Thu Jul 8, 2021 | | Accounting, Business, CFO Services

Interim CFO Services: Proactive Business Choices


interim cfo services

A Chief Financial Officer (CFO) plays a pivotal role at companies of all sizes. From blue-chip organizations to start-ups, CFOs regulate cash flow, financial planning, and performance.

This chief role combines strategy with daily management. A CFO usually works as the top controller, creating financial systems that can impact an organization’s future.

Because of the required expertise, it is no surprise that companies spend, on average, more than two months recruiting and hiring C-level employees like financial executives. In-house CFOs also do not come cheaply. According to Salary.com, the Chief Financial Officer salary range in the United States as of May 2021 ranges from $299,442 to $499,992, with an average salary of $393,377.

That leaves many companies, especially small ones, in need of financial guidance and direction but unable to afford the salary demands. Many small to mid-size businesses are unaware that there are other more affordable options, including but not limited to interim or outsourced part-time CFO services.

Interim CFOs join an in-house team during critical stages of company growth. They may perform a variety of tasks for their clients, including:

  • Implementing financial controlsBuilding financial reporting models
  • Creating standard operating procedures
  • Providing financial discipline
  • Managing systems
  • Guiding one-off projects

Interim CFOs contrast with outsourced fractional (or part-time) CFO or CPA services, which are available to companies on an as-needed basis throughout the year.

At CFO Strategies, our staff can help your company. You can trust our team of financial and accounting experts for interim CFO services, bookkeeping, or virtual accounting expertise.

For more information on our services or to discover how we can support your company, please contact us today.

Should I Hire an Interim Chief Financial Officer?

Each day, you make critical decisions for your company. Your role demands a lot from you, from choosing the right supplies your company needs, all the way to hiring staff or overseeing mergers & acquisitions. If you feel that you need an executive financial controller, you may not know whether you need  a permanent full time CFO or a CFO on an as needed or part time basis.

While every business is unique and may differ in the type of financial professionals needed, securing your financial strategy early on can improve your business’s future. It’s quite possible your company may not need a full time CFO and you may be better suited to hire an interim CFO. 

The Benefits of Hiring an Interim CFO

Interim CFOs perform the same functions as permanent full time CFOs. These short-term executives have years of experience managing business growth, financial due diligence, and transitional phases.

Other benefits of outsourced CFO services include the following:

Financial Leadership

Your company may have an experienced controller or CEO in charge of accounting, cash flow, and financial reporting. However, your organization may still need a CFO to help with strategic financial planning and growth. 

An experienced CFO can simplify your short-and long-term goals into a clear financial strategy. Often, outsourced CFOs excel at financial planning, leadership, and accounting. First, they help their clients decide the best steps to achieve their goals. Then, they create financial roadmaps and processes to get them there.

Most importantly, they typically can save you, your board, and your finance department time and money in the long run.

Financial Reporting

.Interim CFOs ensure accurate financial reporting by:

  •       Creating financial projections to guide cash management
  •       Conducting regular cash flow analysis
  •       Analyzing financial statements

 

Objective Guidance

Running a business is full of stressful situations, from raising capital to managing debt, budgeting, and balancing the opinions of executives and investors.

An interim CFO offers more than just experience, they also provide objective guidance. They are trained to calmly and objectively analyze the state of your company. Then, they can provide suggestions for improvement.

Interim CFO vs. Fractional CFO

If you have considered outsourced CFO services, you have likely seen the terms “fractional CFO” or “part-time CFO” while researching. While different, both types of CFOs still focus on helping companies achieve their financial goals. 

Interim CFOs differ from fractional – or part-time – CFOs in that they perform the daily tasks of a permanent CFO for a short period. Alternatively, part-time or fraction CFOs work for your organization a few days or hours each week. Fractional and part time CFOs are permanent but do not work full time hours.

How to Prepare for an Interim CFO

Your interim chief financial officer will likely settle into their new role quickly. However, the state of your business’s development, finance department, and accounting systems could impact their onboarding.

To help prepare for your new executive, ensure the following:

  •       Clear responsibilities are defined
  •       Specific deliverables are created
  •       A performance-based compensation offer
  •       Timely assistance from your finance department
  •       Immediate access to financial documents, reports, and statements

 

Your interim CFO will bring their experience, knowledge, and training to your business. With that in mind, each company has its unique processes. As a result, even your new CFO withyears of experience in your industry, will still need to learn more about your business.

Trust CFO Strategies for Your Interim CFO Services

At CFO Strategies, we know how critical the right CFO is to your business. Our expert CFO, accounting, and financial services have helped provide companies of all sizes with the knowledge and expertise needed to improve their performance and achieve their goals.

We are committed to helping organizations improve their financial health and meet their financial objectives. For more information on how we can support your company with interim CFO, finance, or accounting services, please contact our team at CFO Strategies for a consultation.