A CFO can be a game-changer for a blossoming company’s prospects, yet it remains true that most organizations that could benefit from bringing one on board wait a little too long to do so.
In some cases, this is because they’re simply unaware of just how much of a positive impact a CFO can have, such as how they can save time, reduce stress, improve cash flow, and ultimately make the business more profitable.
But often, it’s because there are budget constraints that make it difficult/unappealing/impossible to hire a CFO anyway. The good news is that you don’t need to hire a full-time CFO to get the benefits of working with one. Remote CFOs, who work on a part-time basis, offer affordability and flexibility, allowing SMBs the chance to unlock financial expertise without worrying about how they’ll pay for a full-time CFO.
That’s the good news about remote CFOs, but it’s also important to keep in mind that those benefits won’t automatically come an organization’s way. To get the most value, it’s vital to work with the right remote CFO. So, what does that look like? We’ve put together a short list of some all-important characteristics to look for when making your decision.
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Experience
A talented up-and-coming remote CFO might deliver good work for your business, but they’ll also be somewhat learning on the job. In this field, experience counts for a lot. If a remote CFO can point to a quarter-century of experience, then that means that they’ll have navigated economic upswings and downswings, and worked with a wide range of clients, and that can make all the difference.
Their Results
A great remote CFO will be results-driven, which means they should have a list of their victories that they can use as evidence to demonstrate their capabilities. After all, one of the primary advantages of working with a remote CFO is that they can help you to get results that you wouldn’t be able to get on your own. If they can point to the successes they’ve experienced with their past clients, then that shows that they understand that it’s a results-focused business to be in — and that they’ll fight to get the same results for you.
Who You’ll Be Working With
Many businesses get caught off guard when hiring a remote CFO. While they initially thought they would be working with a CFO, what they actually end up getting is a junior bookkeeper.
That’s not what you’re looking for, and the best firms know. When hiring a remote CFO, check who you’ll actually be working with. If their website says that you’ll receive senior attention and be working with a CFO/controller, then you’ll know that your all-important financials will be in safe hands. On the other hand, if they can’t or won’t provide that reassurance, then it’ll be best to continue your search.
Ensure Financial Management is Customized
A great remote CFO will work to provide financial management that makes sense for your business, not anyone else’s. They’ll offer personalized, customized financial management that is in line with your goals and KPIs. In effect, you should feel that the remote CFO is a part of your business, even if that’s only the case on a short-term basis.
Make Sure They’re On-Shore
It’s normally possible to outsource some tasks to offshore companies, but when it comes to hiring a remote CFO, it’s generally best to hire on-shore unless they can demonstrate experience and expertise related to your specific geographical region. Aside from increasing the chances that they’ll have the level of regulatory understanding required to do their job well, ensuring that they’re US-based (if a US company) also streamlines other aspects of working with them, such as making it easier to hold meetings at a time that’s convenient for everyone.
Ask About Their Onboarding Process
How a remote CFO handles the onboarding process can be a big clue as to what they’ll be like to work with. If they make it as easy as possible, and you have confidence that you’re in safe hands from the get-go, then that’s a good sign that they’ll be a valuable asset to your company. If they’re an experienced team, then they’ll know exactly what’s required to get up and running, as well as clearly communicate the key information you need, such as having a defined sprint and outlining when you should see your first deliverable. In other words: they should make the journey as easy as possible from the very first minute.
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