Why Hire a CFO?
Have you been a little bit too profitable this year (as if there were such a thing)? Do you want to prepare your business to be sold for the maximum profit possible? Are you staying up at night concerned about tax compliance? Are you unknowingly overpaying on your taxes because you are failing to take advantage of the most advantageous tax laws? If any of these challenges sound like you, we have the exact service you need to resolve all of your concerns. If you want the very best results, you should consider hiring a part-time CFO (sometimes called a virtual CFO).
What is a CFO?
A CFO or Chief Financial Officer is a corporate officer in charge of financial matters for a company. This person manages financial planning, taxation and compliance issues as well as reporting. CFOs are also the ones who track cash flow, analyze financial strengths and weaknesses and propose corrective actions, if needed. They are often considered the 3rd most valuable or highest person in the company (under the CEO and president). CFO’s fill an executive-level position, typically reporting directly to the CEO, Chief Executive Officer, and is key in guiding a company towards financial growth and success. The best and most effective CFOs will have a strong academic background in economics, finances and/or analysis.
Who Should Hire a Part-Time CFO?
According to Salary.com, the median annual salary for a CFO is $416,641. On the low end, they make about $225K/year, and on the high end, they bring in $637k/year on average. As you can see, most medium-sized businesses simply cannot afford to pay a full-time CFO’s salary year after year. For medium-sized companies, a full-time CFO that must be paid for over 2,000 annual labor hours (plus benefits) is way too expensive and it’s simply overkill. However, almost every mid-sized company would greatly benefit from a CFO’s financial expertise and advice significantly. CFO’s are masters at increasing profitability, and we all know how important it is to increase the bottom line in today’s competitive marketplace.
Since CFO salaries are typically very high, most small to medium companies do not even bother to have a CFO position in their company filled by a fully qualified professional. They mistakingly don’t think it’s possible or even an option to get a reputable CFO to fill this roll in their company, but it is.
Orlando’s CPA Accounting and Tax Services is available to serve as part-time or fractional CFO for companies that need this sort of guidance, but are not able to create such a high-paying position in their company. We will fill this role, on a temporary basis, to get your organization in the right direction in regards to operational and financial matters.
Taking a Closer Look at Your Business
Whether you need us for a few days, months, or years, we can partner with you to ensure the best possible financial future for your business. The process begins with us gaining an understanding of pertinent financial issues and company goals, both long-term and short-term. We will collaborate with you to determine a course of action that will achieve these goals, along with a timeline of what it will take to accomplish them.
What Do Our Part-Time CFO Servies Include?
- For starters, possibly the biggest benefit you will receive is having more of your time back. This can provide you with more time to focus on things mission-critical tasks like gaining new customers, improving customer service launching new services or products, increasing customer retention rates, or focusing on other core business issues.
- You will gain an increased understanding of how to efficiently run the financial side of the business which translates to less surprises and a lot more certainty concerning the future.
- With knowledge comes power and the ability to make better decisions. By clearly seeing the “real” numbers of the business, decisions will become clearer concerning the finances and direction of the company.
- We will act as a sounding board for bouncing ideas off of. At the same time, we will help you accountable to our goals and company vision.
- You will sleep better at night knowing that the financial side of your business is under the constant watch and guidance of your new CFO.
- Budget monitoring and prep.
- Identify and analyze business specific and industry trends
- Profitability analysis specific to product and/or service.
- Improved timeliness of financial information.
- Cash Management.
- Improved quality of financials.
- Assistance in quantifying goals and defining long-range goals.
- Mangage and train your accounting staff.
- Custom-designed collection procedures and policies.
- Acquisition and merger insights and assistance.
- Analysis of business expansions and large equipment purchases.
- Development of in-house accounting SOPs and manuals.
- Assistance in bank loans including negotiations.
- Negotaite and review insurance policies.
- Implementation of tax reduction strategies when applicable.
Call Our Orlando Office at (407) 382-6658 to Schedule Your Initial Consultation
What Companies Can Best Use a Part-Time CFO?
This is a great question, So what are the main attributes for businesses that should hire a part-time CFO? The companies that would benefit the most from part-time CFO services tend to have the following attributes in common:
- Gross revenue ranges from $1,000,000 to $30,000,000 in annual revenue.
- Number of full-time employees ranges from 10 to 100.
- Has a strong bookkeeping team in place.
Best Time to Add a CFO
When is a part-time or fractional CFO needed? There are several occasions or situations that cry out for this type of financial leadership: when a company is new or expanding into a new area, when a company is growing or changing in other ways (acquiring or merging with another company), when a company is without this type of leadership temporarily, due to someone retiring or because the lack of financial expertise has just been identified. These are some of the main examples of why a part-time CFO is needed, but it’s not an exhaustive list.
Other Situations that Often Call for A CFO
What are some other common situations part-time CFOs encounter? This depends on the needs of the business and the desires of it’s business leaders. It can be a very wide range of situations and responsibilities that require a CFO’s expertise, but here are some other common situations. They are often asked to collaborate with senior leadership to develop a strategic financial plan to guide the business toward its financial goals. Many times, they are called in to support a merger or acquisition. If a business is being sold or passed down to a junior partner or heir, a CFO may be asked to provide their expertise and objective advice. A business that is struggling may also hire a part-time CFO to help them turn things around before it’s too late and the doors close permanently.
If you own or have an interest in a business that is in one of the mentioned situations or is otherwise in need of some financial guidance, call CPA Accounting and Tax Services today at 407-382-6658. We would be honored to support you with our years of experience and expertise. We serve businesses in Orlando, FL, and throughout the United States.
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