The number one question people ask us the most often is, why is it beneficial to hire a contracted CFO / Accountant? Our answer hasn’t changed since day one, and there are two main reasons why hiring a contractor is beneficial to business owners, and non-profits.
1) By hiring a contracted accountant, you get a more experienced, educated, certified, licensed and insured contractor for less or for the same price as it would cost to hire an employee. Most business owners don’t understand how much an employee costs, so below are some of the items you would have to pay for an employee, but do not a contractor:
o You don’t have to pay or withhold FICA Taxes for contractors.
Although taxes don’t seem to be a big deal, for each employee you have, you will pay 7.65% of their salary for Social Security & Medicare Taxes.
o You don’t have to offer employee benefits or pay for overtime.
Employee benefits and overtime are huge expenses employers have to pay for and are very important if you want to make your employees happy.
o You don’t have to pay for overhead, or training costs like you do for employees.
By hiring a contractor, they are responsible for supplying the paper and work materials they need in order to do the job. They more than likely have an office building and may offer their conference rooms to their clients to use free of charge. Contractors are also required to pay for their continuing education and annual training themselves.
2) The second reason hiring a contracted CFO is better, is you obtain a depth of support with more than two qualified people for the price of one. Like most accounting firms, if one person doesn’t know the answer they will find someone who does. When you hire an employee, you are only getting one mind set, and hope you found a quality individual to do the job.
Are you ready to make the switch to a contracted accountant? Make an inquiry with CFO 4 Your Biz today.