Growing businesses have diverse financial needs, including cash flow management, business forecasting and planning, and fiscal management. These needs must be addressed by an experienced financial professional, but many business owners struggle with the decision whether or not to hire a full-time CFO or opt instead for an interim CFO. For smaller businesses with limited budgets or small businesses in start-up mode, interim CFO services can be both a cost-effective and strategic option to continue growth and success.
What is an Interim CFO?
Interim CFOs are finance experts who come in, usually on a full-time basis, typically for a short period of time, to help steer a company through a financial crisis, an operations change, the growth stage, preparation for a sale, or the gap between one CFO’s departure and the hiring of a new one.
When does your business need Interim CFO Services?
Typically, something undesirable happening in the firm’s financial health results in businesses turning to interim CFO services. Companies don’t generally bring in an interim CFO when things are going well. It is possible to need one when a previous CFO left or was fired, or if the company’s existing CFO doesn’t have a lot of experience with systems implementation/integration, or with mergers and acquisitions. Interim CFO services will be an extra set of arms, legs, and eyes to help the ownership through those processes, including the due-diligence phase if your company is b wind sold.
Another reason your company might want to hire Interim CFO services is to take advantage of his or her specific expertise, such as carveouts, systems implementation, mergers or acquisitions, or restructuring in the event the company needs to reorganize through bankruptcy. Many interim CFOs have expertise in specific industries.
Interim CFO responsibilities
Interim CFO services can manage all transaction-based accounting and ensure that all accounting is performed in accordance with GAAP, and they oversee the monthly close. They prepare cash reports as needed, manage budgeting and forecasting and assist the management team and the board in modeling financial projections and business projections. Interim CFOs are available for a defined number of hours per week depending on the unique needs of your business.
Benefits of Hiring an Interim CFO
Your business could experience a wide range of negative impacts by not retaining the services of an Interim CFO when your CFO leaves or an event requires expertise that is not available within the company. A lack of leadership in the finance area will have an impact both internally and on external stakeholders. Also, the strategic tasks that should be performed by the CFO will not get done, which impacts executive decision-making and could result in competitive weaknesses. The absence of an Interim CFO could also lead to missed opportunities to grow the business. Below we have highlighted some additional benefits of interim CFO services.
1. Save Money
Hiring a full-time CFO can be very expensive, and small business often does not have the resources to offer full salary and benefits to these finance professionals. Interim CFO services can cater to your business’ needs on your terms – and get all the know-how without the added costs.
2. Your business will gain a fresh perspective.
Many businesses get stuck in a financial routine and remain unaware of outside practices. Interim CFO services will view your business with a fresh perspective and reorganize finances accordingly. An Interim CFO will bring vast knowledge from past clients and experiences to the table and apply it to your business putting your team on a path to success.
Additionally, due to lack of bias towards the company will allow your interim CFO to make the best objective decisions. This is very crucial when it comes to strategic options evaluation to improve performance of the company.
3. You’ll add experience and expertise to your team.
After working with various businesses in an array of industries, interim CFOs have a broad range of experience that allows them to adapt to any environment. The expertise they have gained in accounting, reporting systems, bookkeeping services, taxes and more will add to the strength and capability of your business.
Given the temporary duration of the assignment, the interim CFO is often focused and driven to provide results to the Management. The focus might not be limited to only accomplishing tasks, but to also build a strong financial foundation and creating a solid ground for a future handoff to the existing staff or an eventual replacement/graduation.
5. Big picture strategy
Thanks to extensive experience, interim CFOs are able to quickly develop an understanding of the company’s financial performance and elaborate solid financial plan to achieve targeted results. They provide a bird-view assessment of the company and apply a top-down approach to dig into details that are crucial to the company’s financial success. The difference with full-time CFO is that company can do this activity with part-time interim CFO at less cost to the company.
It is crucial to have someone in the team who is able to manage a company’s finances and keep financial house in order. That does not necessarily mean just having an accountant or a person with good number crunching skills. it means having a seasoned financial professional, who will be able to look at the company’s big picture goals from the financial perspective.
Limitless Investment and Capital’s Interim CFO Services
Is your company in need of an interim CFO as soon as possible due to the incumbent CFO suddenly quitting or falling ill for a long period of time? Limitless Investment & Capital has the expertise to immediately take over the responsibilities and provide financial advice, financial analysis and consulting, accurate financial statements, an independent viewpoint, and cost savings. Searching for a new candidate could be extremely timely as well as costly and our services ensure help to tide over the gap formed by the departing CFO and incoming CFO. Get in touch TODAY!