Introduction
As your business grows, you face a strategic choice: should you outsource your accounting work or hire a fractional CFO? Here’s how to weigh each option for your unique needs.
1. What Does Outsourced Accounting Entail?
- Services included: Payroll, accounts payable/receivable, monthly reconciliation, tax filings
- Pricing models: Fixed monthly rates, hourly tiers, or per-transaction fees
- Strengths: Lower cost, scalable to needs, and suitable for businesses under $1M in revenue
2. Understanding Fractional CFO Services
- Services included: Cash-flow modeling, budgeting, KPI monitoring, fundraising support, and board reporting
- Typical cost: Retainers range from $3,000–$7,000 per month (pro-rata)
- Ideal for: Revenue over $1M, seeking strategic planning, capital raises, or scalability
3. Comparing the Two Side by Side
| Feature | Outsourced Accountant | Fractional CFO |
| Cost | ~$1,000–$3,000/month | ~$3,000–$7,000/month |
| Scope | Transactions, payroll, taxes | Strategy, forecasting, growth |
| Time Commitment | Task-based, on demand | Regular, ongoing cadence |
| Best for Revenue | Up to $1M revenue | $1M–$10M+ growing companies |
4. The Hybrid Approach
- What it looks like: Core finance admin is outsourced, and you engage a CFO quarterly or via project basis.
- Advantages: Balanced costs with strategic oversight
- Right timing: When you’re approaching rapid growth or need fundraising?
5. Local Considerations in LA
- Multistate filings: Complex if you operate in California and other states
- Payroll rules: Compliance with California wage orders and hire-credit programs
- Talent access: Fractional roles are growing due to remote work—leverage this to keep costs competitive
Conclusion
Your decision hinges on your business size, growth rate, and financial sophistication. Both options deliver value—outsourced accounting for compliance and fractional CFO work for foresight.
Not sure which you need? Let’s explore both on a free discovery call—and design a flexible solution for your Greater LA business.
Next Steps for You
- Choose your publishing schedule—1 per week or a content blitz.
- Add local image assets with alt text like “Los Angeles tax consultation.”
- Embed CTAs like “Book Your Free Strategy Call.”
- Keep third-party links (IRS, LA finance portal) no-follow and review for authority.
