What is a Part Time CFO and What are the Benefits of Hiring One?

June 15, 2018

What is a Part Time CFO?

 

Hiring a part time CFO is the most cost effective and efficient decision you could make for your company today. Small businesses have hurdles requiring the attention of a senior financial executive just like large corporations do. In fact, it may be more crucial for a smaller company to have financial guidance as they have growth goals and dreams of going to the next level. However, Entrepreneur.com points out that rarely can they afford top-level financial talent or even have a need for someone full time.

 

That is why more and more companies are engaging with part time CFOs. A part time CFO is a trusty business partner you can bring on your team without all the overhead and stress of a full time employee. They can help you focus on key financial elements, offer an outside perspective, and answer the most essential question, “Where is my cash going?”

 

If you’re a small business owner getting caught up in the day-to-day operations with little or no time to consider how your finances are being used, it might be time to outsource a CFO.

 

 

What are the Benefits of Hiring a Part Time CFO?

 

A Part Time CFO Will Get To Know Your Business

 

Not hiring financial help until your business can bring on a full-time CFO deprives your company of crucial expertise that only a CFO can provide. A part time CFO will provide you with the information needed at an early stage in your company’s growth cycle. Part time CFOs will first and foremost want to know the top concerns of the business owner. To help a company get on track, an outsourced CFO needs to know the key issues the company is facing. Your CFO will ask you insightful questions and deliver their conclusions in a comprehensible way. They will take the lead, conduct the conversation, and give actionable recommendations for the growth of your company.

 

A Part Time CFO Will Help You With Cash Management

 

Being able to decipher the income statements and other financial documents of your business is crucial to its growth and sustainability. A part time CFO will be able to understand where all the numbers come from and assist in developing strategies for better cash management.

A part time CFO will first address the immediate needs of your company. Strong cash management ensures that there is money to meet your short-term working capital needs like payroll, utilities, rent, etc. Having a handle on your immediate needs puts your company in a place to accelerate, grow, and plan for the future.

 

A part time CFO will chart out your future cash inflows and outflows so that you have a better understanding of what is around the corner for your business. For example, you may be wondering if your company is in a position to take on a new customer. Will that impact your cash position and the ability to serve your existing customers? Without cash management, it is difficult to truly understand.

 

Clarity Consulting will construct your numbers into visuals that are easy to navigate so that you can know exactly where your money is going and exactly where it is headed. A truly comprehensive financial strategy should guide your company’s practices into the future and clarify your financial position. Clarity Consulting can make accounting and financial planning a strength of your business rather than just another task to check off the list. Book a free Clarity Call with us today!

 

A Part Time CFO Will Push Business Growth

 

As a small business, if you try to hire a full-time CFO, you’ll put a huge burden on your company in terms of cost. This could even restrict you from hiring and building the team your company needs. A part time CFO will save you money and allow you to invest your in your talent acquisition which is vital to your growth.

 

Not only will a part time CFO free up your finances to invest in growth, they will also come alongside you and give you action steps for growth as well.

 

A part time CFO analyzes your company’s financials to gain foresight into your future profits.

Often, business owners are so wrapped up in their business that it’s hard for them to work on their business. A part time CFO is able to step outside of your business so they can see the bigger picture. They make sure that the correct systems and staff are in place to produce accurate financial information. According to LinkedIn, this enables the business owner to make better decisions about the future of their company. They’ll be able to answer questions like, “Should we invest in a commercial space, buy new equipment, or invest in new staff members?”

 

A Part Time CFO Will Improve Your Break Even Point, Margins, and Gap Between Payables and Receivables

 

One of the first things your part time CFO will want to target is your break even point. Break even points are fundamental to the daily operations of a company, yet business owners rarely give attention to it. If your company is not running at a break even point, you’re losing money everyday that goes by. A part time CFO can help track your break even point on a weekly basis so that you can know if your company is running as efficiently as possible.

 

In addition, a part time CFO can help you better understand your profit margins. Many business owners don’t know exactly where there margins lie. It’s imperative to know how your variable costs move in comparison to your fixed costs based on a certain level of sales. Your part time CFO will help you determine where to focus to improve your profit margins. Check out our previous post on how a fractional CFO can help you increase your profit margins!

 

Something else that part time CFO will consider is the difference in the number of days of sales in the accounts receivable and accounts payable. With the help of a part time CFO from Clarity Consulting, your company will be able to narrow the gap between receivables and payables. Book your free Clarity Call today!

 

Part Time CFO Services from Clarity Consulting

 

Part time CFO services can open up a whole new world of operational efficiency. We know that seeing your numbers on a daily, weekly, monthly, quarterly rhythm alone can provide amazing opportunity for growth and profit in any business. Instead of ambiguous spreadsheets, we help create a clear picture of current financials and future projections.

 

In addition to the services mentioned, we also offer assistance in the following areas:

 

HR

Once you’ve hired a new employee, Clarity Consulting is there to help with the onboarding process. We make sure they have filled out all their documents and get their direct deposit set up. If there is ever an address change throughout employment, Clarity Consulting changes it, freeing up the business owner to focus on growth.

 

Insurance

For insurance support, we help companies with their annual General Liability and Worker’s Comp audits by gathering all the certificates throughout the year and sending the payroll report to your auditor.

 

Taxes

For tax support, we communicate with your CPA and make sure your CPA strategy is being implemented throughout the entire year.

 

Becca Harper is the founder of Clarity Consulting. If you’re a small business that is looking for a partner to bring more leadership, communication, and experience, set up a free Clarity Call with us today!

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