Benefits of Using Contract CFO Services

The times they are a-changin, according to Bob Dylan. He is not a CPA but was definitely on to something with these lyrics.

Has your company thought about hiring a contract CFO (Chief Financial Officer) versus hiring a traditional, in-house CFO? On Bob Dylan’s behalf, let’s consider a few of the reasons why you might want to consider contract CFO services because the times are a-changing.

1. An outside professional’s perspective – Typically a contract CFO will have a diverse background with various industries. This can provide the opportunity to compare your company to other similar companies of your size. With a diverse background, the contract CFO may have encountered certain issues you have while offering the expertise to know how to fix them. It’s also typically a non-biased opinion on a matter since this CFO is operating outside the company.
2. Cost savings – The cost-effectiveness of engaging contract CFO services for your company depends on the specific role and duration needed. By hiring a contract CFO on an hourly or monthly rate, you have the flexibility to tailor services to your requirements, potentially saving money compared to bringing on a full-time traditional CFO with a higher total compensation that includes benefits and incentives. In addition, the contract CFO arrangement can grow with you as your needs become more strategic and complex.
3. Other experience – In addition to accounting services, a contract CFO may have the experience to help make decisions for your company such as compensation plans, financing vehicles or strategic mergers or acquisitions. Working in different industries, the contract CFO may have relationships and resources for disposing of a subsidiary — whether it is discontinuing the subsidiary or selling the subsidiary. The contract CFO can also advise on expanding services, cash flow growth, selection of software, and many other areas to continue your success.

As the times change, so does the need for a full-time CFO. If your company is in need of a CFO, consider the advantages listed above to help in your decision with hiring a full-time CFO or a fractional, contract CFO. Please remember to evaluate what your company needs in a CFO and do some research on the outsourcing arrangement that might be the best fit for you.

At Mahoney we offer various small business accounting services for our clients. For additional considerations, please reach out to T.J. Sheldon, Associate Director of the Assurance Solutions Team at Mahoney.

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