Revised and updated Nov. 2019
When you’re starting a new business, a part-time chief financial officer can help you manage the company’s finances and financial planning. However, finding the right seasoned professional with the experience you need for your company could be a challenge.
To help steer you in the right direction, we asked the members of Young Entrepreneur Council the following question:
Q. What is an important trait you should look for when hiring a part-time CFO?
1. Credibility
CFOs play a significant business role, regardless of your industry. You should always keep credibility in mind when looking for a part-time CFO. The “part-time” aspect of the deal might encourage less-than-qualified candidates to apply for the position, which can have potential repercussions on your business. Always consider credibility before, during, and after hiring a CFO. —Blair Williams, MemberPress
2. Cultural fit
When looking for a part-time CFO, consider whether the candidate will be able to fit in with your company culture. A part-time CFO will not be in the office a lot and won’t be putting in full days, so they’ll have fewer opportunities to connect with your team. Consider looking for a CFO who’s familiar with collaborative tools like Slack so they can still connect and interact with the team. —Stephanie Wells, Formidable Forms
3. Able to meet your specific needs
The requirements of a part-time CFO differ from one who’s full-time, so it’s essential to know exactly what you need them for. Make a list of the tasks and responsibilities you need a CFO to do so they will be successful at your company. This makes it easier to ask them the right questions and get the answers you need to make informed decisions. —Jared Atchison, WPForms
4. Qualifications
There are people out there who will try to manipulate business owners to get to an elevated position, such as CFO. When you’re looking to fill this role, make sure you check their qualifications so you can better understand their work history, references, and education. Once you’ve compiled all of their qualifying data, dig deeper and make sure that everything is legitimate. —Syed Balkhi, WPBeginner
5. Longevity
Even if you only intend on hiring a CFO part time, you should always approach the recruitment process as if it were for a long-term, full-time position. Even though this person isn’t going to be devoting all of their time to your company, it doesn’t mean they shouldn’t be highly professional, trustworthy, and a positive representation of your brand. —Bryce Welker, The Big 4 Accounting Firms
6. Encourages data-driven growth
Make sure your part-time CFO isn’t only great at tracking and recording data, but that they are also great at identifying ways for the company to improve and grow based on the data collected. Can your CFO offer insight and tips in addition to keeping an eye on the books? Of course, the CEO is wanting to grow, but the CFO can see what is realistic and make data-driven suggestions for growth that is long-term. —Diego Orjuela, Cables and Sensors
7. Their available bandwidth
Part-time CFOs are a fantastic solution for many smaller companies. That being said, if you are looking for a part-time CFO, make sure that their part-time hours are used looking out for your company’s best interests. A CFO’s time isn’t cheap, nor are their responsibilities light. It’s OK to ask, “How many companies are you serving right now, and what do you think your capacity is?” —Yaniv Masjedi, Nextiva
Other Articles From AllBusiness.com:
- The Complete 35-Step Guide for Entrepreneurs Starting a Business
- 25 Frequently Asked Questions on Starting a Business
- 50 Questions Angel Investors Will Ask Entrepreneurs
- 17 Key Lessons for Entrepreneurs Starting A Business
8. How much help you truly need
You’re not going to get much more than advice on core financial business matters and don’t expect help with any complex financial areas. That said, they can be an asset if the help you need is rather basic and you don’t need a full-time CFO. Just make sure that you are unable to handle the job yourself or can hand it off to a trusted team member if you think that’s viable. —Andrew Schrage, Money Crashers Personal Finance
9. An understanding of your business
Hiring a part-time CFO can help the company focus on key financial elements. When deciding to hire a part-time CFO, look at their experience and the industries and companies they’ve worked with. It’s really important to find someone who understands your business, can easily identify the main issues, and can bring solutions to the table that will positively impact the company’s strategic plan. —Chelsea Rivera, Honest Paws
10. Honesty and integrity
When looking for a part-time CFO, I look at the person’s work history, track record and reputation. I believe that the best way to know if someone will do good work is to see what they have done in the past. Additionally, I look for people who have a reputation for quality work and good character. —David Chen, Sharebert
11. Aligned vision
A part-time CFO can be a very valuable addition to propel your company to the next level. I think that aligned vision is a key component. You want to make sure they are on board with your growth goals and feel that they can deliver. Having a very reactive CFO when your vision is aggressive and bold can cause strife. Ensure that they are as proactive as needed to match your vision. —Joel Mathew, Fortress Consulting
12. Detail-oriented
Hiring a part-time CFO provides a business with access to a professional with years of experience, without taking on a high annual salary. One of the important characteristics to look for before hiring is how detail-oriented the individual is. Your CFO will be responsible for seeing the big picture of your business’s financial past, present, and future. —Blair Thomas, eMerchantBroker
13. The ability to assess and predict
Much like Maslow’s Hierarchy of Needs, a business has a hierarchy of needs. Different businesses have different needs at different times. My advice is to hire a CFO when your business has several successfully operating parts, but you’re not sure where to take it next. At this point, you need someone who can assess the dynamics of your overall financials and make predictions about the future. —Shu Saito, Godai
14. Specific industry experience
A short-term CFO is more than a temp to work in the accounting department. It is vital that the CFO position, even in the short term, be occupied by an individual who has in-depth experience within the particular industry. Otherwise, the learning curve regarding how a particular industry works will eliminate the efficiency of a short-term CFO. —Ryan Bradley, Koester & Bradley, LLP
15. True value
I have watched friends who operate very early-stage businesses spend heavily on part-time CFOs and come to regret it. In hindsight, they didn’t really need a part-time CFO and would have been far better off spending their limited resources elsewhere. Carefully evaluate just how valuable a CFO-level resource is to your company at its current stage relative to alternative avenues you could pursue. —Adam Mendler, The Veloz Group
16. Industry knowledge
Hiring anyone part time means that they won’t know the ins and outs of your business. That brings extra risk when you’re considering finance and accounting. If you’re going to have someone be part time, make sure they’re well-versed in your industry. You need a finance partner who understands the nuances of your space and will protect you from any unforeseen risks. —Aaron Schwartz, Passport
17. Flexibility in methods
Every industry is different and each business in an industry is at least slightly different. As a result, the methods and practices used to track and report the fiscal and operational health of a business are different. Part-time CFOs that attempt to force preferred methods into businesses will harm them; part-time CFOs that change their methods to fit the business perform better. —Eric Mathews, Start Co.
18. Efficiency
Some might rank trust and loyalty as crucial, but those traits should be standard requirements and also easily covered by legal documents. Their ability to work fast and effectively will make a huge difference to your bottom line, which is the reason you’ve hired part time. Either there isn’t enough work or there isn’t enough budget. Either way, you can focus on value/time. —Nicole Munoz, Nicole Munoz Consulting, Inc.
19. Hyper-qualifications
When hiring a part-time CFO, you’ll probably have the opportunity to hire someone who is more qualified than the person you could hire as a full-time salaried employee. We hired a part-time CFO through our bookkeeping service on a project basis when we found our bookkeepers needed more assistance. Luckily, we were able to hire someone who’s much more qualified than we could have afforded full time. —Matt Wilson, Under30Experiences
20. Similar experience in your space
Unless you are doing complex financials, most small companies do not need a full-time CFO. Instead, find someone (or a boutique firm) who knows your industry really well. They’ll help you build the appropriate models/categorization, know which financial metrics are key to your survival (so that you don’t go bankrupt from growth), and help you plan and build a successful venture. —Charlie Graham, Shop It To Me, Inc.
21. Role clarity
The need for a part-time CFO may arise if there are some financial leadership needs. To ensure you’re getting what you need from this role, you must identify why you’re hiring a part-time CFO and make the job requirements and outcomes clear. What meetings must they attend and what is their role in the meeting? What reports do they need to see? Should they be creating those reports? —Baruch Labunski, Rank Secure
21. External representation
Make sure that whomever you hire has the time for you, and can also represent your brand externally, equally, or better than their other clients. Anything that falls short of this really can be accomplished by a consultant, rather than a CFO. Additionally, pay attention to how they represent their past work and clients’ success rates. Deep vetting, especially where finance is concerned, is critical. —Matthew Capala, Alphametic
RELATED: How an Accountant Can Save Your Business Money at Tax Time—And All Year Long
The post How to Hire a Part-Time CFO to Take Your Business to the Next Level appeared first on AllBusiness.com
The post How to Hire a Part-Time CFO to Take Your Business to the Next Level appeared first on AllBusiness.com. Click for more information about YEC.
No comments:
Post a Comment