Many small business owners are hesitant to hire someone to oversee their company’s finances because they are unsure whether the benefits will outweigh the costs. While it’s well known that a Chief Financial Officer (CFO) can increase a company’s profits by breaking down the financial information into usable data, hiring one can cost a business anywhere from $60,000 to $150,000 plus benefits per year. To put it bluntly, small business owners are right to question the value/benefit trade-off that hiring a CFO would bring to the table. However, alternatives exist that can help your company succeed for a fraction of the cost. Hiring a part-time CFO will give you a better idea about your financial situation so you can make better decisions for a more efficient, successful business.
This article aims to help you determine whether it’s time for your company to move up to the next level. Here’s how to tell if your small business needs the services of a part-time CFO:
Revenue and Growth
The first two things that you need to consider when making this decision are your business’ revenue and growth. Concerning the former, if your revenue is anywhere between $1 million and $5 million, outsourcing your financial work to a CFO will undoubtedly enhance your business. Revenue any higher than that last figure would warrant a discussion of hiring an in-house CFO. If your business’ revenue is not quite in that range, but you can foresee considerable growth in the coming months and years, you should still be thinking about hiring. Growth brings with it all kinds of complications that are best handled by a professional, not to mention that you will be too busy handling other operational aspects of your company to have time to worry about the financial side.
The more complex your business, the more you’ll need the services of a senior financial expert. If you sell, manufacture, or otherwise produce multiple products and ship those products around the country or the world, or if you offer several types of services, you will benefit from what a part-time CFO has to offer. Additionally, if your employees number in the 20s or 30s, you might want to consider finding a part-time CFO.
Major Changes to Your Company
The ideal nature of a business is to grow and change, but there are a few significant changes that may signal the need for a part-time CFO. If your company is thinking of going public, and you are interested in initial public offerings (IPOs), then you should find a financial officer experienced in the required audits. Likewise, companies that are looking to acquire or merge with another company, a part-time CFO would make the transition go smoothly. In another scenario, you may be looking for investors, and that means you need to be able to demonstrate the success and future growth of your company. A part-time CFO can help you present such information professionally.
So, do you need to hire a part-time CFO for your business? Call the professionals at Calas Group Accounting and Financial Services today. Our Part-Time CFO Service will help you get your finances in order so you can make better decisions about your company’s future.