Strong financial management is vital to companies of all sizes; as each face unique financial challenges. CFO services can help manage and improve company performance by offering valuable insight and financial expertise. For small to mid sized companies who need an experienced chief financial officer but can't justify the expense of having one full-time; choosing a part time CFO is the perfect solution. Here are 3 tips for choosing which one is right for your company.
1. Experience. - Choose a professional with over 20 years experience. Someone with this level of experience has already 'battled' diverse challenges and is capable of handling all problems or issues your company faces. Be sure your part time CFO is backed by a national organization capable of giving them the needed resources and support. They should be able to proactively address sales and marketing issues, HR issues, counsel management, guide staff towards financial and improved management solutions and much more. Ultimately, they should have the knowledge and experience needed to help you run your company properly and help it be successful.
2. Avoid contracts or paying a return on profits. - You don't have to sign a contract to receive quality CFO Services. If the company is competent and confident, a hand shake will bind like a contract. It is also important to remember to avoid any company expecting a return on profits. This money belongs to your company and no other has a right to any claim on it.
3. Set limits to monthly fees. - Make sure the monthly fees required are a comfortable fit within your budget; there should be no surprise fees and also a 'ceiling' set for all fees quoted. Pay your part time CFO on a 1099 form basis and avoid health insurance, payroll taxes and more.
Choosing the best part time CFO for your business can be vital to the success of your company. Take time to find out more about each company, such as the success they've had with companies like yours and the amount of experience they have. Find out what resources and support they have backing them up. Bind your partnership with a hand shake and not a contract, and set limits to required monthly fees. Through CFO services, your company can improve profitability, gain competitive advantage and ultimately succeed.