The pandemic caused a severe economic crisis, leading to immense uncertainty. CFOs, CEOs, shareholders and investors have had to alter their financial plans in order to move to the next level of growth and recoup sales. In every business, there comes a time where changes are required. This is when we can welcome the interim CFO or, more precisely the model of a modern-day CFO.
Finding the perfect CFO
A CFO is without doubt among the top important assets for a business because they are the experts in finance who manage the key elements. If you own a new or pre-revenue firm employing a full-time CFO is costly and ineffective since the company is in the early stages of expansion.
But, having some financial knowledge is advantageous since it helps direct your business in the proper direction. If you are a middle-sized company, you probably already have an accountant on the payroll. What do you do in the event that your CFO suddenly quits? If your business is experiencing an economic crisis and your CFO currently isn’t equipped with the required capabilities?
In any event your business will need an interim CFO. Learn the distinction between an interim and a fractional CFO.
Fractional CFOs offer the financial services required by a business but they do so on a part-time basis. This means they are able to also provide the same services to different businesses simultaneously. Interim CFOs are experts in financial matters who serve in the position of an actual CFO. They typically tackle a specific task by using their knowledge, and then depart when their task is completed. Interim CFOs can also be hired to help companies in an economic crisis.
Where can I go from here?
Many companies believe they must employ a London interim CFO, but they actually require an fractional CFO (or vice versa). Some companies might not need a CFO but require an accountant or lawyer to review financial agreements. Based on your company’s requirements, either option could be favorable.
But, post-COVID-19 has resulted in a lot of confusion and hiring a seasoned CFO who can take bold decisions can reduce the risk and can increase the potential. If your business is experiencing financial crisis or is going through a change, I would suggest hiring the services of an interim CFO. Also, you can consider you can hire a full-time CFO under an agreement for a short-term contract.
What are the steps to become a competent CFO?
Preparation – Because the interim CFO is working for a brief duration, and the initial 30-40 days are essential to develop a long-term strategy that is beneficial to the business. There is no time to settle. The best way that to prepare a CFO is to establish close relationships with the finance department and establishing a clearly defined strategy for the project, and establishing a realistic timeframe.
Strategy – I have more than twenty years experience working in finance at a corporate level and my current position as CFO for Seajet Systems has shown me how a good CFO needs to be able address questions such as ‘How do we tackle the next outbreak?’ and ‘How can we market our product using the right plan of action is vital.
Diversification post-COVID-19 has required businesses to be more flexible. The epidemic has changed the CFOs job description far beyond the traditional responsibility for risk management and everything financial. The CFO needs to be prepared to offer an impartial perspective and build new workforces of the next generation. Today, businesses are seeking CFOs who can do more than manage money.
Technology-savvy – The main focus in the 21st century will be on technological innovation and. I am of the opinion that technology plays as significant an impact on financial capability as it does on. According to my experience, the best CFO should make use of cloud-based technology since it can help in the growth process and cut down on cost of overhead for businesses. Through a combination of finance and technology CFOs can leverage technology to maximize their contribution for the business.
Finally…
The modern CFO has to collaborate with other executives in the C-level to maximize the value of their organization. I am sure that there will see a more mixing of roles. This is the reason why there is a need to the role of interim CFO. Being able to demonstrate the required skills and the ability to change and be flexible is what businesses in the 21st century need to be successful in today’s climate.
A final point I’d like to share is the major advantages of having the interim chief financial officer is it can provide your business with a fresh viewpoint. The interim CFO will be in a position to draw on their past experiences to revamp your company’s budget and direct toward growth. Take advantage of this.
