The administration of a company’s finances is a critical function. Care and consideration must be shown when doing this activity. Hiring a fractional chief financial officer (CFO) is a fantastic alternative to corporations managing their finances.
A fractional CFO, also known as a part time CFO for hire, is a financial expert hired by corporations to handle their finances part-time or temporarily. These individuals specialise in the fields of accounting and finance.
Many duties fall within the purview of a part-time CFO, but these are the most common:
- Financial and tax planning, budgeting, and forecasting are just some areas in which you may help shape the company’s future.
- Measures that support the company’s strategic goals should be developed.
- Keep close contact with the whole management team.
- Manage the departments of accounting, human resources, investor relations, legal, tax, and treasury
- Management of subsidiary enterprises and international business ventures
- You should keep track of any third parties to whom you’ve outsourced your accounting or finance services!
- This position oversees transaction processing systems
- Maintain a close eye on the company’s employee benefits programmes to ensure they are as cost-effective as possible.
- Oversee the due diligence process for acquisitions and negotiate deals
- Be responsible for reviewing and approving all SEC filings, such as Form 8-K, 10-K, and 10-Q. (if the company is publicly held)
- Recognise and reduce the primary sources of risk for the business.
- Keep track of any pending legal matters impacting the firm and the industry, and ensure that the business complies with all pertinent laws and regulations.
- Ensure that the board of directors is aware of financial results and risk problems by submitting them to the audit committee.
- Keep enough insurance coverage in place.
- Monitor cash balances and predictions; arrange for loan and equity funding; and invest the available monies.
You’ll have access to factual knowledge early in your company’s development.
A typical, full-time CFO would need you to wait until your organisation could afford the role full-time before you could reap the benefits of a dedicated CFO’s knowledge and skills. A part time CFO for hire can help your organisation acquire financial skills sooner in the growth cycle. As a result, it is possible to develop healthier financial habits early in life, leading to higher long-term success.
It aids in the maintenance of optimum team size and composition.
As a result, you may not be able to put together the team that makes the most sense for your firm if you use the traditional method of recruiting a CFO. A part-time CFO saves you money, which you can then put into expanding your company in strategic directions. Financial professionals that can provide data entry, bookkeeping, and CFO services all in one package are precious.
This tool can more effectively manage your company’s cash flow.
To build and maintain a firm, sound financial management is a need. Profit and loss statements and other financial paperwork might be difficult to grasp if you don’t have any prior experience in the financial sector. Even if your firm is highly profitable, it may nevertheless be insolvent for various reasons. A part-time CFO will be able to tell you the narrative behind the numbers and help you devise efficient methods for improving your cash flow.
Being proactive with your future growth goals is made possible by this.
A company’s future development can only be predicted and prepared for if you factor in your existing and forecasted financial situation. Having an outsourced CFO on your side may help you prepare for and get funding and help you decide whether to invest in new equipment or commercial real estate. In addition to their day-to-day duties, these experts may be invaluable strategic assets for your company.