Benefits of a Part Time Chief Financial Officer (CFO)

A number of companies and organisations operate with out a CFO. They may have an accountant, bookkeeper or financial controller and think that’s all they need. Furthermore, they might think that a CFO is too expensive or a waste of money but in many circumstances that isn’t the case.

Cloud based technology has meant that many financial services previously provided by bookkeepers and controllers can be automated. Administrative tasks such as payroll, payments and receipts, general tax compliance, financial reporting and performance management can be performed smoothly.

However, you still need a key advisor to work in tandem with the CEO on strategic operations. A world class CFO will oversee administrative tasks but also focus on future operations. They will develop an in depth understanding of the business, suppliers, customers, competitors, technology and understand bigger picture economic factors and government regulations.

This high level of expertise will generate improved profit margins, greater financial efficiency and superior financing strategies to help an organisation achieve its future aspirations.

But how can a part time CFO option work? Advances in technology means that financial information is constantly live and can be accessed anywhere. Previously a two-hour meeting with a bank, lender or financier can now be performed in 30 minutes. That three-day month end close off and forecasting process is now automated, the month long budget process can now be performed in a couple of days.

So what happens with that “extra” time? As previously mentioned, businesses still need the expertise however, they should only be paying for CFO working time which is no longer a full-time requirement.

There might be an initial project period for when a CFO is required on a more full-time basis to implement more efficient systems, tools and process. Post implementation a two to five day per month ongoing assignment is the perfect solution.

This part time proposal works for both parties because;

1. The CFO has freedom to work and learn from other owners and businesses to broaden their skillset.

2. Business owners get a high level of expertise at a fraction of the cost.

PRO TIP:

A Part Time CFO is cheaper then operating with a small finance team. Good CFO’s will pay for themselves through strategic ideas and operational improvements to increase profits.

If you are a CEO, Entrepreneur or Business Owner and your organisation is starting to grow, or you’re not sure where to go next you should investigate Part Time CFO alternatives.

But be sure to pick one you will enjoy working with because they are going to be your new partner in crime.