Selecting the right Chief Financial Officer (CFO) for a company is vital yet tricky.
But with minimum risk, properly hiring a part-time CFO who can help manage the company’s finances and financial planning might be a key to take the business up to the next level. And if it doesn’t work out, ending the engagement is all it takes. In terms of hiring a part-time CFO, there is a lot to consider.
Communication plays an integral part of this agreement. Knowing what platform is to be used and utilizing it gives an open communication with the company and the part-time CFO, considering proper communication methods to avoid the company from struggling. And with that in mind, time allotment for responses can be vital. Most companies prefer real-time or live responses and prevent delays that can hinder company progress.
Knowing what field of industry a part-time applicant CFO has on his back plays a huge role. Those with experience in the same industry can make a difference in company progress. They cut the time of accomplishing assigned tasks in half with less effort compared to inexperienced ones. Keep in mind also asking for their commitment to service, how long, and until what point. But before allowing a part-time CFO to start working on financial statements and sheets, a company must make sure to have everything laid out. Having a valid reference on hand can be a better way to find unbiased and accurate information about an applicant.
Necessary Traits To Look For In Hiring A Part-time CFO
- A part-time CFO is vital for the company, even if it is only for the short-term. Seek the expertise of a well-experienced individual within the specific field of industry. If not, a part-time CFO’s efficiency will be eliminated by the time spent on learning how the particular industry works.
- A CFOs credibility must be considered in high regard. Referring to it as “part-time” may invite less qualified applicants for the position that can have adverse or even severe effects on the company.
- It is advised to understand an applicant’s history, education, and references before hiring an individual to fill this role. Thorough review and ensuring the legitimacy of an applicant’s data then follows.
- A part-time CFOs work speed must also be reviewed. Considerable skill in getting work done fast without errors will surely make a big difference in the company.
- As an individual applying for a company, honesty, and integrity must never fall behind. And since a part-time CFOs role in the company is vital, a background check for these traits would make a difference. Character, Reputation, and track record are essential when applying to a company for an important role.
Those are just some but essential traits to look for in hiring a part-time CFO. There is still more to consider. It is also a requirement to know when to hire a part-time CFO for your company.
According to research, some small and mid-sized businesses or firms only need less than a hundred days of CFOs time each year. There may be times when they are required to work the whole week, but they won’t have much to do after that. That is where the role of a part-time CFO fits perfectly. Connection to multiple companies is one advantage of hiring a part-time CFO. That is where they can take advantage of the benefits and even ideas they acquired with previous company relationships.
A significant advantage is its low cost, unlike an in-house CFO, including payroll taxes, benefits, training and conferences, office space, etc. It is a brilliant choice to hire a part-time CFO for company savings. Outsourcing will enable access to a long list of talent that might not be available in company hiring. And since most highly experienced CFOs don’t commit full-time employment towards small and mid-sized companies, part-time CFOs are also keen on devoting lesser hours of expert insights and assistance for companies as a challenge. A well-experienced CFO gets things done for a company with an impressive skill set, such as financial reporting, bookkeeping, and critical accounting insights. With “part-time” in mind, a deadline automatically is considered. So part-time CFOs are more effective this way.