Why people call us in, what a CFO can do
Nearly every smaller company has someone who handles their day-to-day bookkeeping and accounting as well as a CPA to do their taxes. However, as they grow, require financing, need to put new processes in place, or encounter other new challenges they find they can benefit from financial expertise but don’t require a full-time person. This is where we come in.
The most common thing we hear when people call us is that clients simply need more than their current bookkeeper, accountant, or controller can provide them. This could be reporting, forecasting, investor reporting, processes, and more depending on the company. They also realize that as much as they rely on their CPA for tax work, the CPA is essentially an advisor and outsider. By contrast, a part-time CFO is focused on operations and becomes part of your management team, just on a part-time yet long-term basis.
What does a Part-time CFO do?
This need can come up in any part of a company’s life cycle. For example, projects we’ve worked on include:
- Helping start-ups raise money. We’ve assisted companies including JDCPhosphate, 4G Clinical, Viveca Software, and Worklete raise over $100M combined venture funding. Then we’ve worked with them on processes, reporting, and human resources as they staffed up and expanded operations.
- Working with growing companies who are becoming more complex and need processes, forecasting, and reporting to support that growth. Latitude Beverage which grew from $3M in sales to over $40M is one example of a fast growing firm we worked with. Automatic Laundry is another.
- Executing turnaround strategies for mature companies facing financial difficulties. One example is Charles Webb, Inc. a furniture maker that had lost money for several years before we identified a strategy that returned it to profitability and ultimately a successful merger.
- Assisting with either the sale of a business or due diligence and integration of an acquisition.
The time commitment commonly ranges from 1-2 days per month to 1-2 days per week. Thanks to technology, most work can be done remotely which allows us to work both with clients outside our home cities but to be available 5 days a week as needed. Then when the time comes that clients grow into a need for a full-time CFO, we’ll ensure a smooth transition including helping to hire that person.
Typical Duties and how to Get Started
A part-time CFO can work in many areas, all depending on client needs and existing staff. Typical are:
- Oversight of all accounting including ensuring that reporting is timely and meaningful, that processes are followed, and that account reconciliations are done.
- Forecasting and budgeting. A financial forecast provides a dashboard for defining and communicating expectations, operating the company, and projecting cash needs.
- Assist with financing including venture funding and bank lines
- Creating meaningful reports and metrics
- Reporting to top management and investors
- Implementing new accounting systems and programs
- Assisting with Human Resources including compensation plans and policies
A great starting point for a part-time CFO is creating, updating, or maintaining the financial forecast. Not only is the forecast an essential document it is a great way for an incoming CFO to come up to speed and to provide an important deliverable to kick off the relationship.
Conclusion
Perron & Low has been working as part-time CFOs for more than 25 years because we believe we are a great fit for smaller and emerging companies that can benefit from financial expertise without the cost and lengthy recruiting process that a full-time CFO requires. If you think a part-time CFO could be a fit for your company, please contact us at info@perronlow.com.