A Guide for Small Businesses

Who Needs a Part-Time CFO? A Guide for Small Businesses

Founders and small-business executives have to wear multiple hats for their companies. And finding pros to offload key back-office functions is getting harder. According to at least one snapshot of small-business leaders, finding talent is a challenge for a record number of businesses. As a top executive and/or business owner, getting out of the fray to direct the company as a whole and to have an overarching view of the company is hard if you’re in the trenches day in and day out with every little task. What’s worse, the owner executives that lose the big-picture vision to plan and lead for the future are those that lose their businesses. One area where small businesses are finding efficiencies is in outsourced CEO services or part-time CFO services. Below is a guide to what you need to know about this business service.

What Is a Part-Time CFO?

A part-time CFO, outsourced CFO or fractional CFO services (all the same) is a business-to-business service for companies that need the expertise of a top financial executive but either don’t have space in their overhead or the need for top personnel.

businessman hand working with new modern computer and business strategy as concept-1

They do all the things that a CFO would do without needing to be on your payroll: enterprise financial planning, accounting oversight, compliance work and any number of needed financial services. These services are enabled by the internet and other digital technology. Proximity is increasingly irrelevant for doing business. This presupposes that a business has some kind of function online.

Why Would I Need One?

We’ve talked about two reasons why so far: in case the business doesn’t have the overhead for CFO, or the business doesn’t need a dedicated CFO. Here are a few more reasons why you might need one. The business is growing quickly. When a business starts to scale up, things happen really quickly. And even the most capable and experienced founders/executives will need a hand until they get a handle for their bigger business. Bringing a talented outsider to oversee finances is a great way to make the most of the growth period with one less thing on your plate. The need for additional financial validity. Even if you have a CFO or other financial officer overseeing the financial management of the business, contracting with a part-time CFO is a great way to show investors that you take resource management very seriously. Further, having additional insights from another pro can only improve things.

What Should I Look for in Part-Time CFO Services?

Take a minute to think about what’s vital to your company’s success. Then look for a service that emulates those things.

Group of business people celebrating by throwing their business papers in the air

Specifically, look for a few keys areas of good service. Speedy turnaround is vital to get an up-to-date snapshot of the business. Look for services that get things turned around on a normal business two-week or monthly cycle. Communication is essential to ensure your specific needs are met. Remember, contractors and other services providers work for you. They owe you their best in order to keep your business.

Now You Know. Time to Go!

Now that you’ve read this guide, why not speak to one of our personal consultants! We are beancounters extraordinaire and are more than willing to help you figure out how we can best serve your business. Let’s chat!