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What is a “CFO for Hire” and Why Might You Need One?
Most companies need the services of a Chief Financial Officer (CFO) but smaller companies may not be able to afford one. A good CFO will expect a salary of at least $100,000 plus benefits. While this investment is usually justified for businesses with annual sales greater than approximately $20 Million, for businesses smaller than this it may make more sense to hire a part time CFO or a “CFO for Hire”.
A “CFO for Hire” performs the same services for smaller companies that a full-time CFO does for larger companies. A CFO is an expert not only in financial matters but also in the strategic management of a company. He is able to work with banks to arrange appropriate financing and obtain the best possible terms for that financing. He will work with insurance companies to manage the risks of doing business; and maximize value to the firm to its shareholders.
A CFO will also provide direction with regard to cost managment, increasing operational efficiency by proposing new equipment and processes and many other business decisions. He or she will also bring many other contacts and resources such as relationships with banks, insurance companies, attorneys and other professional resources which may be of use to your business.
A CFO will be responsible for managing accounting systems and supervising a bookkeeping staff, preparing annual operating budgets, periodic financial reports, establishing cost accounting systems, and establishing management and financial controls.
A “CFO for Hire” will provide these same benefits but for lower cost and does not require the commitment required to hire an employee. Typically, since the “CFO for Hire” works with smaller companies, he or she will be an expert in the financial issues unique to emerging businesses.
Engaging a “CFO for Hire” is like any other professional service. The “CFO for Hire” works as an independent contractor, much as your attorney or CPA does. He or she will work under the provisions of a contract or letter of agreement. For additional information on the “CFO for Hire” services of Strategic Business Services, please contact Mark Fackrell at (208) 908-1450 or visit our web site.
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