Deciding on a part-time or full-time CFO is unique to each business based on a variety of factors, including:
- The skill levels and available capacity of other finance team members
- Complexity of the business or industry
- Growth trajectory of the business
- Reporting requirements for both internal and external users
(Management, Investors, Banks, Private Equity Groups, etc.)
CFOs should be focused on the “Top 20%” -- the important analytical, strategic, and leadership responsibilities of the finance team. If the CFO is also doing day-to-day accounting transactions or filling in for other functional areas such as HR or IT, you are probably better off with a Part-Time CFO.
"Michigan CFO Associates helped us to implement analysis and planning tools that we have always wanted, but did not have the in-house expertise to create. We now have the ability to manage the business much more effectively on a monthly basis to ensure that we’re hitting our targets. Using a contract CFO 2-4 days a month is the perfect solution for a company our size."
M. Schena, President, MCM, Inc., Novi, MI
Some general guidelines to consider:
- Businesses with $2M - $20M in annual Revenue and/or between 10 and 100 employees are usually good candidates for a Part-Time CFO.
- Our typical service programs range from 1-day per month on the low end to 2-days per week on the higher end (unless there are short term projects that require additional support).
- For businesses requiring more than 2-days per week of actual CFO-level involvement on a consistent, ongoing basis -- working on that Top 20% -- a full-time CFO is probably more cost effective.
If you aren’t sure about whether your company would benefit from a part-time or full-time CFO, contact us today and we can discuss your specific situation in detail.
If you’ve never had a CFO in your business, Part-Time is a great way to dip your toe in the water and see what a CFO can do for you without the large financial commitment of salary, burden, bonus, and all the related expenses and risks of hiring a key high-level employee.