The Chief Financial Officer (“CFO”) plays a vital role in the growth and success of a company. The purpose of this blog post is to discuss the fundamental responsibilities of a CFO, as well as the benefits of outsourcing this role on a part-time basis.
The core responsibilities of a CFO include the following major components:
Operations – The CFO is responsible for operating the company’s finance function both effectively and efficiently. This includes overseeing financial reporting, tax compliance, financial planning and analysis, and treasury, among other areas.
Governance and Risk Management - The CFO ensures the ongoing compliance with financial regulations, safeguards the assets of the company by establishing and monitoring internal controls, ensures the integrity of the company’s management information systems, and communicates high risk matters and financial information to the board of directors.
Strategy – The CFO is integral to creating and implementing a company’s strategic plan. With their financial expertise and leadership, the CFO aims to align the finance strategy with the business strategy. The CFO develops debt and equity financing strategies, identifies tax planning strategies and establishes performance measures that support the company’s strategic direction.
Numerous companies decide to outsource the CFO role on a part-time basis for a variety of reasons. The following represent some of the benefits to outsourcing the CFO role:
Cost Reduction – The company can benefit from the experience and expertise of a CFO at substantial cost saving compared to hiring a full-time CFO. Part-time CFOs may also be hired on a fixed budget to complete a specific task or project.
Efficiency – Part-time CFOs can effectively utilize the existing accounting and support staff of a company to ensure the CFO’s time represents the best return for the client.
High Quality of Service and Deadline Driven – Since the engagement can be ended by the client with ease at any time, part-time CFOs are required to demonstrate their value on an on-going basis by consistently providing high quality services in accordance with the company’s deadlines.
Flexibility – A company can hire a part-time CFO for a specific function, project or period of time. Also, as mentioned above, the company has the flexibility to end the engagement with ease at any time.
CHY offers flexible arrangements for companies outsourcing their CFO function on a part-time basis. Whether your company requires a CFO one day per week or one day per month, CHY will strive to accommodate your needs. If you are interested in learning more, visit our website and contact CHY today.