Why Part-Time CFO Can Help Grow Your Business?

Everything you want to know about Part-time CFO

The job of the Chief Financial Officer is vital to the development of any business. Adding a part-time CFO to the team will assist boost and expand the company while allowing key employees to focus on what they do best. A skilled CFO invests time in learning about his or her company's financial processes as well as the industry in which it operates. This information is used to make crucial organizational financial decisions, which are frequently the key drivers of business success. Being a qualified CFO in a company is costly. The financial commitment can soon build up when it comes to posting the job, holding numerous phone screenings, bringing in prospects from all across the region or country for various rounds of interviews, and putting together offer packages. With the help of our article, you will see the importance of being a part-time CFO in business, their advantages in different aspects of business, their roles and expectations, and their purpose in every company. Stay reading while learning.

What is a part-time CFO?

During times of transition, a part-time CFO can be a valuable asset. A part-time CFO is responsible for the company's administrative, financial, and risk management operations, including developing a financial and operational strategy, identifying and tracking relevant Key performance indicators, and maintaining and monitoring control systems to protect company assets and report accurate financial results. -Source: Toptal

We rapidly recognized that getting hands-on with businesses was the most effective method to pinpoint problems and execute solutions. This also allows us to examine each client's unique requirements and potential. As much as possible, we promote face-to-face communication. We understand how vital it is for our clients to feel at ease when working with us, and we are eager to go above and beyond to make that happen. A part-time CFO is a trusted advisor and consultant, a strategist who plans and executes, and an accountant with strong technical skills. A CFO who swiftly integrates into your organization, expertise from a variety of family and private businesses. – Source: Part-Time CFO Services

The Ideal Situations for a Part-time CFO in Business

  • Point of Entry: Companies that want to recruit a full-time CFO can begin by hiring a part-time CFO to ease their employees into the transition. Bringing in a third-party CFO first might also help to flesh out the requirements for the permanent position. As a result, the company has a more clearly defined stance that is more likely to recruit and retain top personnel while also ensuring long-term financial success. Using a part-time CFO before committing to a full-time role, like renting an apartment before buying a house, defers the cost until the business has grown enough to justify it. This strategy can help low-cash-flow businesses free up capital to reinvest in the firm during critical growth phases.

  • Management of Transformation: Because transitions involve unique financial issues that necessitate professionals, they are ideal times to hire a part-time CFO. Among them include, but are not limited to:

  • Relocating a company's headquarters

  • Obtaining outside funding

  • Achieving newly set revenue targets

  • Increasingly investing in the future

  • Forming new collaborations

  • Additional locations are being opened

While a controller, accountant, or vice president of finance normally handles the day-to-day financial demands of small firms and new startups, transitional situations necessitate additional expertise. Hiring a part-time CFO for a transitional phase or a specialized project provides for specialization that is just not possible with a full-time in-house CFO.

  • Engagement is limited: The function of a part-time CFO is well-suited to this limited participation paradigm. Hiring a CFO for a short-term engagement, such as selling a business, is a cost-effective solution and a smart method to acquire access to the capabilities of an experienced CFO. Furthermore, it ensures that the CFO is entirely committed to the organization rather than splitting his or her time between work and job hunting.

  • Support for Software: A part-time CFO can help a firm modernize or move its accounting system or software, as well as handle any issues that develop along the route. This lays a solid foundation for the company's future financial stability. As a result, the transition is smoother, and the subsequent sentences are cleaner.

For many businesses, hiring a part-time CFO or controller makes more sense. Using a third-party financial services provider to a CFO is a cost-effective way to hire top talent to perform important tasks such as generating business finances, upgrading your accounting system, navigating a merger or acquisition, approaching lenders, expanding business operations, and making time-sensitive financial decisions. – Source: CFO Selections

“A successful business requires one simple thing: Passion” – Teresa Collins

Advantages of a Part-time CFO

  1. Cost-Savings: Operational inefficiencies along the process can balloon this cost even more in organizations that have never hired a CFO before. Paying for a part-time CFO reduces the financial burden of a full-time CFO by avoiding the costs of search and hiring, as well as the accompanying remuneration. Furthermore, when using a part-time CFO, the company does not have to pay for benefits or worry about offering expensive bonuses to promote retention because the CFO is a third-party employee.

  2. Immediacy: Because time is money, hiring a part-time CFO is another cost-cutting measure. When a company recognizes the need for a CFO but does not begin the search process right away, bringing in a part-time CFO can provide immediate assistance while a more thorough search for a permanent CFO can take place. A part-time CFO, Controller, or VP Finance can be brought in to keep a business's finances operating smoothly when the present controller, VP of Finance, or CFO leaves unexpectedly.

  3. Flexibility: Some firms prefer to hire a part-time CFO to have more flexibility in the function. Unlike an in-house CFO, who is responsible for all financial operations and oversight, a part-time CFO might be contracted to perform a variety of financial tasks. Hiring only what you need, when you need it, results in an a la carte finance solution that many businesses values. As a result, a small firm might benefit from a cost-effective catered service.

  4. Experience: Inherently, financial services and executive recruitment businesses will be better at attracting and screening outstanding applicants than the average company attempting to appoint its CFO. – Source: CFO Selections, Source: Pro CFO Partners

The most important characteristics of a part-time CFO

Your part-time CFO must be a team player who will blend in with your staff and company culture. To realize your goal, you must have someone who can collaborate with your business team.

  • Make sure you hire a part-time CFO who can supply you with the kind of flexible service you've just heard about. It's critical that you get a personalized service that's geared to your specific requirements.

  • You require someone who can make effective introductions that will have a significant influence on your company. For example, we can assist your company in locating the appropriate funding source through our global workforce of part-time CFOs.

  • To stay on top of things, your part-time CFO needs to be devoted to lifelong learning and career growth.

  • The part-time CFO must be capable of providing the degree of service that you require. Likewise, your part-time CFO should be willing to assist you via email and phone. You'll get the aid you need when you need it the most.

  • Brings both financial and human skills to the table. A company's human element has the greatest impact on its future success.

The financial and strategic components of the company are well communicated with leadership, investors, bankers, and others. – Source: The CFO Center, Source: Intigro, Integrated Business Growth

When is it Appropriate to Hire a Part-Time CFO?

Leading a developing company necessitates a great deal of effort. It becomes impossible to do everything yourself at some point. As your firm grows, you'll find that you'll need more financial and business skills than an accounting manager or controller can provide. However, if you're like most businesses, you're probably not ready or able to hire a full-time CFO. Working as a CFO for individual organizations of all sizes in various industries provides the best part-time CFOs with both depth and breadth of knowledge. A company looking for a part-time CFO will benefit greatly from hiring someone who has dealt with and handled several financial problems in a variety of contexts.

Roles and Responsibilities of a CFO in Business

The responsibilities of a part-time CFO are different however they often involve the following:

  • Create performance metrics that are aligned with the company's strategic goals.

  • Organize the departments of accounting, human resources, investor relations, legal, tax, and treasury.

  • Assist in the development of the company's future strategy by contributing to the business plan, financial and tax strategies, budgeting, and forecasting. – Source: Toptal

What Can a Part-Time CFO Expect?

Hiring a part-time CFO right away can help you focus on critical financial issues rather than becoming bogged down in the day-to-day operations of your company. Part-time CFOs are cost-effective and provide essential feedback and insight into strategic decisions from an outside perspective. If you're thinking about hiring a part-time CFO, here are four things to keep in mind.

  1. Learn about you and your company: A part-time CFO must be aware of the company's significant financial concerns in order to assist it in getting back on track.

  2. Recognize your break-even point: Your break-even point is the number of units (items or hours of service) you need to sell to pay your costs. Despite the fact that break-even points are an important part of any business plan, few business owners pay attention to them.

  3. Close the gap between payables and receivables: Part-time CFOs also look at the discrepancy in the number of days of sales in the company's accounts receivable and accounts payable.

  4. Increase your profit margins: In most businesses, understanding the importance of your profit margins is highly undervalued.

  5. Don't just give data, give information: A CFO will make sure you have the most up-to-date information about your company and finances so you can make smart decisions. – Source: Entrepreneur Asia Pacific, Source: CFO Selections

Part-time CFOs help you grow with your business

As a part-time CFO, you are one of the top priorities in business, and as a business owner, you will gain as well as a part-time CFO from helping you to achieve the success of your small business. A part-time CFO needs financial data on a regular basis in order to establish growth ideas for your company. To make decisions, you'll need financial data. Some judgments must be made more quickly than others, and financial data must be available to make the optimal decision. Your financial reporting process will be prioritized by a part-time CFO. He or she will collaborate with your bookkeeper to guarantee that financial statements are prepared correctly and on time. Financial statements will be prepared and delivered to management on a regular basis by your CFO.

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