The Benefits of an Interim CFO vs. Hiring a CFO
When your company is approaching a pivotal stage of growth, a financial executive can help set you up on a strategic path. But the question is: do you need a CFO indefinitely, or do you need an Interim CFO to get your company in a good position?
Here’s a look at the advantages of both situations.
Should You Hire a CFO or Outsource an Interim CFO?
Source: pcg-services.com As a business owner, you are faced with many choices. If you’re in start-up mode, you are managing just about everything in your business, from bookkeeping to sales, from rainmaking to employee management and probably even a little HR thrown in just to keep things interesting. There comes a time in your business when having someone on your team at the C-Level to oversee your company’s finances is a vital component to your success and growth…and the guess what? That time is probably…NOW. Let’s take a look and the ins and outs of hiring a Chief Financial Officer (CFO) for your company. One of the tasks most often overlooked in a small business, especially in start-up phase, is making sure that your financial house is in order. That doesn’t mean just hiring a bookkeeper or accountant. It means having an experienced financial professional looking at your “big picture” goals and the company’s intended outcomes, from the financial point-of-view. So, the magic question is: “Should I hire a CFO, or would it be better to bring on an outsourced interim CFO?” It’s not always an easy answer. You may even be asking yourself “What is an outsourced interim CFO anyway?” Many start-ups decide that hiring a CFO from the onset is a great way to help them to navigate their financial path. After all, it makes perfect sense to get your CFO in place early so you can capitalize on their expertise, provide strategic financial insight, and create projections, budgets and cash flow forecasts. But in many cases, hiring a CFO may not be a great fit for your company, at least in the beginning stages and here are a few reasons why:
It’s a bit of a double-edged sword, isn’t it? You certainly want the professional guidance of a qualified financial officer; someone seasoned with years of experience, ideally in your industry. Yet, you don’t want the headache of making the wrong choice with a decision as important as hiring a CFO. So what is the answer? The simple answer could be hiring an outsourced CFO. Here are just some of the many advantages to using this potentially powerful strategy:
Hiring an interim CFO is substantially less expensive than hiring the wrong “in-house” candidate. You won’t have to leap into a full-time salary, or negotiate stock options and the other perks and benefits that typically go along with keeping an in-house CFO happy and motivated. There can be a downside as well, but the pros far outweigh the cons. For example, management effectiveness can be limited because he or she may be perceived as an “outsider” or “short-timer” from your staff’s perspective. But a solid candidate for interim CFO will also have the ability to enroll your team into his vision. Another potential drawback could be that your interim CFO might lack the authority necessary to do the job right, but you can solve that problem by entrusting the right candidate with the necessary authority to move forward with his key roles. There are always pros and cons to any executive hire, whether internal or outsourced. One of the biggest advantages of hiring an interim CFO is that is gives you time. Time to set up systems and test your financial methods. Time to organize and vision for your company’s future. And perhaps most importantly, the time you need to make the right long-term decision regarding your ideal CFO candidate. Making the right choices to hire an outsource interim CFO may be the difference between success and stagnation in your business. Consider it carefully. |
How Do You Hire an Interim CFO
We can support your need for an Interim CFO and facilitate your hire with our specialized interim resources. Learn more about the key initiatives we support then get started by connecting with our team. You could be meeting consultants in as early as 48 hours. Get started now.
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Clarity is a recruitment agency specializing in the placement of designated Accountants and Finance professionals in the GTA and Vancouver. Our mission is to improve decision-making in hiring by investing in behavioural science and hiring technology. We specialize in Project & Interim Resourcing, Permanent Search and Executive Search and recruit Finance and Accounting Executives for growth companies. We are a tenured team of successful recruiters who have worked in the major industries across Toronto and Vancouver. info@findingclarity.ca.
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