A Chief Financial Officer (CFO) is the person that is responsible for managing and monitoring the financial performance of a company. The duties can vary for different companies. They are responsible for understanding the business and its financial strategy. This information can help you determine if a part-time CFO is beneficial for your business.
Benefits of Hiring a Part-Time CFO
The most significant benefit of a part-time CFO for small businesses is the cost. Small companies rarely have excess funds to waste. According to the Small Business Administration, a business with less than 500 employees is considered small. When you hire a part-time CFO, they only work part-time for the company, making them much more affordable than having a permanent employee. Despite working part-time, they have the same goals as a full-time CFO. Their priorities are focused on having the most accurate and up-to-date information to make informed designs. They create income statements and balance sheets to create tools for decision making.
Creating Break Even Points
A CFO for a small business is going to work on improving your margins. They understand that the profits lie in the margin and can be reinvested for continued growth. Your margin is when your income exceeds spending. Your part-time CFO has to create a break-even point to be able to understand the margin for your organization. The break-even point is the amount of money needed to cover your expenses. Knowing this number gives your business a clear understanding of the actual cost of running your business. You also gain insight into your knowledge of the cost of your business.
A CFO for small business creates a strategy for the growth of your business. To do this, the CFO needs improved reports and records. Once the records are verified to be accurate, you will receive regular reports from your CFO to make decisions on facts and figures and not gut. It is not sustainable to make widespread business decisions determined by the gut.
These benefits are just a few among a large number that a part-time CFO can bring to your organization. If you will benefit from a CFO for a small business, then be sure to get started with Nexagy today.