Effective financial management is at the heart of every successful business. It’s a fact that’s especially true for organizations experiencing rapid growth.
While internal accounting and finance teams can manage financial operations in-house, it’s advantageous to leverage the expertise and leadership of a Chief Financial Officer (CFO). A CFO provides the executive experience needed to plan for upcoming financial changes, manage cash flow, boost profitability, and, ultimately, guide your business toward its strategic financial goals.
Of course, hiring a full-time CFO is a big decision — one that carries financial constraints, hiring challenges, and organizational roadblocks. Fortunately, you don’t have to jump into the deep end with a full-time hire.
A part-time CFO, also known as a fractional or outsourced CFO, is an excellent option for many organizations. They provide the same financial expertise and leadership, just in a more part-time capacity.
Of course, there will be distinct differences in each hiring option. In this article, we’ll explore how businesses can best make a decision on which CFO role is right for their needs and uncover some actionable strategies to vet the right candidate.
G-Squared Partners serves as a strategic financial advisor to businesses across various industries and growth stages, providing a sophisticated suite of outsourced CFO, accounting, and bookkeeping services. To learn more about how we can support your business, schedule a consultation now.
Before we dive into the differences between a part-time and full-time CFO, let’s first explore what these financial professionals bring to a business. Here are some examples of key tasks often covered by a CFO:
This list is by no means exhaustive. CFOs should always customize their approach to the unique needs of a business. No business will have the same needs as another, and as such, a tailored approach to financial strategy is always necessary.
A part-time CFO is exactly that: part-time. They offer the same level of expertise and guidance, just in a capacity that fits the needs of each specific business. A part-time CFO’s goals will align with the goals of a full-time hire. That means they will increase operational efficiency, save money, and free up resources and time for other leadership roles and internal financial teams.
With the median compensation of a full-time CFO being around $400,000 a year, part-time CFO services offer strategic financial guidance at a far more affordable price point.
Another key difference is that a part-time CFO will come ready with flexible strategies to meet dynamic challenges as they develop. From outsourced bookkeeping to accounting, they provide comprehensive coverage of essential financial tasks, scaling services up and down as needed. It pays to utilize a part-time CFO as the right partner can become a one-stop finance solution.
How can a business determine if a full-time or part-time CFO is the right fit for their needs? Let’s explore some of the factors that can help you decide on which route to explore:
The right part-time CFO covers more than just essential financial tasks; they’ll become a strategic advisor with a wealth of wisdom and guidance. But choosing the right CFO is easier said than done. Here are a few things to consider when selecting a part-time CFO:
It’s also important to bring in relevant team members and individuals whose opinions you trust after the initial interview is over.
Above all, avoid inexperienced candidates, those without specific industry understanding, or those with poor communication skills. This isn’t a simple hire; this is a mission-critical leadership role.
To check all these boxes, go with an experienced and reliable team, like the financial experts here at G-Squared Partners. We’ve delivered exceptional part-time/outsourced CFO services to numerous companies and have the track record and case studies to prove it.
A part-time CFO, also known as an outsourced CFO, offers valuable expertise and financial guidance. Depending on the size of your business, your specific needs, and your financial maturity, a part-time CFO can present a strategic option that offers value without constraining your budget.
But choosing the right partner matters. Always choose a CFO who understands your industry and is willing to work with you and your team to define goals and plan for the future. Whether you're a small business or high-growth startup, working with no internal financial team, or just need expert guidance for specific tasks like raising capital or M&A, a part-time CFO can be a great addition to your team.
G-Squared Partners delivers experienced and reliable financial experts who can provide customized part-time CFO services to businesses across various industries. We understand your unique needs and provide only what you require to achieve success.
Contact G-Squared Partners today to learn more about how we can help your business thrive with a part-time/outsourced CFO solution.