By the time a company reaches $50 million in annual sales, and often sooner, it is ready to have its own full time Chief Financial Officer (CFO). That company needs the expertise, analysis, judgment and insight that a skilled CFO brings. Just closing the books and overseeing day to day activity is no longer enough.
The question is, is that ever enough? Wouldn’t a smaller company benefit from having its own CFO? Having a part time or fractional CFO in Chicago or anywhere else gives companies the option of utilizing the expertise, analysis, judgment and insight that benefit larger companies. Having the best information and judgment possible will lead to better decisions, which is at least as important to a smaller company as it is to a larger one.
A part time or fractional CFO works in your office as if he were an actual employee, even though he is technically an outside contractor. He is not there every day, but he is there as often as is required by your company’s needs.
A part time or fractional CFO is a highly qualified financial professional. Your company shares his services with other companies. Your company utilizes a fraction of his time, and pays a fraction of his cost. But cost saving isn’t the biggest advantage. The biggest advantage of outsourcing the CFO function is that your company benefits from the same expertise, analysis, judgment and insight that is available to larger companies.
Your part time or fractional CFO trains and manages your employees to efficiently handle day-to-day activity. He also addresses non-day-to-day issues (these vary based on the client’s individual needs). For example:
- Developing financial analysis to better understand results and to make better decisions
- Identifying, tracking, and analyzing key performance indicators (KPI), improving efficiencies and reducing costs
- Helping other department heads be more effective by providing more and better information and analysis
- Contributing to the strategic planning process; new (or discontinued) products, acquisitions, funding; creating financial projections
- Evaluating, modifying, or creating systems, policies and procedures where needed