In my last blog, I outlined the different signs that would prompt a business owner to consider hiring a CFO. But just like the right time is different for everyone, there’s also no “one size fits all” CFO for your business.
Part-time CFO. Fractional CFO. Interim CFO. There are various types of chief financial officers, and the distinctions between them can be confusing.
Let me explain what each of these financial experts does and how to determine which best fits your needs.
A part-time CFO provides affordable financial leadership and expertise but does so on an hourly, part-time, or as-needed basis.
A part-time CFO is ideal for you if:
- you run a small business, a start-up, or a non-profit with revenue under $10 million.
- you need expert advice to ensure you’re making sound financial decisions.
- you need someone to oversee your financial team but can’t afford the cost of a full-time CFO.
- you’re spending more time doing administrative or financial work than growing your business.
A fractional CFO is very similar to a part-time CFO, offering part-time assistance on a long-term basis.
A fractional CFO is ideal for you if:
- your business is growing, and you need more than a bookkeeper.
- you need someone who can set up a proper accounting system and provide insight into your financial performance.
- you need someone to help you strategically reinvest your profits and maximize your returns.
- you’re looking for someone to help you find investors.
An interim CFO is a financial expert that comes in for a short period, usually less than six months, to help a company through a transitional phase or crisis. Interim CFOs typically work with larger corporations as opposed to small businesses or start-ups.
An interim CFO is ideal for you if:
- your full-time CFO has recently left the company, and you need someone in-house while you find a permanent replacement.
- your company is going through a financial crisis, an operations change, or is preparing for a merger or an acquisition.
So, now that you know the differences, have you determined which CFO best suits your needs? Whether it’s part-time, fractional, or interim, Miami CFO can provide executive-level financial management skills sure to make a difference for your organization. Are you interested in learning more about our outsourced CFO services? Use this link to schedule a meeting: https://calendly.com/miami-cfo.