Your SME is growing and you know you need to keep a close eye on its costs and structure it further to enable it to reach its full potential. However, as a business owner, you also want to spend less time on administrative tasks to focus more on your strengths and priority activities?
You are like most SME leaders at this stage of growing their business.
One way to effectively achieve your goals is to outsource the financial direction of your business. At this point, hiring a conventional CFO can be premature and expensive. However, nothing prevents you from using a CFO on a part-time basis (one or two days per week for example). In Quebec, this is a practice that is gaining more and more popularity and SMEs are finding a competitive advantage.
The gradual addition of a CFO allows you to optimize the profitability of your business without engaging in a recruitment process. When the need arises for your company to hire a full-time CFO, you can consider the permanent hiring of your CFO on a part-time basis. If he is not interested in such a mandate (after all, he is independent!), He will undoubtedly be the best resource to assist you in choosing a new full-time CFO.
CFO PART TIME VS ACCOUNTING EXPERT
Many of my clients confuse the notion of part-time CFOs and chartered accountants. While the accountant is responsible for producing your annual financial statements, managing your DAS, filing your tax returns, etc., the part-time CFO is responsible for optimizing the internal management of your business in order to increase profitability.
HOW DOES IT WORK?
Of course, as with any mandate, you must report your situation and needs to your new CFO on a part-time basis. The part-time CFO, on the other hand, must understand the business model of your company and its issues. From there, you must establish a master plan.
The tasks that a part-time CFO can assume are very diverse. As far as I am concerned, I propose the following formula to my clients:
- Ensure the daily financial management of the company
- Control and cost reduction
- Cash Management and Optimization
- Production and optimization of the various financial and operational reports of the company
- Development and / or optimization of management tools
- Put in place a financial planning and monitoring framework
- Development of an annual budget
- Development of 3 to 5 year financial forecasts
- Monthly budget follow-ups
- Development / optimization of monitoring tools (dashboards, KPIs, etc.)
- Update of the business plan of the company
- Optimize the financial processes of the company
- Process review
- Process optimization and integration of new processes (if applicable)
- Communication of processes to the team
- Control of the respect of the processes
- Play a leading role in decision making
- Support for specific projects
- Development of financial models to answer questions such as “what would happen if …”
- Participate in the search for financing
- Development of high level presentations
- Contacts with potential donors
- Presentation and answers to questions from potential funders
- Develop team skills
- Team training on management tools
- Team training on standards and processes to be respected
The leader of the company is released from administrative tasks and tasks that are part of an expertise that is not his. This way, he can look at what he does best and leave financial management in the hands of an expert. There is a reduction in costs and an increase in the value of the company. One of the most important points is that the leader will now have powerful tools to inform him in his decision making, thus minimizing his business risk.
The company’s employees benefit from better management tools, which reduces the time spent on administrative tasks. They can now put more of their professional potential at the service of the company and once again, increase its value.