As always, when looking for vendors, shop around – but avoid shopping on price alone. Many factors will go into the pricing of an outsourced solution – from actual tasks to the alternatives for a more strategic approach to the problem. Often an outsourcing partner will identify issues you didn’t know were issues but need to be addressed.
When thinking about costs consider the entire team. What would it cost to build out or replace the entire team you need to do the job – both the tasks and the strategic management of the finance function? If you hire in-house, is there enough work for them to do to justify the comprehensive full-time employee cost – taxes, benefits, salary, bonus, etc.
Is the expense based on a single function, a CFO, controller, or accountant – or will you need three roles to meet your needs? You may need a CFO role 5% of the time, controller 20%, and accountant 40%. Can you fill this need with one person? If current staff can do part of the job – but what about the other aspects?
When analyzing costs, focus on the entirety of the needed team. An outsourced solution should save you 30-50% compared to hiring in-house full-time. The savings come with the added benefits of greater flexibility and more experienced professionals.