In case you’re figuring out how to benefit from the services of a CFO, don’t get discouraged because of your inability to employ one. You can hire a fractional CFO to enjoy many benefits, as explained in this blog.
Most companies find it challenging to hire a chief finance officer (CFO) on a full-time basis. This is because such workers are expensive in terms of salary and remuneration. However, because your firm is growing, it’s essential to find alternative methods of befitting from the solutions provided by a CFO. In this regard, you need to consider hiring the services of a part-time CFO. A CFO engaged on a part-time basis is known as fractional CFO. Using this strategy is cost-effective and ensures that you benefit from high-quality services.
A fractional CFO in a company has different responsibilities. These include assisting in attaining the desired growth, raising capital, preparing audit reports, and advising on how to surmount challenges. A fractional CFO offers different services as explained below:
Surmounting particular difficulties
Most companies hire part-time CFOs because of the need to overcome problems that are beyond the scope of the current team. Most firms might not employ this role for a full-time basis due to a lack of resources. The position is expensive in terms of salary and other payments.
The company can experience various challenges that require the attention of a CFO. These include cash flow challenges, high expenditures, advice on cost-cuts, issues with the current systems, and more.
Facing the future
One of the roles of a part-time CFO is to assist the company in formulating and implementing a future-focused growth strategy. Most positions in the fiancé department are focused on the efficient management of the current finances. However, there is a need for the firm to focus on moving from the current position to a future characterized by growth. The CFO advises the firm on what it should do to achieve the growth. For instance, the professional might tell the firm how to raise capital.
As the business grows, the systems become sophisticated. Thus, growth management can be a challenge. The part-time CFO assists in ensuring that the company grows profitably even when applying complex systems. The specialist can advise the firm on the best tools to use and the best way of managing business relationships. Part-time CFOs can assist the firm in training current employees and evaluating loopholes that lead to financial hemorrhage.
The company can hire the services of a fractional CFO to assist in achieving specific goals like merging and business acquisition. The current team might not have the skills to handle the processes that lead to achieving objectives. In terms of handling mergers, a CFO can evaluate contracts, organize accounting books, nurture strategic links, and manage due diligence.
The services of a CFO role are critical, especially when your business is growing. However, to hire one on a full-time basis is expensive for most firms. This is why you might need a part-time CFO. The primary responsibilities of the fractional CFO are captured in this blog.