The salary for a full-time CFO can reach upwards of $200,000 a year, but many businesses aren't in a financial position to afford this. Hiring a part-time CFO makes sense for businesses in this situation.
Part-time CFO’s add tremendous value to a company's financial operations. They can help improve financial reporting and managing cash flow. For a small company, a part-time CFO may mean the difference between success and failure.
Benefits of Hiring a Part-Time CFO
Updating Financial Processes
Small businesses just starting out may be able to handle basic financial operations with efficient bookkeeping. However, for growing businesses, these processes should be upgraded.
Implementing new accounting software and upgrading account processes requires someone who understands the complex financial and accounting requirements. Aside from managing the upgrade, a part-time CFO can also train staff on how to use the new processes.
More Effective Decision Making
A part-time CFO can help analyze data gathered from accounting tools to help you make more effective decisions. Optimal business decisions cannot be made without first analyzing the relevant data.
The CFO will also be keeping a close eye on costs, help negotiate supplier contract and ensure you are getting the best deal available.
Cash Flow Management
Business owners can hand over the complicated task of cash flow management to a part-time CFO to free themselves up for more strategic tasks. A strong CFO can review and understand cash flow issues faster than someone without this advanced knowledge.
Having cash flow issues? A part-time CFO can also help you look at viable options for improving the situation. A CFO can handle a number of financial situations, including providing forecasting information, to meeting with investors and presenting projections.
Helping with Expansion
As a business expands, it can experience growing pains. From cash flow management to improving invoicing or even raising capital, a part-time CFO can be just what a new business needs to help it grow.
Your part-time CFO will work with your team to come up with new practices and procedures that will work for your growing business. They will also help negotiate vendor contracts, manage insurance and help build new accounting and financial reporting structures.
Hiring the right part-time CFO
Be sure to spend some time to find the right CFO for your business. You’ll want someone that understands the latest financial and accounting practices. But, most importantly, you will want to find someone that you trust.
You can hire someone through an agency or hire someone directly. But, remember to do your due diligence.
Ask potential candidates the following questions:
- Do they have references from their last three clients?
- How have they helped these clients grow their business?
- Do they have experience in your specific industry?
- Do they understand the current accounting systems you are using?
Choosing the right part-time CFO will take some time. Explore your options, and be prepared to invest some money into the right choice. Get in touch with Cook Martin today to discuss whether your business can benefit from a part-time CFO.