Also sometimes referred to as an outsourced CFO, a part-time CFO can serve as an on-demand financial advisor, or as a “permanent part-time” member of your executive leadership team.
Sometimes, a transitional period for a company warrants some additional executive firepower – a financial expert who can step in, lead the charge, and then step away once the transition is complete. The right fractional CFO can serve in any of these roles.
It can vary by organization, but, in many small- to medium-sized businesses, the CFO plays a strategic role in the overall financial and operational management of the company. Upper management relies on the CFO to provide a high-level financial strategy for the company. Then, in an oversight role, the CFO helps to implement and refine that strategy over time.
A CFO typically has broad oversight, including:
A CFO also provides crucial operational insights to management, courtesy of a robust monthly financial review. This includes a tailored dialogue with company leadership, focused on key metrics.
Numbers can seem like a foreign language to many people. A good CFO can translate.
Let’s face it – every organization runs more smoothly with effective financial processes in place.
Hiring an experienced CFO frees you up, so you can focus on your business and what you do best. Another upside? The right CFO serves as a vital part of your leadership team, helping to develop and implement your long-term strategy.
Glance again at the bulleted list above. From overseeing accounting to serving as the direct contact for bankers, lawyers, auditors, and insurance brokers, the CFO handles all the stuff that most business owners don’t like to deal with.
Having a seasoned pro handle the financial aspects of your business can lead to increased profits and growth. A steady hand at the rudder can also make your company more attractive to lenders and investors.
Let’s consider that bulleted list above one last time. Giving any one of those areas insufficient attention courts significant risk.
Sloppy accounting invites costly, time-consuming financial statement audits. The absence of a long-term financial strategy hobbles decision-making. Slipshod tax planning yields less-than-optimal results. Unread client contracts and supplier terms can lead to noncompliance and unmitigated exposures.
The pitfalls of “going it alone” are numerous. Here are two commonplace scenarios, as specific examples:
In today’s marketplace, an experienced, well-qualified CFO typically commands a salary of $250K or more, plus bonus and benefits.
A fractional CFO gets you an experienced financial executive without having to pay full freight. Moreover, the right outsourced CFO can strengthen your leadership team and save you money in the process.
When you crunch the numbers, it’s important to consider the opportunity cost. If a fractional CFO can help your company grow and increase profits, what’s that worth to your organization? If bringing rigor and transparency to your bookkeeping spares you an expensive and time-consuming audit, well, that’s money that stays with you and doesn’t fly out the door.
So the real question becomes: “What does it cost to go without a CFO?”
At Heath Advisory, we’re business people at heart. We have a knack for clarifying and simplifying complex financial issues. That makes your decision-making easier, so you can lead your team with confidence.
We meet you where you are as a company. Think of us as a seamless, plug-and-play CFO, providing just the experience and expertise you need. No more, and no less.
Use the main nav to learn more about our background and services. Or, get in touch to discuss how we can add value to your leadership team. Reach us anytime at info@heathadvisory.com.