When you manage a successful business, there will almost always come a moment where you have expanded so much that you cannot meet the company’s financial obligations on your own anymore. Although the company may not have the resources or capacity to engage a full-time or a part time CFO for hire, it nevertheless requires services beyond a conventional commercial accounting firm.
Even if a company can afford to make the significant expenditure on a full-time CFO, the question remains whether or not the company needs all of the services provided. Rarely the complete knowledge of a high-cost employee is entirely used during a typical workweek. A significant amount of time is wasted on routine chores that might be completed much more efficiently elsewhere.
Hiring a part-time CFO might be a fantastic solution in various scenarios. The following are the five most significant advantages of taking this step for your expanding business:
You will benefit from the experience at a more early stage in the development of your firm.
The typical full-time or a part-time CFO for hire CFO route would need you to wait until your company is ready to fund the role full-time before you could benefit from the knowledge and skills that only a dedicated CFO can provide. If your firm works with an outsourced, part-time CFO, you may benefit from their experience far sooner in the company’s growth cycle. You may create healthier financial habits early in life, resulting in greater long-term sustainability and success.
Secondly, it assists you in maintaining the optimum size and composition of your staff.
Employing a traditional strategy for hiring a CFO may hinder you from organising your team in a beneficial way to your company, as you may have limited flexibility and financial resources. Working with a part-time CFO helps you save money while also allowing you to invest in other vital areas of your company. It’s especially advantageous to collaborate with a financial specialist who can provide data entry, bookkeeping, and CFO services in a single package.
The third advantage is that it helps you devise a more thorough accounting plan.
The majority of organisations in their early phases are primarily concerned with tax compliance and maintaining correct financial records. Even though these duties are necessary, a complete financial plan should lead your company’s actions into the future and make your financial status clear. Instead of being just another duty to complete, an outsourced CFO can transform accounting and financial planning into a competitive advantage for your company.
It assists you in better managing the financial flow of your company.
Strong cash management is vitally necessary for every business to succeed in growth and survival. If you do not personally have a financial background, you may find it difficult to fully comprehend your profit and loss accounts and other financial papers. It is possible, for example, to have tremendous profitability while your firm is nevertheless bankrupt for several different reasons. A part-time CFO will know the narrative behind all of the figures and will be able to assist you in developing successful strategies for improved cash management.
Being proactive in your planning for future growth is a significant advantage.
To accurately estimate and prepare for a company’s development, you must consider your existing and projected financial condition. An outsourced CFO may assist you in preparing for and obtaining finance and determining whether or not to invest in new equipment or commercial space. These specialists are also necessary strategic resources for your company’s growth, and they should be considered as such.
A part-time CFO may be an excellent tool for ensuring that your company maintains financial stability as it grows and expands.