Are you covering your business’ finance needs with a part-time CFO?  Properly managing your finances is a vital part of every business.  But most small businesses don’t need to hire a full-time Chief Financial Officer. A part-time CFO can bring all of the benefits of a full-time employee, and so much more.

Read on for this guide on why you should hire a part-time CFO to help support your business’ success.

It’s More Cost-Effective

If you hire a full-time CFO to work out of your office, it’s not only their salary you need to pay.  You’ll need to pay for everything that goes along with having a full-time employee. This includes:

  • Benefits package
  • More office space
  • Extra equipment
  • Specialised equipment and software

Hiring an outsourced, part-time CFO will cost you less.  If you don’t need the position to be full-time, this option will also be more effective to meet your needs.  It’s something to think about. Especially for small businesses looking to weather these rocky times.

Easy to Scale

Outsourced CFOs are easier to scale than having a full-time, in-house position.  You’re able to use them as much or as little as you want, based on your current needs.

If you grow to the point of needing a full-time CFO, if you’ve been scaling up part-time, it’ll be easier to switch.

Or if your business has busy and dry spells, it’s a more flexible option to scale up or down as and when you need to.  It’s a lot easier than having to fire, and then a few months later re-hire a full-time CFO again.  It’s more practical too.

Having a part-time, outsourced CFO is a huge boon in times of rapid growth too.  Or when your business is experiencing cash flow issues.  A quick call to your CFO and you can scale up or down as needed.

More Independent CFOs

Part-time, outsourced CFOs often work outside your business.  You might even see them referenced as virtual CFOs.  They’re unlikely to hold any company bias and can provide a truly independent service.  This will only be a benefit to your financial situation.

An in-house CFO may have to stick to internal policies or other internal business matters.  In some circumstances, this could lead to in-house CFOs making decisions that they have to.  They’re policy-based, and may not be in the best interest of your business.

Independent CFOs can focus on providing objectivity when servicing your business.  They’ll present your business’ financial data is a no-nonsense, no-frills, “black & white” way.  There’s no sugar coating, if’s, but’s or maybe’s.

They can also propose strategies without fearing a backlash.  You will always receive accurate, clear information about your business’ finances.

More Skills to Bring to the Table

Outsourced CFOs often work with a wide variety of businesses.  This means they will gather wider knowledge of other disciplines and industries.

It’s important for CFOs to always be upskilling to bring in more business for themselves.  A lot will gain professional qualifications and certifications outside finance.  Some might even take various industry-specific qualifications.

There is also the knowledge and experience of working with different clients.  What they learn from consulting within an industry or sector, they can then take on to the next client in that area.  A professional with such a varied background can bring skills to the table to help increase profit.

These extra skills could be the advantage your business needs.  Some of the strategies they use for other areas may work for your business too.  And this can put you ahead of your competition.

Solves a Short-Term Problem

If you have a full-time CFO who is leaving or terminated, an outsourced part-time CFO can fill the gap for a while.  They can also provide advice to businesses in periods of growth to get them to the point of needing a full-time CFO.

As part of your business plan, you must have a financial strategy.  You also need to make sure that strategy is in place and you’re monitoring your progress.  For the existing accounting team, this might not be within their current skill set to do.

Outsourced CFOs can give advice on the best industry practice and strategic decision making.  They can also help build processes and systems while your business continues to grow.

It’s another area where their huge skill set comes in handy.  Outsourced CFOs will have had clients from all across different sectors.  They’re used to getting up to speed on businesses and industries fast, even if they only need to for a short time.

Bring Access to a Wide Network of Financial Institutions

An outsourced CFO will have a huge contact list gathered over their working lifetime.  This includes their:

  • Personal network
  • Firm’s network (if not a freelance contractor)
  • Network of previous clients

As such, by hiring an outsourced, part-time CFO you’re getting access to a wider pool of resources.  You might also get access to new potential customers and clients.  When looking to grow, this can be a huge help in getting you out to new vendors and markets.

Your outsourced CFO can help you find the right financial institutions to go with.  They may know which banks offer the lowest rates of interest.  Some might even have an internal contact that can help out.

Some may have worked with venture capital firms, hedge funds, or institutional investors.  This can help businesses who are looking to raise funds.  If they have an international network, they might even help you expand. You could grow out into new locations, or bring in new service/product lines with their help.

Don’t Miss Out on a Part-Time CFO

So there you have it!  Now you know the benefits of an outsourced, part-time CFO, don’t delay in hiring one.

It’s a flexible option for businesses in this uncertain climate without stifling growth.  There’s room to scale up or down as you need.  And the wealth of knowledge and experience that a part-time CFO can bring is a real treasure trove.

If you feel a part-time CFO could help your business, contact proCFO today.  We provide all the insight you’d get with a CFO, without the huge expense.

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