Most business owners & incorporations have the vision and insight to run their businesses, but when it comes to dealing with their financials, taxation and compliances they generally lack the expertise or the know-how to manage them. This could lead businesses into problems. Further, as they grow, businesses frequently face scenarios where they are in a dilemma while making certain important choices which could make or break their foundation for the future.

This is where the help of a Chief Financial Officer (CFO) is required who could provide you with strategic financial insights and guidance as well as manage the finances.

But then again, it all drills down to the point, can an incorporation who is just starting or expanding their business in a new location or country afford a full time CFO from the start.

What does Part-Time CFO mean?

Part-time CFO or an online CFO deliver the same duties and provide expert advice as a traditional full time CFO but offer services remotely and on part time basis.

It helps incorporations that are starting or small business, get access to CFO services that they otherwise wouldn’t have been able to afford. With part-time CFO services, businesses can gain access to expert financial professionals at a fraction of the fee of a full time CFO.  

Should one look for a full time CFO or a Part-Time CFO?

An incorporation would benefit greatly by appointing a full time CFO or in-house CFO, as they would help manage the financial actions of a business. However, a full time CFO could be quite expensive and most of the time not affordable for businesses which are at the setting up stages or small businesses. A full time CFO needs to be paid as a full-time salaried employee along with all the bonuses and perks, whereas a part-time CFO services would be quite affordable and allows a business to control their costs by paying only for the services that they need or choose.

Of course, in the long run, a good part-time CFO could support in growing your business so that it can be later on taken over by a full time CFO.

What are the advantages of appointing a Part-Time CFO?

Availing services of a part-time CFO can provide great benefits to your businesses. Some of the major benefits associated with hiring a part-time CFO are –

• Getting a knowledgeable CFO on a part time basis.
• Much affordable compared to hiring a full time CFO.
• Help businesses outsource their non-core basic activities like accounting & bookkeeping, bank reconciliations, Accounts Receivable and Payable, payroll, audit, sales tax, income tax and compliances thereby reducing their overall costs.
• Avail advisory services.
• Preparation of various financial reports.
• Preparation of statutory accounts.
• Financial Audits.
• Tax Planning.
• Providing guidance on issues and problems faced on regulatory and financial front.
• Help in selecting the right accounting and tax software which best fits your need.
• Help raise capital in a way which is most appropriate for the company’s stage and growth.
• Guidance on cash management on regular business operations.
• Digital and paperless work environment.

Client gets to pick and choose the services he wants and does not need to go for the complete bundle of services. He would be charged only for the services he chooses.

To sum it all, with clearly defined deliverables, a part-time CFO helps you get more time to focus on what is important to you that is your business.

How are the Part-Time CFO services priced?

The part-time CFO services are charged differently by different service providers. The common models for pricing include Hourly billing, Value bases billing and fixed price billing.

• The fixed price billing method is based on the fixed services provided on an ongoing basis which have been clearly defined as part of the part-time CFO services. The fees are collected upfront or in advance.
• The hourly billing method is a traditional method where the client is charged for the part-time CFO services on hourly basis. The scope here is loosely defined and primarily depends on the client’s requirement. The fees are generally collected in arrears.
• The Value based billing method is based on value of services that are being provided to the client. The fees are collected upfront or in advance.

How does technology play a role?

Cloud technology has opened access to beneficial opportunities for incorporations / businesses managed from remote locations outside USA. Now clients can easily employ part-time CFO’s who can manage the financial aspects of their business virtually and also gain easy access to trusted advisors helping them make smart and timely busines decisions. Clients can get real time update anywhere using the current technology and communication tools. With screen sharing and video conferencing facilities, providing services to clients is much more accessible than ever before.

Related services that we offer:

• Year-round accounting & bookkeeping
• Year-round payroll
• Accounts Receivable and Payable
• Cash Management
• Board Reporting & Presentations
• Compliance & Returns
• Sales Tax
• Income Tax
• Audits including Financial Audits and Regulatory Audits
• Tax Planning
• Budgeting and Forecasting
• Preparation of various financial reports
• Advisory services

Do you plan to hire a Part-Time CFO for your organization? Connect with our team today by filling the below form or you call us on (+1) 718-426-4661 or email us at baggarwal@aggarwalcpa.com