Wajiha Danish | July 28 2022
When a bookkeeper or accountant leaves, you must spring into action and find a replacement soon. When the CFO leaves, the task becomes 10X more urgent. More often than not, the urgency results in rash calls that derail the business from the winning track and stall progress.
Be it a blue-chip business or an emerging startup. Nobody can afford to make a rash decision in hiring a C-level executive or CFO. Thus, the best way forward is to hire an interim CFO, a pro who takes charge of your business finances on an as-needed basis while you search for a long-term solution.
However, before we talk about the role an interim CFO plays in helping your business make proactive and wise calls, let’s explore what makes CFOs special.
A Chief Financial Officer (CFO) job entails both daily management and strategic leadership. They spearhead financial planning, cash flow management, and business performance. They steer the business forward, identify & mitigate risks, and create winning strategies. The former ensures the business progress efficiently on a day-to-day basis, and the latter helps avoid risks and make winning plans.
Safe to say, the CFO is the ultimate utility player in an organization. He is a strategic thought partner that actively collaborates with all business units and extracts key insights. Then, they turn those insights into critical financial reports to help leaders make proactive decisions.
Thus, a CFO is essential for both day-to-day management and long-term strategies. Running a business without a CFO is like sailing a ship without a captain; sooner or later, you will head into troubled waters.
It goes without saying that replacing an executive is more arduous than replacing the staff. A good staffing agency can help you replace a bookkeeper or accountant swiftly. However, you can’t trust a staffing agency with an executive role. Why?
The staffing agencies share expertise in supplying talent in bulk, inexpensive candidates ready to step on board and help you run your business efficiently. They usually lack the industry knowledge, experience, and exposure to help you find exceptional directors, executives, and CFOs.
However, it is not their fault. Replacing a CFO is no less than an ordeal. You need to find a pro who knows what to do and shares a passion for it. And, finding such a gem takes time.
With rushing not an option, the only solution is to hire an interim CFO, a pro that shares both the passion and skills and is ready to step aboard on an as-needed basis.
Check Out: 7 strategic questions to determine if you have a strategic CFO
An interim CFO joins the in-house team on an as-needed basis to guide it forward and manage critical projects and financial reporting. The responsibilities of an interim CFO include:
– Forming financial reports & models
– Restoring financial discipline
– Managing resources and team
– Instigating financial controls
– Spearheading one-off projects
– Delivering strategic overviews
As per www.salary.com, the average salary of a Chief Financial Officer or CFO in the United States is $415,427. It ranges from $225,159 to $635,844 as of June 28, 2022. The high cost of hiring an in-house CFO is why the process takes more time. In reality, many small businesses just can’t afford to hire one altogether.
See Also: Hiring a CFO: 7 steps to take your business to the next level
Yes, if you care about your business growth and want to avoid financial troubles, you must hire an interim CFO. You cannot afford to keep the CFO seat empty for long as it only invites trouble. For many startups that lack the funds to hire a permanent CFO, a virtual and interim CFO is the best way forward.
Simply put, something is better than nothing. Rather than moving forward like a headless chicken, it is better to progress confidently under expert supervision. An interim or part-time CFO can become a part of your team when you need to make crunch decisions, during the tax season or when you have a resource in sight but want to fill the void till it becomes a hire.
We know how hard it is to run a business and to help make the ordeal easy, we provide virtual CFO services to help small and medium-sized companies relish all the perks of an expert at a lesser cost. Pay for the expert advice, consultation, and service. Not a cent extra!!!
Wajiha is a Brampton-based CPA, CGA, and Controller with 17+ years of experience in the financial services industry. She holds a Bachelor of Science Degree in Applied Accounting from Oxford Brookes University and is a Chartered Certified Accountant. Wajiha spearheads Monily as its Director and is a leader who excels in helping teams achieve excellence. She talks about business financial health, innovative accounting, and all things finances.