Does your company need a chief financial officer but can't afford to hire one full-time? Or does it simply need someone to help position your business for sale, see it through a special project, or temporarily replace an executive who has fallen ill or left the organization? Engaging an interim CFO may be the solution.
Interim CFOs generally have various skills and enormous experience in several industries. As a result, they can share valuable lessons and insights and potentially save your business considerable time and expense. Just as important, they can free up senior executives, giving them time to focus on specific strategies, such as developing and executing a business plan. Depending on the size and complexity of your organization, interim CFOs can cost considerably less than a full-time executive. They can help your business in any of the following ways:
Fill an immediate, pressing need.
Headhunting for a full-time CFO can be a long, arduous process. And hiring the wrong one can be disastrous and costly. You cut the risk by hiring a temporary CFO who can typically hit the ground running and adapt to your business's specific needs because of the experience gained filling in at other enterprises. Staffing the position temporarily allows you to take as much time as you need to find the right full-time executive. You may even find that the interim CFO is the right fit and decide to ask that person to stay on permanently.
Support a specific project.
Suppose your organization plans to build a new factory, introduce a product or service, or start a joint venture. In that case, an interim CFO can provide the proficiency you need until the project is completed. For example, if a new niche is planned, the temporary executive can develop financial forecasts of how the project will affect the company and its bottom line. That information can justify the undertaking's cost to potential lenders or investors.
Provide financial planning and analysis.
Budgeting is one of the most challenging tasks any company faces. A seasoned professional can develop a detailed budget, prepare monthly forecasts and compile a history of your company's financial performance. This accomplishes two goals:
- It gives you added depth and breadth in understanding the overall performance of your business.
- It helps you comply with lenders' requests for financial documentation.
Engaging a temporary CFO could ultimately demonstrate to your business's lenders that your organization's finances are in good enough shape to provide additional credit and take advantage of other financial opportunities they may make available.
Uncover and investigate fraud.
Detecting corporate fraud requires experience, training, and a certain degree of professional skepticism -- skills most interim CFOs have developed during their careers. They may have uncovered fraud at one time or another. If criminal activity is detected in your organization, an interim CFO can help your executives navigate the complex and sensitive investigation process.
Provide a neutral view.
Temporary CFOs can bring an objective, third-party perspective to help your business uncover financial areas that need improvement. They can also:
- Act as a sounding board for new ideas.
- Prepare documentation needed for a sale or an IPO.
- Facilitate a move to a new accounting software system, which can help improve the timeliness and reliability of your organization's financial statements.
Interim executives will exit your stage right after their performance is finished, and your company will have benefited at a very affordable cost.
If you think your business could profit from the services of an interim or long-term outsourced CFO, contact Greg Pepin at gregoryp@reynoldsrowella.com today.
Gregory J. Pepin, CPA, Partner
Greg has over 22 years of accounting experience, with over 19 years in the public sector. He specializes in tax consultation, planning, and compliance for closely-held businesses and individuals. Greg prides himself on being a trusted advisor to his clients for all their financial matters. Greg is one of Reynold + Rowella’s Tax Partners and leads the firm’s Managed Accounting and Family Office Solutions Group.
Reynolds + Rowella is a regional accounting and consulting firm known for a team approach to financial problem solving. As Certified Public Accountants, our partners foster a personal touch with our clients. As members of DFK International/USA, an association of accountants and advisors, our professional network is international, yet many of our clients have known us for years through the local communities we serve. Our mission is to operate as a financial services firm of outstanding quality. Our efforts are directed at serving our clients in the most efficient and responsive manner possible, delivering services that exceed the expectations of those we serve. The firm has offices at 90 Grove St., Ridgefield, Conn., and 51 Locust Ave., New Canaan, Conn. For more information, please contact Elizabeth Bresnan at 203.438.0161 or email.
