Choosing between outsourced CFO support and an in house finance hire starts with the work you need done. A business needing daily invoice processing faces a different problem from one needing help with pricing, forecasting and investment decisions. Comparing job titles or a monthly invoice alone can lead to the wrong appointment.
In this article
- Define the skills and time required
- Compare outsourced and employed options
- Assess total cost and continuity
- Agree responsibilities and success measures
Write down the recurring workload, the decisions that need senior input and the tasks currently falling to the owner. Then compare arrangements against that list. You may find that a combination of internal processing and external financial oversight fits better than either option alone.
Separate the roles before comparing costs
A bookkeeper, finance administrator, management accountant and CFO can each contribute to a finance function. Their responsibilities may overlap, but they are not interchangeable.
For example, a senior adviser might design a cash reporting process and challenge assumptions without checking every expense claim. A finance administrator may keep transactions moving each day without having the experience to evaluate a new acquisition. Hiring one person to cover everything can create an unrealistic role.
| Need | In house arrangement may suit | Outsourced arrangement may suit |
|---|---|---|
| Daily operational queries | Frequent immediate access is essential | A defined response service is sufficient |
| Senior decision support | Workload supports a substantial ongoing role | Senior input is needed at selected intervals |
| Business knowledge | Extensive embedded operational knowledge matters | Information can be shared through a structured process |
| Changing demand | Stable duties justify continuing employment | Projects and review frequency vary |
| Coverage | Team can provide holiday and absence cover | Provider has agreed named cover and escalation |
These are considerations, not guarantees about either model. Ask candidates and providers how the proposed arrangement would work in your business.
Compare the whole cost
For an employee, build a budget covering salary, employer costs, pension obligations where applicable, recruitment, equipment, software, training and management time. Add provision for leave and cover. Check current employment requirements rather than applying an old percentage uplift; GOV.UK's guide to employing staff identifies the main setup responsibilities.
For outsourced support, examine the agreed fee alongside implementation work, additional meetings, reporting preparation and project charges. Check whether the business must still pay for internal staff or another provider to maintain the underlying records.
In both cases, include transition time. Someone needs to explain systems, resolve opening queries and provide usable data. Also compare the cost of work that remains with the owner. An apparently cheaper arrangement may be expensive if it leaves substantial unfinished administration.
Do not treat every cost as directly comparable. A permanent hire may provide daily capacity and institutional knowledge; an external engagement may provide fewer hours of more focused input. Compare the outputs and availability required, then look at the total cost of achieving them. EPOS fee enquiries should go through the pricing page, with scope confirmed in a quote.
Illustrative example: a growing design agency
Suppose an agency has reliable outsourced bookkeeping, but the owner spends evenings reviewing project margins and cash requirements. There is enough operational finance work for several hours each week and a separate need for monthly commercial review.
The agency compares three options: a full-time finance hire, a part-time internal administrator with external CFO input, and a wider outsourced finance service. It records who would handle billing, debtor queries, reporting and project pricing under each option.
The second option could fit if the administrator can keep records current and the owner needs periodic senior challenge. It could fail if urgent commercial decisions need daily support that the external scope does not provide. The example illustrates how workload and response needs matter more than the label.
Test access, authority and continuity
Before appointing anyone, agree who can see sensitive information and who can approve changes or payments. Distinguish preparation, review and approval. Access to reports should not automatically mean authority to move money.
Ask an external provider who delivers the work, who covers absence and how records and models are handed back when the engagement ends. For an employee, establish documented processes and shared business access so critical knowledge does not sit solely with one person.
For company directors, external help does not remove legal responsibility for records, accounts and performance. GOV.UK sets out the retained responsibilities. Appointment decisions should therefore include how the board or owner receives and reviews information.
A practical selection process
Start with a short role specification and examples of the decisions or problems to resolve. Ask each candidate or provider to explain their proposed first three months, information requirements and limits. Compare proposals using the same workload assumptions.
Check relevant experience and professional status directly; a title does not establish qualifications. Ask how they would explain an adverse variance or challenge an unrealistic forecast. Agree a review point so the arrangement can evolve as the business changes.
Can outsourcing replace all internal finance work? Only where the agreed service actually covers it and the business supplies information on time.
Can we combine a hire with external support? Yes, but define who prepares, reviews and approves each output to avoid gaps or duplication.
Discuss your workload and decision needs with EPOS outsourced CFO support. A useful starting point is a task list, current reporting pack and expected growth plans, rather than a request for a job title alone.