Why You Should Hire a Contract CFO?

Learn more about hiring and working with a consulting CFO

Whatever industry your business is in, or what your organization’s size is, having a Chief Financial Officer (CFO) can make a significant impact on your company’s success. If you own a small business or startup, you may not have the resources to recruit a full-time financial executive, so a part-time CFO could be a viable solution.

Having the right leadership in place can be a major game-changer for your organization. As small businesses and startups often start with a single leader, over time, it is essential for the owner/founder to delegate core responsibilities to others as the size and complexity of the business increase.

That is where a Chief Financial Officer comes in—having the right CFO’s will allow you to effectively take charge of your company’s financials without having to manage every aspect personally. Unfortunately, bringing in a full-time CFO can be a costly affair, which is what makes a part-time CFO a great solution for your business.

How Part-Time CFO’s Help Your Company Grow

It is not uncommon for small businesses and startups to utilize their bookkeeper or accountants as a quasi-CFO. While in other cases, the owner takes on the financial responsibilities themselves, which can leave the business exposed to unforeseen risks.

Although the bookkeeper or owner may be aware of the inner workings of the business, it may be preferable for an individual that is formally trained in financial planning and analysis to take on the CFO responsibilities for the business. A Fractional CFO can be an ideal choice for a business in these situations.

Here are 7 things the best part-time CFOs do to add value to your company:

• Personal Consultation – A part-time consulting CFO, with their extensive experience and financial knowledge, can serve as a strategic decision-making partner. A business owner can contract with a part-time CFO when an expert consultation is needed to solve a specific business problem.
• Cashflow Management – Access to adequate cash is an essential requirement for all growing businesses. A capable CFO can play an integral role in cash flow management or possibly in connecting with you with investors and lenders, ensuring access to financial resources.
• Evaluating Financial Data – An important aspect of modern business management is evaluating financial data in order to devise effective business strategies. Having a qualified fractional CFO will allow you to utilize your financial data and gain a competitive edge effectively.
• Cost-Effective Hiring – A contract CFO’s can be cost-effective to hire since they can be brought in on an hourly, monthly, or per-contract basis. This allows the business to gain invaluable financial and strategic insights without the cost of hiring a full-time CFO. You can even hire multiple part-time CFOs on a consulting basis who each specialize in a different functional area.
• Bringing Outside Perspectives – It is often difficult for insiders to have the necessary perspective to make good business decisions because they bring their own set of biases with them. It can be beneficial to bring in an expert with an outside perspective who can provide a fresh, balanced view of a company’s strategic alternatives. An effective part-time CFO will do just that for your company.
• Flexibility – Rapid growth periods are critical times that often require expert insight to help you navigate the process. To ensure that your business can effectively and efficiently scale, it is important to have the right guidance to support making the right strategic decisions. A Fractional CFO will get actively involved to help you navigate these high growth periods and make the right financial decisions. On the other hand, you can phase resources down during relatively slower periods to better manage your costs and other financial liabilities. Part-time hiring provides the flexibility to push ahead when opportunities arise and scale back when not needed.
• Risk Reduction – Bringin in a contract CFO helps you mitigate risk and quantify financial decisions for your organization. This invariably leads to improved profitability and cash flow and solidifies your company’s long term standing.

By bringing on a qualified part-time financial professional, business owners can take advantage of these benefits at an earlier stage than if a full-time hire was necessary. This is especially important during high-growth stages, where qualified financial guidance over critical business decisions is imperative.

SA Consulting can Help You As Your Part-Time CFO

If you agree that having a contract CFO will improve your business, feel free to contact me. I would love to set up a consultation to evaluate your business and identify the best way I can help you.

With over twenty years of professional experience, I have helped numerous startups and small businesses solve their business problems and maximize their potential. I would love to do the same for you.

By partnering with me, you can focus on your business operations while I help you as the best Fractional CFO for your business.