A part-time CFO performs the duties of the chief financial officer but isn’t a full-time employee of the organization. Small biotechs can benefit from the assistance of a part-time CFO with recording and analyzing financial data, completing and submitting annual tax filings, negotiating contracts, and other tasks. Additionally, a part-time CFO can offer crucial assistance during periods of expansion or crisis.
David Johnston of dbj consulting llc, offers three reasons, hiring a part-time CFO for your biotech startup may be the best business decision you ever made.
Saves on the Budget
It is less expensive to hire a part-time CFO than a full-time one, explains David Johnston. It is ideal for engaging a part-time CFO for small businesses that do not yet have sophisticated financial requirements. CFOs are not required to work five days a week for eight hours each day. Some CFOs are so proficient that they just need to work one day a week.
Additionally, part-time CFOs can deliver services on par with those of full-time CFOs, enabling businesses to expand financially without spending excessive amounts of money on hiring a qualified finance officer. And there are typically no contracts binding a business to a part-time CFO. Part-time CFOs do better as a result of this.
More Time Efficient
Since the part-time CFO is only needed for a brief time to provide CFO services, (s)he works hard to achieve the company’s financial objectives within that time. David Johnston says the goals are met sooner as a result. It is not just only time or money effective, but it is also both. Faster growth is accomplished because businesses have more time to concentrate on other areas. Since the part-time CFO is only needed for a brief time to provide CFO services, (s)he works hard to achieve the company’s financial objectives within that time. The goals are met sooner as a result. It is not only time and money effective, but it is also both. Faster growth is accomplished because businesses have more time to concentrate on other areas.
Enhances Staff Effectiveness
The entire finance department team benefits from hiring CFOs on a part-time basis. Providing workers with up-to-date knowledge of financial management is a component of the CFO’s services. Learning becomes ongoing because they have a fresh CFO to mentor them. Their financial management expertise is continuously updated, according to former CFO David Johnston.
Taking part in the company’s development strategy is also the duty of any CFO. If the organization continually appoints new CFOs, new plans and methods are created. It is perfect for business owners who want to use innovative administrative and operational techniques to hire a part-time CFO.