A Chief Financial Officer (CFO) is an executive role within an organization that takes responsibility for finance, financial planning, mergers and acquisitions, valuation, financing and investors, and other important financial aspects of the business. Having an on-demand CFO can provide your business flexible expertise.
While a major corporation will certainly have a full-time CFO, this isn’t realistic for most small- and medium-sized businesses. Research from Robert Half shows that businesses with under $25 million in revenue have a median of just three employees in finance roles.
However, that doesn’t mean they can ignore the responsibilities that go with the role. Instead, such businesses can turn to fractional or part-time CFO services from an established firm. This allows companies to benefit from the skills and experience of a CFO for occasional or one-off services at rates they can afford.
Finding the right on-demand CFO for your business can be a challenge. That being said, doing so will provide significant savings over using an executive search firm and hiring a full-time CFO.
You can use this hiring checklist for a CFO to ensure that your business can benefit from their knowledge and experience at a fraction of the cost of hiring a full-time CFO.
1. Put Experience First When Choosing an On-Demand CFO
When hiring a dedicated CFO, large companies will look at experience first. This is a senior C-suite role that should be filled by someone with decades of relevant experience. You shouldn’t expect less for your business, and on-demand CFO services can let you access that experience at affordable rates.
As with any other hiring process, you should ensure that the firm you choose to work with employs only individuals with solid CFO experience. The services you’re hiring them for are often complex and carry high stakes, meaning your business can’t afford to go without truly knowledgeable and experienced support.
2. Find the Right Service Arrangement for Your Business
One of the primary benefits of seeking out on-demand CFO services is their flexibility. When working with the right partner, business owners can take advantage of arrangements uniquely suited to their business.
Today, the ability to carry out business remotely is one of the top considerations. Make sure that the firm you choose is able to meet your needs in terms of providing virtual or in-person CFO services.
3. Make Sure they Provide the Specific Services You Need
An on-demand CFO can provide a wide range of specific CFO services for your organization. This could include building your financial system, carrying out financial modeling, establishing valuation, rallying investors, and more. It’s important that you choose a firm that provides the specific services you need.
Different firms can target specific niches. If you aren’t in that particular niche, then hiring a CFO to work with from such a firm could leave you without the support you need. Ensure that you understand what you expect from the on-demand CFO arrangement before you start your search.
4. Choose a CFO With Industry Knowledge
The needs of any given business can vary widely depending on its industry. There’s no one-size-fits-all solution, so you should seek out an on-demand CFO with specific industry experience relevant to your business.
There are countless considerations that will vary depending on the industry – from costing to pricing, calculating bank covenants, cash flow and, of course, all kinds of regulations. Having support from a CFO with industry experience can provide your business with better results and greater security.
5. Partner With a CFO Firm With a Small-Business Focus
On-demand CFO services are often used by small- and medium-sized businesses because hiring a full-time CFO wouldn’t be viable. However, that doesn’t mean that every CFO services firm caters to small businesses.
Find a firm that serves businesses within your annual revenue range. The specific CFO services required at various sizes and stages of growth can be very different. Finding an on-demand CFO who deals with small businesses already can ensure the best outcome for your business.
Get the Support and On-Demand CFO You Need With Michigan CFO Associates
When it comes time for your business to take advantage of on-demand CFO services, you can make the best decision by going with the trustworthy financial leadership at Michigan CFO. Our team is made up of tenured CFOs with the necessary experience and knowledge to attain the best results in your company’s financial dealings.
We work with small- and medium-sized businesses across a variety of industries, including manufacturing, contracting, construction, and professional services. Our team provides remote CFO services to meet the needs of any organization across the U.S.
If you believe that your company may need to hire a Chief Financial Officer, you can schedule a consultation with our team to find out how our on-demand services can deliver both results and savings.
Featured Photo Credit: Unsplash