Signature Analytics
  • LinkedIn
  • Facebook
  • Twitter
  • Instagram
  • Youtube
  • Home
  • Services
    • Comprehensive Assessments
    • Outsourced Accounting Services
    • CFO & Business Advisory Services
  • About Us
    • Our Approach
    • Careers
  • Industries
    • Nonprofits
    • Construction
    • Professional Services
      • Marketing Agencies
    • Technology
    • Manufacturing & Distribution
    • Recovery & Wellness Centers
    • Life Sciences & BioTech
  • Resources
    • Blog
    • Case Studies
    • Frequently Asked Questions
  • Talk To An Expert
  • Menu Menu

How Much Should I Pay to Replace My VP of Finance?

News
Vp of Finance

Table of Contents

  • Assessing the Cost and Value of In-House Finance and Accounting Teams
    • Current Average Salaries for Finance and Accounting Positions
  • An Alternative Solution? Outsourcing Accounting Services
  • By Outsourcing Accounting Services, Businesses Can Benefit From: 
    • Reduced Costs
    • Increased Flexibility
    • Access to Expert Advice
    • Improved Accuracy and Compliance
    • Increased Focus on Core Business Functions
  • Learn More About Signature Analytics

And other accounting roles, responsibilities and costs: 

 

Employee turnover can be a disruptive and stressful experience for any business owner. Losing a key member of the finance or accounting team can have significant operational and financial consequences. The search for a replacement can be a daunting task, especially when the departing employee takes institutional knowledge with them. This can lead to process gaps and disruptions across multiple departments.

 

Replacing the departed employee can take months and require extensive training on your company’s operations. Finding the right skill level and culture fit is crucial, and the search process can be time-consuming and costly. Meanwhile, your business must continue running, and the absence of a key finance or accounting team member can cause unnecessary stress and strain.

Assessing the Cost and Value of In-House Finance and Accounting Teams

As a business owner, you may be wondering how much you should pay to replace key finance and accounting team members such as CFOs, VPs of Finance, Controllers, Accounting Managers, Staff Accountants, or Bookkeepers. However, before we delve into that question, it’s essential to determine if it’s the right one to ask. In many cases, small to mid-market businesses may not need a full-time CFO or VP of Finance, but rather require on-demand financial insights.

 

Before we discuss the benefits of outsourcing, let’s examine the state of the hiring market nationwide. It’s worth noting that the following statistics are based on national averages, and areas such as San Diego, LA, and OC may have significantly higher salary ranges.

Current Average Salaries for Finance and Accounting Positions

Here is a breakdown of the current average salaries for finance and accounting positions in the United States, based on recent data from Glassdoor and the Bureau of Labor Statistics (this is salary information only):

 

Chief Financial Officer (CFO): The average annual salary for a CFO is around $160,000 to $230,000, depending on the industry and company size.

Vice President of Finance: The average annual salary for a VP of Finance is around $120,000 to $170,000, depending on the industry and company size.

Accounting Manager: The average annual salary for an Accounting Manager is around $80,000 to $120,000, depending on the industry and company size.

Staff Accountant: The average annual salary for a Staff Accountant is around $50,000 to $70,000, depending on the industry and company size.

Bookkeeper: The average annual salary for a Bookkeeper is around $35,000 to $50,000, depending on the industry and company size.

 

When adding up the total costs of these positions include salaries, bonuses, benefits (15 to 20%), and overhead (computer, office space, etc.), It becomes apparent with the math that hiring an in-house accounting team is a significant investment for any company as it involves recruiting, training, and retaining staff, along with providing them with benefits, bonuses, and salaries. 

An Alternative Solution? Outsourcing Accounting Services

Outsourcing accounting services can provide a more cost-effective and flexible solution. By outsourcing these services, businesses can benefit from a range of advantages that can help them overcome the disruption caused by employee turnover and maintain their financial operations.

 

At Signature Analytics, our monthly retainer typically falls within the range of $5,000 to $15,000 per month, depending on the size of the business and the level of services required. This fee includes a full-service accounting team, including a CFO-level advisor, controller, staff accountants, and bookkeepers.

By Outsourcing Accounting Services, Businesses Can Benefit From: 

Reduced Costs

Outsourcing accounting services can significantly reduce costs for businesses. In fact, outsourcing can save businesses up to 50% compared to maintaining a full in-house accounting team. This is because outsourcing delivers the right person at the right time doing the right job and eliminates the issues of a junior person trying to do work outside of their skillset or a senior person becoming bored doing junior level work.. 

Increased Flexibility

Outsourcing accounting services provides businesses with increased flexibility. Businesses can access a range of accounting services based on their specific needs as they grow and change. This includes basic bookkeeping,  financial reporting, audit support, special projects, and even CFO-level strategy and planning services. Outsourcing providers can quickly scale services up or down to match the needs of their clients.

Access to Expert Advice

Outsourcing accounting services provides businesses with access to experienced and knowledgeable professionals. Outsourced accounting providers often have a team of professionals who specialize in different areas of accounting and finance. This allows businesses to access expert advice and guidance on various financial matters, including tax planning, budgeting, financial forecasting, and more.

Improved Accuracy and Compliance

Outsourcing accounting services can improve accuracy and ensure compliance with financial regulations and reporting requirements. Outsourcing providers have a team of professionals who specialize in accounting and finance. They have a deep understanding of financial regulations and reporting requirements, ensuring that businesses remain compliant with applicable laws and regulations. Additionally, outsourcing providers use advanced accounting software and technology to minimize errors and improve accuracy.

Increased Focus on Core Business Functions

Outsourcing accounting services allows businesses to focus on their core functions and strategic initiatives. Managing an in-house accounting team can be time-consuming and resource-intensive. By outsourcing accounting services, businesses can free up time and resources that can be directed towards core business functions such as sales, marketing, and product development. This can result in increased efficiency and productivity, ultimately leading to improved profitability.

Learn More About Signature Analytics

Outsourcing accounting services can provide businesses with a cost-effective and flexible solution to managing their financial operations. With Signature Analytics, businesses can access a full-service accounting team that can provide expert advice, improved accuracy and compliance, and increased focus on core business functions. 

 

Contact us today to learn more about our services and how we can help your business thrive.

Share this entry
  • Share on Facebook
  • Share on LinkedIn
  • Link to Instagram
  • Link to Youtube
https://signatureanalytics.com/wp-content/uploads/Screen-Shot-2023-04-20-at-1.27.11-PM.jpg 612 1102 support https://signatureanalytics.com/wp-content/uploads/Signature-Analytics-Logo-Blue-Darker-Grey-Horizontal-Main.png support2023-05-07 16:32:562023-05-01 16:33:57How Much Should I Pay to Replace My VP of Finance?

Connect With Us

Search the Blog

Read More

  • Compliance and Private vs Public Construction JobsDecember 1, 2023 - 8:34 pm

    Understanding the complexities of private and public construction jobs is crucial for contractors, as Zak Krauss and Brandon Manning explain in their insightful discussion. Public projects, in particular, bring a unique set of challenges and financial considerations, chiefly due to prevailing wage regulations and union interactions. Prevailing Wage Prevailing wages significantly impact the bidding and […]

  • How to maximize cashflow for your professional services companyHow to Maximize Cash Flow for Your Professional Services CompanyDecember 1, 2023 - 8:38 am

    As a professional services company, cash flow is crucial to your success. Whether you’re in marketing, advertising, HR, IT, law, or any other professional service, managing your finances effectively is essential for sustainable growth. That’s where Signature Analytics comes in.  As a leading provider of outsourced accounting services for professional services companies, we have the […]

  • The Chief Financial Officer is analyzing the Revenue per Category on a mobile device.Controller vs CFO: 3 Key DifferencesNovember 30, 2023 - 7:41 am

    Though the Chief Financial Officer (CFO) and the financial controller work closely together, they have significantly different roles within a company. The biggest distinctions can best be described by breaking down the operations and responsibilities of each role. In this article, we’ll look at the three key differences between these positions. We’ll address their scope, […]

  • Estimating Costs for Construction Businesses: Knowledge is PowerNovember 26, 2023 - 7:59 pm

    The Importance of Work-In-Progress Reporting   Join Zak Krauss and Brandon Manning as they explore the intricacies of estimating costs for construction businesses. Their main focus is the importance of work-in-progress (WIP) reporting. Any seasoned construction business owner will tell you that understanding project budgets and estimated cost of completion is crucial. It’s more than […]

Quick Links

Talk To An Expert

Services
Privacy Policy

Headquarters

4275 Executive Square
Suite 200 #1006
San Diego, CA 92037

(866) 306-1876

Locations We Serve:

We are a virtual company headquartered in San Diego, CA with employees across the USA.

We provide outsourced accounting services to clients in the western region and beyond.

Best Places Winner Logo 2022
Analyzing Employee Utilization Rates to Drive Profitability for Professional...UTILIZATION RATES & BILLABLE HOURSfinancial reportingThe Goldilocks Zone of Reporting: Not Too Much, Not Too Little, Just Right
Scroll to top

This site uses cookies. By continuing to browse the site, you are agreeing to our use of cookies.

AcceptDecline

Cookie and Privacy Settings



How we use cookies

We may request cookies to be set on your device. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website.

Click on the different category headings to find out more. You can also change some of your preferences. Note that blocking some types of cookies may impact your experience on our websites and the services we are able to offer.

Essential Website Cookies

These cookies are strictly necessary to provide you with services available through our website and to use some of its features.

Because these cookies are strictly necessary to deliver the website, refusing them will have impact how our site functions. You always can block or delete cookies by changing your browser settings and force blocking all cookies on this website. But this will always prompt you to accept/refuse cookies when revisiting our site.

We fully respect if you want to refuse cookies but to avoid asking you again and again kindly allow us to store a cookie for that. You are free to opt out any time or opt in for other cookies to get a better experience. If you refuse cookies we will remove all set cookies in our domain.

We provide you with a list of stored cookies on your computer in our domain so you can check what we stored. Due to security reasons we are not able to show or modify cookies from other domains. You can check these in your browser security settings.

Google Analytics Cookies

These cookies collect information that is used either in aggregate form to help us understand how our website is being used or how effective our marketing campaigns are, or to help us customize our website and application for you in order to enhance your experience.

If you do not want that we track your visit to our site you can disable tracking in your browser here:

Other external services

We also use different external services like Google Webfonts, Google Maps, and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.

Google Webfont Settings:

Google Map Settings:

Google reCaptcha Settings:

Vimeo and Youtube video embeds:

Other cookies

The following cookies are also needed - You can choose if you want to allow them:

Accept settings