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Aug 24

Interim Cfo – Your Financial Manager And Strategist

It really doesn’t matter if you are Bill Gates, playing with stacks of his own money or the Bill nobody of the corner shop selling magazines and snacks, having very little money to play with. If you don’t know how to manage your cash, you lose all your stacks and snacks. Recession has hit businesses hard and if you are still in business, it is good news.

Today’s uncertain socio-economy climate with rising interest rates are pushing many small and medium size units out of business, because bigger units have the advantage of size, are better managed and have enough resources to build new marketing strategies and ideas.

One of the primary reasons for many businesses not lasting longer than 6 years is amateur or bad cash management. Some might even not know what went wrong or how their business failed. There are many companies who are in similar stages of indecision and are directionless about where to go, or whether even to stay in business. This is the second best stage to seek professional help to pull your company out of the mess, though it should have been done when you noticed the first signs of ailment.

Do not prolong your decision to seek profession help in solving your mismanagement or even better, hire an interim CFO (Charted Financial Officer). Employing an interim CFO would help to take a close look into all financial and accounting practices of the company and help device means to cut down on all unwanted overheads and expenditure, and create methods to increase cash flow and improve profits.

Smaller companies who need the expertise of a CFO but don’t have the funds to have a dedicated CFO, can think of hiring an interim CFO who will help you fix all the loop holes and prevent the leakage of hard earned profits by bringing down excess expenditures. The benefit of hiring an interim CFO by the smaller businesses temporarily could in fact turn them running into profitable units. An interim CFO will have enough expertise to reduce the cost of operation. It is also the CFO’s responsibility to ensure that the proper, timely and periodic decisions are made to streamline the cash flow and to simplify operations, so that no money is spent on something that isn’t absolutely necessary.

If the CFO’s role is to put a company finances on line and perspective with its vision, the interim CFO’s or a part-time CFO’s role is no less significant. The same philosophy and ethics apply whether the CFO’s role is required on a permanent basis or if they have to play the interim CFO. The duties, tasks and the expected financial end results from such a contracted CFO remain the same. Mid size companies toying with the idea of finding a permanent financial expert and manager can in the mean time try out an interim CFO with good credentials, which can bring about the expected changes and good financial returns.

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