Statistically, most companies fail because controlling finances and taking business forward is challenging to say the least. However, hiring a CFO (Chief Financial Officer) in the company has never crossed their thoughts.
Why? Because for small business owners, it may sound like an unnecessary expense, while large and successful companies have their in-house financial management team.
Here’s a solution for small business owners and organisations not ready to invest in full-time CFOs. This blog will cover:
- What is a part-time CFO?
- Why should you hire a part-time CFO?
- Tips for hiring a part-time CFO
- Qualities to look in a CFO
What is a part-time CFO?
A CFO or Chief Financial Officer is a C-level position responsible for maintaining the fiscal health of an organisation. They are not only limited to building a top-notch finance team but ensure a balance between revenues and expenses, help in financial planning and analysis, advise on mergers and acquisitions, fundraising, and work closely with the budgeting head of the company.
A CFO is also responsible for maintaining the accuracy of financial reports and consults with the board of directors for making financial strategies.
A full-time CFO in a company can be expensive; therefore, you can look for CFO services that offer part-time services or outsourcing facilities. They provide necessary services to small businesses, thereby reducing business costs.
Why should you hire a part-time CFO?
- They are affordable in comparison to hiring a full-time CFO.
- They help reduce overall costs by allowing businesses to outsource non-core Financial activities.
- They have a high and robust skillset and years of experience working in your industry.
- They can reassure external parties like lenders, auditors, brokers, and banks about the company’s fiscal health.
- They have a good social network and can introduce you to valuable partners
- They act as a personal advisor while making financial decisions
- They help you raise funds and equity
- They are experts in handling financial data
- It saves you time and allows you to perform other essential business operations.
- Improves Financial awareness
- Find a solution to critical problems in business
- Helps in creating cash flow forecast
- Takes part in tax planning
Tips for hiring a part-time CFO
1. Set your goals
It is good to have a clear idea of your business goals before you hire CFO in London. It means you have a note of all your problems that need professional help. For example, you want a CFO to help you improve cash flow, reduce expenses and maximise revenue.
2. Ask for referrals
Hiring a part-time CFO in your company is an investment. You need to have a candidate with the right experience and knowledge. Take at least two to three references from close friends or colleagues in a similar industry. Business owners who have worked with a CFO can provide you with an accurate representation of what you can expect from them.
3. Check for the best candidates
- Education: Most CFOs belong to a business, economics, finance, or management background. The primary route to becoming CFO is completing a bachelor’s and master’s degree in accountancy and acquiring an ACCA certification or a professional finance qualification from CIMA.
- Experience: Look into the working knowledge of a CFO. The more years spent in this field, the better is their understanding of how to solve complex financial situations in a company.
- Area of expertise: The educational background is almost similar for maximum CFO; they can have a different area of expertise. While hiring an individual, you need to ask about their specialisation and ensure they are a good fit for your company.
- Knowledge about your industry: Understanding your industry is necessary to develop correct and quick solutions. Ask if the candidate has previously worked with similar businesses and took control of their finances.
- Service fees: They can charge you according to the services you want or the hours of work they provide. You need to assure the costs of hiring them and ask if there are any hidden costs.
4. Look into client reviews
A great CFO must have the ability to build and nurture relationships with clients. Several client review platforms may offer you ideas about the working of the CFO.
It becomes difficult for an individual to go through so many steps. Therefore, he can ask a CFO firm to provide part-time services according to your company’s needs. They are aware of the candidate’s education, experience, and quality of work.
Qualities to look in a CFO
Here are a few qualities to look for in a CFO before hiring them in your company. Why is it important to focus on such attributes? It ensures you select the right candidate to hand over your business’s financial data and stay worry-free when they handle your economic activities.
Some of the main qualities in a CFO are:
1. Money management
When you are trying to hire a CFO, you must look at whether the individual has good money management skills and an understanding of your industry.
2. Logical and trustworthy
Logic is the essential requirement of an individual to become CFO, as they are responsible for managing the financial actions of an organisation. Also, any business cannot rely on a person who is not trustworthy. So, logic and trust in an individual are essential.
3. Leadership quality
A CFO needs to communicate well with the financial team and be able to share important information with the owner and forecast the company’s future. Therefore, they require a strong leadership capability.
These individuals should have a result-oriented mindset that assures their tendency to set and meet goals, motivate the team, and provide the best quality services.
A CFO needs to be self-disciplined. For example, if he has a task to do, he must complete it in time, no matter how long it takes.
A versatile CFO can adapt to any change in the organisation quickly. The working environment of an organisation keeps changing and the financial status. Therefore, versatility in CFO means staying prepared for any situation in the company.
A part-time CFO needs to be a good delegator who can delegate different financial activities to other accounting team members. They are not full-time employees and, therefore, are not responsible for delivering all the tasks in the company.
One essential skill considered while hiring a part-time CFO is oral communication skills. Owners want a CFO who can communicate during complicated situations and delegate tasks among tough subordinates.
A part-time CFO must be passionate about working in an organisation efficiently using all their talents and skills. They shouldn’t be among those individuals who leave in the middle of work and never meet their goals.
10. Attention to detail
Undoubtedly, attention to detail is an important quality you look for while hiring a part-time CFO to avoid any small mistake in the business finances.
A part-time CFO will understand your company’s financial health and plays a big part in making critical financial decisions.
It is imperative to hire the right candidate for a business to avoid unnecessary issues in the future. Therefore you can apply for professional CFO Services London to help you get the best chief financial officer for the company.