some technical parts of the financials and help the accounting manager with other tricky topics.

But for the same $7k a month with fractional support, you can get a mix of skills.  It could look something like the following:

This way, you cover a broader range of skills and can adjust the work based on what you need at the time. No more worrying about your Senior Accountant doing tasks outside their expertise.

Ensuring Continuity and Implementing Best Practices

When you hire internally, you find someone good for the role and fit them into your existing processes. They’ll probably bring some initial value (that’s why you hired them!). But over time, they might get comfortable and stick to the same old ways, which can stifle innovation.

In contrast, fractional providers bring a ton of experience and should always implement best practices. They document both the current and proposed processes, making sure everything runs smoothly.

 Consultants focus on industries where they’ve learned and honed best practices, helping clients improve their game. They also don’t hesitate to challenge the status quo because they don’t work in silos, keeping things fresh and innovative.

Efficient Management and Career Development

Managing people isn’t easy and it takes a lot of time. It’s not just about keeping track of daily tasks, but also providing guidance, mentorship, and opportunities for growth. This can be really tough for managers who already have a lot on their plate. Poor management can lead to unhappy employees, lower productivity, and higher turnover rates, as team members may feel stuck or unappreciated.

With an outsourced accountant, you don’t have to worry about managing their career path—they take care of themselves. Their firm handles all their training and development, so you get top-notch service without the hassle of managing someone’s career. This way, you avoid the headaches of turnover and the costs of hiring and training new staff.

Scalability and Flexibility

Assume it’s quarter or year-end, and it’s all hands-on deck. There’s a ton of work to be done for the end of the period, but you still have your day-to-day job. How does everything get done? If you’re like every other company, you just work longer hours, increase the team’s stress, and hope you get through it relatively unscathed.

Now assume that you have a few fractional individuals, such as a fractional controller or a fractional CFO, already assisting your team. Year-end comes around, and you realize you’ll need one additional full-time employee (FTE )for a month to get year-end finished and prevent your team’s stress levels from rising. It’s as easy as getting an amendment to the original agreement for an additional FTE for only one month. No need to worry about training additional staff; the consultants will take care of that for you!

On the flip side, if times get tough and you need to cut costs, an outsourced accounting firm makes it simple to scale back the support. This way, you can navigate the rough patches without the stress of layoffs.

Conclusion

All in all, going with outsourced accounting gives you a flexible and expertly managed service that you have the ability to completely control. This approach covers a wide range of skills and makes sure you’re always up-to-date with best practices. Plus, it’s easy to scale without the hassle of managing a team or worrying about turnover. It’s a smart move that keeps your accounting in top shape without the usual headaches.

For many businesses, it can be incredibly difficult to keep up with the many accounting challenges that you face. Losing accounting team members can make this even worse. But the growing trend of Outsourced Accounting could be the solution for many teams. Take a look at what outsourced accounting is, key services offered, and top benefits with another article linked here or reach out to Zeroed-In Consulting help you stay on top of your reporting. Schedule a discovery call today to see how we can support your team.

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