Small Business Finance. 1- Turnover & Profit..
What is an interim CFO?
A Chief Financial Officer, or CFO, is a person that is trained to maximize the cash flow of a company and improve the amount of profits that are being made. They specialize in helping a business improve their bottom line. A part-time CFO can do all these things for a company, but they do so without being on your books full-time.
It is a shame that the companies in most need of a CFO often do not have the budget to hire a skilled one. C-Level executives tend to command high salaries that are very difficult for new businesses to afford. For companies in this situation it is best to hire someone part-time, like an interim CFO, who can make sure the business is functioning correctly and can install certain best practices for the staff to follow when he or she leaves.
The duties of a part-time CFO are numerous and include taking care of all the company’s financial and accounting reports, and ensure they are carried out correctly. This means preparing budgets, dealing with tax and audit function, and developing the tools and systems that can be used to streamline all these business functions. The CFO will have access to sensitive financial information so he or she can make valid recommendations about the company’s strategies.
A CFO will also be in charge of budgeting and spearheading strategic plans for managing the company’s cost profile. Informed decisions about a company financial process can only be made by an experienced professional like a CFO. More information like this can be found on the CFO Strategies LinkedIn Page.
Other duties for part-time CFOs include monitoring company cash flow, financial projections based on current sales figures, and profit allocation. Any CFO, even those on a part-time basis, must cultivate the business’s relationship with their lender of choice.
A part-time CFO will also be responsible for teaching the current staff to maintain proper financial procedures after he or she has left. That way the company will know that they spent their money well. A CFO should also create and build important relationships with lending institutions or other important financial members of the community.
Some businesses have found that hiring a part-time CFO can be an important stop-gap and financial safety measure. It is astounding that one hire has the potential to turn a company’s financial standing around and put them on the path of profitability.
Of course, there are costs associated with hiring a part-time CFO, but it will be significantly lower than bringing on a new corporate executive. Between the high salary and the benefits that would be required, it could be a pretty tough addition. Take a look online to find some highly qualified CFOs that can help you take your business to the next level.
CFO Strategies is unique in that they offer a part-time CFO to businesses in very specific industries and fields. The professionals that they engage with have many years of experience from which they can help the businesses they are assigned to. When someone hires an interim CFO for financial statement analysis, forecasting or audits it is important to know that the CFO is extremely focused on results. Business owners need to be put at ease with the expertise and professionalism of the person handling their books. The responsibilities of chief financial officers are vitally important to the healthy function of a business.
Many start-ups or local businesses have a lot to gain from having the sound counsel of a CFO. Although the costs are sometimes high, a CFO can save your business far more money than they take from it.