Why your small business needs a part-time CFO?

  • June 24, 2021

The long-term success of every business ranging from a small mom-and-pop shop to a large corporation, is measured mainly by its financial stability. After all, everything is tied back to how the company performs financially. In most cases, it is largely due to the strategies implemented by a person known as the Chief Financial Officer (the CFO).

Read on to find out what a CFO does and why hiring a part-time CFO may be a great opportunity for your business.

What Does a CFO Do?

A CFO is a highly qualified position that requires numerous years of experience in finance and an advanced degree in Accounting or Finance. A CFO is responsible for planning, implementing, managing, and running all the finance activities of a company, including business planning, budgeting, forecasting, and negotiations.

Benefits of Hiring a Part-Time CFO

Affordability

Keeping costs low is a significant part of keeping your business financially stable, something a CFO can help you with! While hiring a CFO is an investment that will positively affect your business in many ways, hiring one full-time can be expensive.

The hiring process of finding a suitable CFO is also an expensive endeavor. A full-time CFO for a small business has an average salary of around $150,000. Meanwhile, a part-time CFO provides high-level expertise on as needed basis at a fraction of the cost, costing as little as $3,000 a month ($36,000/year).

Flexibility

Because a part-time CFO is not a permanent employee, they can be hired to do specific financial functions rather than oversee the company's entire financial situation. If your company has an annual revenue of under $10MM, there is often no need for many typical full-time CFO tasks. When hiring a part-time CFO, you can determine what you need from them and provide flexibility, which further reduces costs.

Experience

Trying to headhunt for a CFO position as a full-time employee can use many resources to find the right candidate, which can be costly.

A part-time CFO generally has extensive experience already and can bring expertise from other industries as well, providing a turnkey transition into your business. This allows you to focus your resources on other facets of your business, leading to smoother operations and reducing opportunity costs.

What Can a Part-Time CFO Do for Your Business?

The job of a CFO is extensive and covers many aspects of a business, specifically referring to finances, but a part-time CFO can help you with the essential functions. A part-time CFO can help your business grow and increase profitability. In small companies, it is generally the responsibility of the owner or CEO, or sometimes even an accountant, to take on the typical duties of a CFO.

Hiring a part-time CFO can free up a lot of time and resources for the CEO and business owners and allow them to focus on building and managing their companies.

The CFO responsibilities Include but are not limited to:

  • Providing leadership, direction, and management of the finance and accounting team
  • Providing strategic recommendations to the CEO/president and members of the executive management team
  • Managing the processes for financial forecasting and budgets and overseeing the preparation of all financial reporting
  • Advising on long-term business and financial planning
  • Establishing and developing relations with senior management and external partners and stakeholders
  • Reviewing all finance, HR, and IT procedures and policies

Why Do you Need a Part-Time CFO?

On top of the immense number of responsibilities they can take on, a CFO is an expert in business finance. This allows them to provide critical insights to you as a CEO or business owner about where the company is headed throughout all the company’s life stages.

A part-time CFO is vital to any small company during periods of major business challenges such as rapid growth, acquiring investment capital, entering new markets, or even declining profitability.

A CFO, most importantly, will find ways to improve cash flow, profitability, and the balance sheet through many strategies across all business functions.

If you are ready to take your business to new heights through the advice of an experienced part-time CFO, contact us for a free consultation today.

We can find more profit for small business owners in 48 hours!