Deciding to grow your leadership team isn’t always easy. CFOs have quickly become nicknamed the ‘chief future officer’ of their companies, taking on an evolving role beyond number crunching and spreadsheets. The coming recession and financial challenges mean a CFO is more vital than ever for a company’s success.
How can SMEs afford to hire top CFOs? It’s easy to assume that CFOs only exist in FTSE 100 companies or that they only operate on a full-time basis. Today’s CFOs operate on a part-time and remote basis, making them more accessible than ever for SMEs and scaling businesses.
The evolving CFO role means they often are hired for a specific purpose, from managing cash flow to restructuring the company’s finances and recession planning.
Companies no longer have to wait until they can afford a full-time CFO position to gain access to their skills. FD Capital is a specialist recruitment agency that specializes in CFO recruiting, experiencing a rise in demand for part-time and remote CFO positions.
Working with a recruitment agency means SMEs can gain access to top CFOs and their skills in a way that makes financial sense for them.
Every company – regardless of its size and industry – can benefit from having a CFO on board. They offer unbiased strategy-driven insights into everything from the company’s supply chain to operations and cash flow. CFOs carry out internal audits into the inner workings of their companies, implementing changes and integrating new systems.
The responsibility and workings of a CFO are changing rapidly. They’re taking on an increasingly operational role while working on a more flexible basis than before. Hiring a CFO on a part-time basis through a recruitment agency gives you access to experienced financial professionals.
CFOs are game-changers within SMEs. They will make an immediate difference to the operations and financial systems within an organization. While CFOs can be brought in to oversee a specific project, their general responsibilities will include fundraising, cash flow management, and stakeholder engagement.
SMEs planning to engage with fundraisers will benefit the most from having a CFO on board. PE houses and investors are more likely to support companies with a CFO on their leadership team as they offer an unbiased perspective on the company’s financial situation.
CFOs add transparency to financial processes and translate their financial data and insights into more accessible language. Stakeholders and investors rely on a CFO to provide them with an accurate forecast of the company’s position and future strategy.
SMEs commonly gain access or hire a part-time top CFO when they’re preparing to undergo a growth strategy as their financial insights are vital to realizing the company’s growth potential. A CFO will put financial systems in place to enable sustainable growth, including ensuring cash flow liquidity and supply chain resilience.
Hiring a part-time CFO doesn’t mean that these processes have to be drawn out. A fractional CFO will usually work to a quicker schedule than their full-time counterpart.
You can also hire a CFO to oversee a transition period within your company, including for mergers and acquisitions. They’ll ensure the company is financially and operationally ready for the change.
SMEs also hire CFOs when they identify a skills gap within their organization. Many CFOs operate on a fractional basis, specializing within one industry and working with several clients. Other CFOs tailor their CV around specific skills, such as managing mergers and overseeing fundraising strategies. CEOs of SME companies without financing experience will benefit from having a CFO as their second-in-command.
Recruiting for a CFO isn’t a process you want to rush. Most CEOs choose to be actively involved in the recruitment process as they want a candidate who will fit into the company’s culture and understand its mission, particularly in an SME.
The best way to hire a part-time CFO is by working with a recruitment agency. They’ll streamline the process by advertising the role, shortlisting applicants, and screening potential candidates. Working with a specialist recruitment agency like FD Capital will give you access to top CFOs who work on a part-time and remote basis.
SMEs should focus on employee retention and finding the most suitable candidate in the first round. Working with a recruitment agency is an investment that every SME should make when recruiting a c-suite executive.
Why would an SME choose to hire a part-time CFO instead of a full-time position? While most companies would choose a full-time CFO, it’s often not financially reliable for companies with a smaller turnover. Choosing to hire a fractional CFO vs. a full-time CFO brings with it a variety of benefits for SMEs.
A part-time CFO is a more cost-effective option. Your company gets access to the skills, experience, and network of a CFO without paying the cost of a full-time salary. Your company can choose to upgrade the position when its turnover increases or if there’s a larger volume of work.
The experience that a CFO brings to an SME is invaluable. They’ll have experience working with companies of every size. Thus, have experience dealing with problems as varied as stakeholder relations to supply chain problems. Working with a recruitment agency allows you to curate your search for a candidate who can fill the skills gap at your SME.
Building a leadership team isn’t easy, especially if personalities clash. Hiring your CFO on a part-time basis gives you the flexibility to trial the candidate and position.
Another option SMEs can avail of to gain access to top talent is via remote CFOs, who often operate on a part-time basis. Hiring a remote CFO helps to lower your overhead. It also provides you with a greater talent pool of candidates to choose from. However, you’ll get all the benefits of a highly skilled CFO without investing in an office.
Most part-time CFOs work alongside several clients and have developed their experience in other roles. You can hire a remote CFO by working with a recruitment agency to determine your company’s specific needs.
It’s never been easier for SMEs to access top CFOs and utilize their skills to develop the company’s growth strategy. Hiring a part-time or remote CFO will prepare your company for the upcoming recession and fill your skills gap.