WHY OPT FOR A PART-TIME CFO
One of the key reasons for starting or expanding a business is gaining a sustainable boost of financial wealth and stability. Having a department set out to ensure that you obtain sufficient funds within your organization determines your success in attaining financial stability. Because of this reason, it is important to have a well-established financial department led by a Chief Financial Officer (CFO). If your business cannot keep up with the strain of funding a permanent financial officer, then hiring one becomes the most logical thing to do. Depending on your business’s current state and its future expectations will determine the type of CFO to hire.
Hiring a CFO
The concept of onboarding a part-time CFO heavily lies upon the following factors geared towards better performance and growth. Your organization is likely to benefit from hiring a CFO from another firm basically for the following reasons;
If your business is at the grass-root level or on its way towards growth, then hiring a CFO is good since they can fill the time gap where their services are not required. After a week or full day at work, there is usually a period where a CFO’s services are no longer required.
Hiring a CFO portrays flexibility in your business since it is a key determinant of your organization’s success rate. An outside perspective is usually non-bias and has a higher rate of highlighting areas that need more focus and those performing as expected.
A full-time CFO may tend to be a bit industry-centric after a long time in the company. However, hiring CFO guarantees diversity in experience towards diverse engagements providing you with a more balanced approach or perspective.
Several critical things are usually overlooked by a permanent CFO in your company, such as financial reporting. By doing so, you can get scheduled financial reporting and cash flow projections when most needed.
What a Part-Time CFO Brings To the Table
• A well-trained and professional CFO will definitely take an interest in book keeping apart from critical strategic tasks. Focusing on minimal tasks such as payroll and A/P provides an in-depth analysis of the business’s financial situation.
• Rather than viewing accounting as tax preparation, a good CFO will focus on managerial accounting, paving the way for accurate and informative financial reporting. Tax accounting professionals, therefore, can identify top candidates for the CFO position.
• A trained part-time CFO will definitely have vast experience in the software environment and quickly coming up to speed instead of a CFO who has been confined in one organization and lacks the diverse skill set required in different firms.
It is usually difficult to find the perfect fit when going over a list of potential CFOs to hire; therefore, coming up with a list of guiding questions towards candidate selection is quite important. Depending on your company’s line of expertise, here are some of the recommended questions you should consider before concluding:
• What means of communication does your CFO candidate usually opt for?
• What other industries have the candidates worked in?
• What is the average turnaround time for communication per candidate?
• Which references does the candidate have?
Choosing the most capable candidate for the CFO position plays a key role in taking your business to the next level. To ensure that the hired CFO is up to the task, provide a project that exhibits the CFO’s capability. Projects such as cash flow projection, financial model, and chart of accounts reboot.
There are many advantages to hiring a professional and ethical CFO, especially during the onset of your business. At DevReady, we have on-demand developers ready to work and catapult your company to higher levels of operation. Our trained team guarantees:
• Rapid growth
• Stability, especially when developing new markets and products
• Facilitation of M&A, debt, or investors
• Identification of the least performing areas affecting profits
These are just a few reasons why you should consult our team of professionals and guarantee excellence through the business’s various departments. Contact us today for more information and insights.