5 Signs You Need a Part-Time CFO

Posted on: February 19th, 2020

It is not uncommon for growing companies to arrive at the point where they need financial expertise beyond basic accounting functions.  Here are some signs that your company may be in need of a part-time CFO:

1. You lack adequate financial reporting and analysis:

Financial reports should provide timely and accurate visibility into your organization’s financial standing so they can be used by the executive management team to make proactive, sound decisions. In addition to being accurate and timely, thorough financial reporting and analysis should provide important benchmarks and Key Indicators (KPIs) tailored to your goals and vision for the company.

2. You do not know where your cash is going:

Profit does not equate to cash flow. Most CEOs are knowledgeable about their revenues or net income, however most do not fully understand their company’s cash flow. Every CEO needs to understand their company’s current cash flow position, sources and uses of cash, and projected cash flow.  A part-time CFO will provide a clear picture of your company’s cash flow and provide advice on ways to maximize cash flow. 

3. Your software is not being fully utilized:

Many times in a growing organization, bookkeepers or accounting staff create manual processes because they do not have the expertise or time to fully implement or fully utilize the software.  These manual processes are highly inefficient and can lead to errors in reporting.  A qualified part-time CFO can ensure the software is used to its full potential and create efficient processes and procedures within the department.  If new software or technology is needed, a part-time CFO can help identify, select, and implement new software as the company grows. 

4. You want to benefit from the experience of others:

A part-time CFO with a firm such a CFO Strategic Partners brings knowledge and expertise gained from other growing companies.  Why learn from your own mistakes when you can learn from the mistakes or achievements of others who have come before you. 

5. You are surprised:

A company without experienced fiscal guidance can often experience surprises when taxes are due, leases are up for renewal, bank loans renew, insurance premiums are due or renew, or unforeseen technology expenditures become necessary. A qualified CFO is always looking to the future to minimize surprises, mitigate risks, and provide proactive ideas and solutions. 

If your growing company is experiencing any or all of the above signs, you may benefit from a more sophisticated financial system and a seasoned part-time CFO.  CFO Strategic Partners has provided invaluable guidance to over 1,500 growth-oriented organizations by serving as their CFO on a part-time, full-time, or as needed basis. 

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