What does outsourcing financial leadership cost?

Is “the cobbler’s children have no shoes” applicable here, i.e., how do we price our own service when one of the most important tasks in client companies is to help them price correctly and identify factors affecting customer profitability? Do we know how to price our service correctly? And what factors contribute to the price of outsourced, part-time financial leadership? Consulting services are customized expertise based on hourly/daily pricing.

We have compiled in this article things that generally affect the pricing of outsourced financial leadership. At the end of the article, you will also find indicative example prices based on the experience of our expert team. We openly display prices on our website, and with this, we want to emphasize responsibility in our actions and services. It should be noted that client situations vary, and this is carefully assessed during the offer phase, as well as the current state of the financial function and the client’s views on the tasks to be outsourced to the financial manager.

These are the most common tasks taken over by an outsourced financial manager:

The outsourced expert takes over the entire financial operation of the company, which may also include, among other things, management of financing options and billing processes. The outsourced expert typically leads (outsourced) accounting and financial reporting. For the reasons, it is common for the outsourced financial manager to be part of the company’s management team and possibly attend board meetings; after all, finance is involved in everything and all business decisions. For more information, you can read our previous article on the most common tasks of an outsourced financial manager.

Price of Outsourced Financial Manager – What Factors Affect It?

We always start with a small-scale financial function development project with client companies. The cost of this project depends on the current state of the company’s finances and financial processes – typically the workload is about twice as much in the initial month compared to ongoing services. Typical factors affecting the price of outsourced expertise include:

  • What tasks will be the outsourced expert’s responsibility– how much time does the client company need to allocate per month?
  • Does the financial manager participate in management and board meetings?
  • How much presence is required or desired at the client company’s office?
  • The nature and scope of client company operations (industry, size)
  • The nature of the client assignment

We aim for mutual benefit through automation (financial reporting should be efficient) – we do not want to increase workload unnecessarily!

How much would an in-house financial manager cost compared to outsourcing?

An in-house, experienced financial manager costs an estimated ten thousand euros including social security contributions. However, in small and medium-sized companies, there is often not enough work for a full-time financial manager, which often leads to the financial manager also taking on several other functions. Often, especially in small and medium-sized enterprises, the role of an internal financial manager may become fragmented and unclear, which in itself poses risks to the company’s operations. By hiring an outsourced expert, even a smaller company gets an experienced financial manager. At the same time, financial management work remains cost-effective by staying in the core process and not branching out elsewhere. Hiring outsourced expertise also eliminates employer risks and other risks – for example, if the company’s financial situation deteriorates and costs need to be cut, the outsourced service can be terminated simply and flexibly. For this reason, an outsourced, part-time financial manager is a better and more cost-effective option than an in-house financial manager.

How to know if outsourcing has paid off?

As costs are based on known, agreed-upon tasks in advance, you always pay only for the agreed-upon service. Often, financial management is “ripped” from the CEO’s workload, or it is done by a person who is already knee-deep in business and sales activities after hours. More time to focus on business should pay off in roughly about a year. The profitability of the investment can also be measured by processes – do financial operations work better qualitatively, and do we get the right data to support decision-making? Have financial processes been streamlined so that there is more time for thinking and working together in the company? An outsourced financial manager integrates numbers into the business. It should also be remembered to communicate the company’s finances and implement financial management culture within the organization. The quality of financial communication should improve and it should be very clear to both the company’s management and employees how the strategy is being implemented and “where we stand”. The value of this issue, which also touches on employee well-being, is significant.

Example Prices for Part-time Outsourced Financial Leadership Contracts

The service packages presented here are example prices and are based on the experience of our expert team. The service package is always tailored to the specific company. Development and takeover projects with client companies are priced according to the company’s current situation.

All prices presented here are excl. VAT.

  • Example 1: €1,200.00 / month
    • Turnover approx. one million euros, a few employees
  • Example 2: €3,300.00 / month
    • Turnover, e.g., 5 million euros, approx. 20 employees
  • Example 3: €5,500.00 / month
    • Turnover 10 million, approx. 35 employees, participation in management team work
  • Example 4: €7,200.00 / month
    • Turnover 20 million, 50 employees, participation in management and board work

In addition, we offer mentoring for financial leadership and board work on an hourly basis (€160 – €220 per hour).

Let’s go through and discuss what kind of package we could provide for your client company. You can conveniently book a consultation time directly from Anne’s calendar here.

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