You’re the owner of a small to medium-sized business and are pulled in a million directions. Did you know that a part-time CFO can help with this? Many people don’t realize that an on-site part-time CFO can provide a financial perspective on your business operations. They can also own and complete projects that will help you have the right financial data at your fingertips to support important decision-making.
Here are five reasons you might need a part-time CFO for your business.
- You are concerned about your company’s financial future and need higher-level expertise but don’t have the money to hire a full-time permanent CFO.
Part-time CFOs are much more affordable for small to mid-sized businesses as those companies often do not require a full-time CFO to get the job done. At Rankin McKenzie, our CFOs have over 20 years of experience which makes them adept and efficient when it comes to solving company issues quickly.
- Help with your company’s breakeven point.
Most business owners understand the concept of overhead but it can be time-consuming and require detail-oriented calculations to figure out how many products or hours of service they need to sell to pay that overhead. This is known as the breakeven point and a part-time CFO can help you calculate this number and make recommendations.
- You have trouble with cash flow management.
A part-time CFO will help get a plan in place and monitor the preparation and evaluation of accurate, timely cash flow forecasting. This is key for CEOs to make strategic decisions for the business. Also, the part-time CFO can develop “what if” scenarios and use a created or revised financial model with management to evaluate future cash requirements.
- It seems like you and your staff are putting more and more time into the business but aren’t generating more profits.
A part-time CFO can assist in solving this problem by digging into the data, helping to analyze gaps, and making recommendations – whether it’s by increasing prices, creating more efficiencies in processes, or improving your profit margins.
- You’re planning to eventually sell your business.
When selling a business, the potential buyer will want to see a myriad of financial data that spans several years. If a part-time CFO knows the owner’s goals for the sale, they can help the owner set things up to their best advantage and put together a plan to get ready for the sale of the business.
As you can see, by having an interim or part-time CFO focus on the financial aspects of the business, you and your staff can focus on growing the business, taking care of your customers, and generating higher profits for the business.