When Should Your Company Hire a Part-Time CFO?
webmanager • May 17th, 2023
If you’re reading this article, chances are you’re considering hiring someone to help manage the finances for your company. We’re going to cover what a part-time CFO is, what they do, and when it’s time to hire one for your company.
Budgeting, forecasting, KPI tracking… it can be hard to know whether or not you’re on track without the direction of an expert.
But how do you know when it’s the right time to hire a part-time CFO for your company?
Is there a more viable option for your unique circumstances?
In this blog, we’re going to cover what a part-time CFO is, how it’s different from an accountant, and how to know when it’s the right time to hire one for your company.
Let’s jump in!
First things first: what the heck is a part-time CFO?
A part-time CFO is exactly as it sounds!
It’s when you outsource the responsibility of a CFO, Chief Financial Officer, to someone outside of the company on an hourly basis, rather than hiring the role full-time.
It’s like testing the waters of a Chief Financial Officer without jumping in full-steam ahead. Because let’s be honest, very few companies require 2,000 hours of a CFO’s time each year.
It’s a great way to cover the role of a Chief Financial Officer without the hefty price tag that comes along with it.
The role of a part-time CFO can vary from company to company, depending on the phase of growth it’s in.
If you’re just starting out and in need of business setup assistance, or you’re a multi-million dollar corporation in need of expansion assistance, a part-time CFO can help lend their expertise.
Using a part-time CFO, rather than a full-time, means you’re able to hire an expert for a specialized need depending on the requirements of your company – fundraising, monthly financial oversight, forecasting, etc. – rather than investing in a Chief Financial Officer full-time.
In short, a part-time CFO will study the company’s finances and plan a course of action based on the unique situation.
Whether that’s budgeting, managing risk, or identifying and measuring relevant KPIs, they will take control of the financial direction of the company.
What kind of companies hire part-time CFOs?
While commonly linked to tech start-ups in Silicon Valley, part-time CFOs are a popular resource for companies in almost every industry.
Tech, real estate, construction… we’ve seen companies from almost every industry benefit from the use of a part-time CFO.
Ideally, any company in between the beginning stages of business (note: you probably already have a bookkeeper) and full-blown expansion are primed for the hiring of a part-time CFO.
While the roles of an accountant and Chief Financial Officer may seem similar at first glance, in reality, they are quite different.
An accountant handles your taxes, and possibly your bookkeeping and payroll each month.
While a part-time CFO takes it one step further. They typically take on a more strategic role in the company.
Whether it’s overseeing important projects or planning the financial track of the business, a part-time CFO is there to help you make the fundamental decisions in your business.
While an accountant does tactical work from afar, a part-time CFO takes on more of an advisory role within the business.
So, Is it time to hire a part-time CFO for your company?
If you’ve made it this far in the article, you’re probably wondering to yourself:
“So, is it the right time to hire a part-time CFO for my company or not?”
Well, it depends.
If you meet any of the following criteria in your business, then it’s probably the right time to hire a part-time CFO:
However, if your business doesn’t have a bookkeeper or an accountant yet, then it’s probably too early to take that next step.
We recommend getting those roles in place before seeking the help of an experienced advisor.
However, the good news is that some CPA firms can help you cover all three.
Here at Basta & Company, we help companies financially manage their business no matter what stage their business is in.
You can find out more about our part-time CFO services here or reach out to one of our accountants for a quick 15-minute chat to discuss the best option for your business.
Have a question about part-time CFOs that we didn’t answer? Reach out to us any time by sending us a message here, we’re always here to help.
Until next time!
Samy Basta brings you more than 20 years experience in tax, financial, and business consulting to his role as founder of Basta & Company. His focus is primarily strategic business planning, empowering clients to set priorities, focus energy and resources, and strengthen operations. In addition, Samy and his firm provide strategic counsel, and technical insight, on a wide range of needs, including tax saving strategies, tax return compliance, as well as choice of entity.
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