What to Expect from a Part-time CFO?
A Chief Financial Officer (CFO) plays a vital role in a business. As one of the most knowledgeable members in your executive team, your CFO’s main function is to improve profits and bottom line and increase your cash flow. The only difference between a full-time and part-time CFO is the number of hours that they work in a specific company.
If you’re thinking of hiring a part-time CFO then here’s what you can expect from him:
- Oversees the accounting and financial practices of your company – This function covers multiple tasks like budget preparation and accurate and timely financial statement preparation. Your chosen CFO will also serve as your CEO’s trusted business advisor. You can then expect him to provide the CEO with relevant information about finance by developing the most useful accounting tools and systems. He can also make recommendations regarding company operations.
- Oversees budget planning – This specific function also requires him to put into motion the strategic plans designed to manage the cost of your company. The good thing about working with a CFO is that he is already knowledgeable in this area. This makes him efficient in analyzing your business functions and help you in making educated and authoritative decisions.
- Manages cash flow – This also involves making predictions on the direction of profits. Your chosen CFO will also need to maintain and optimize their relationship with any bank that they come in contact with.
- Studies you and your business – As the business owner, there are things that bother you a lot, and this is where a CFO can help as he will most likely find out what these issues are. He will also spend time analyzing the entire company to ensure that he identifies the key issues it currently faces financially.
Expect him to ask you some questions about your company’s present financial situation. He will also analyse your financial statements to determine the specific issues that may cause your business to fail. His full awareness of your business makes him really capable of finding solutions to the most pressing issues.
- Increases your margin – A good part-time CFO fully understands the effects of profit margins to the business. Since he is aware of its importance, you can expect him to do something to improve your profit margin. An increase in this area can also mean an increase in your bottom-line income.
Just like other companies, you can also gain benefits from hiring a part-time CFO to solve your financial issues. This simple step can actually help improve your financial standing and direct you to a more profitable path.