It all has to do with risk and cost management. Hiring an employee, carries a lot of commitment and cost. Cost is obvious, you have to pay their salaries. But beyond cost, you also take a certain responsibility to maintain their employment for as long as possible. They depend on you. And firing someone isn't just uncomfortable it also carries legal considerations.
So the commitment of hiring someone carries risk and, naturally, small businesses only hire employees that are absolutely vital to the business such as developers, customer facing personnel, etc. Since small businesses need to stay nimble and have a flexible cost structure (i.e. increasing and decreasing overhead costs in a relatively short time span) hiring expensive Accountants, Controllers and CFOs is out of the question - plus there usually isn't enough work to keep them busy full time, but there is still a need to build the right fiscal habits, systems, and processes. So outsourcing becomes a great solution.
Outsourcing is the most reasonable way to acquire the talent needed to build your financial infrastructure without bearing the burden of an in-house team. Outsourcing; however, is a tricky task. There are a lot of options in the marketplace, but very few of them will have experience with small businesses and startups, even fewer will have experience and complete understanding of financial infrastructures, and only a select few will have the skills and will be willing to present you with an offer to satisfy your needs.
At this point, I am making it seem as if finding the right partner to outsource the accountant, controller, and CFO function is really hard and that’s because it is. To further elaborate on this, I have to explain the economics of running such as an outsourced operation, then I will analyze the different types of outsourced providers in the marketplace.