HR CONNECTION

How the Benefits of a Part-Time Chief Financial Officer Add Up

Craig Moffatt, CPA, MBA, and MT, leads McGill, Power & Bell’s Part-Time Chief Financial Officer (CFO) services for the firm. He was a tax partner at BKD before leaving to take a CFO position at a large nonprofit health-care organization.

Do you run a small or growing company? A nonprofit organization? Or maybe it is just that you do not have the funds or revenue to support a full-time chief financial officer (CFO). In addition, you may have key players who know the business inside and out such as the owner, CEO or executive director, but they often do not have the time nor the experience needed to manage a fiscal department and the related fiscal duties. If these scenarios sound familiar, hiring a part-time CFO could be a solution to gain the benefits of an experienced financial executive at a fraction of the costs of a full-time CFO.

Why Your Business or Organization Needs a Part-Time CFO

There may be multiple reasons why your business or organization needs to consider a part-time CFO. For instance, funds may not be available for a full-time CFO, you are looking to replace someone who has left or taken an extended leave of absence, you need someone to oversee a special project or assist with a complex fiscal issue, or to bridge the gap when financial expertise is needed. Driven by the engagement which can last weeks, months or longer, a part-time CFO can step in and perform the following activities, on an hourly basis, either onsite or remotely at a reduced cost compared to hiring a full-time CFO. • Oversee forward-looking financial initiatives • Participate in and provide guidance on current and long-range strategic planning activities • Plan and prepare for major accounting changes • Implement tax saving strategies • Provide guidance and oversight on operating budgets to project financial goals • Provide guidance and oversight on capital budgets and assist in capital acquisitions • Provide guidance and oversight to forecast and manage cash flows • Review and design internal controls and related segregation of duties • Monitor and review internal financials to improve quality, timeliness and accuracy Assist in compliance requirements — audits, taxes, etc. Assist in bank financing and negotiations with bankers Assist in developing the fiscal department procedures and related training

What Key Skills Does a Business or Organization Need from a CFO?

A business or organization needs a CFO who has many vital skills to assist the owner, CEO or executive director in executing their strategy and maximizing the opportunities for success. A good CFO has the following skills. • A good understanding of GAAP and GAAP financials, including gathering and interpreting the company’s financials • A good working knowledge of the Tax Code and the ability to implement taxsaving opportunities • The ability to produce and analyze cash flow reports, including cash flow projections • The ability to financial plan and budget for operations, including actual to budget reporting and developing a long-range forecast, which is the financial blueprint for the business • The ability to develop a strategic relationship with the owner, CEO or executive director in order to obtain a deep understanding of each business’s unique financial goals • Strong management and leadership skills to guide the fiscal team

Benefits of Part-Time CFO Services Coming from a CPA Firm

There are tremendous benefits of hiring a part-time CFO who is a member of a regional accounting firm. Most importantly, the parttime CFO has access to a variety of technical resources, individuals who are experts in different fields, and individuals who are experts in a wide spectrum of businesses. This access will allow the part-time CFO to better serve any business or organization due to the breadth of the firm’s personnel and their expertise. For more information, contact Craig C. Moffatt, director of Consulting Services at McGill, Power, Bell & Associates, LLP at info@mpbcpa.com or visit www.mpbcpa.com.