Home Business Insights & Advice Why London businesses are finding part-time CFOs to be perfect

Why London businesses are finding part-time CFOs to be perfect

by John Saunders
18th May 22 5:18 pm

London has long been considered one of the world’s capitals for financial investment. It’s a city full of start-ups, PLCs, and businesses on track to realise their potential. Not every London business is at the stage where they have a fully fledge leadership team or a 100-person office. In recent years, there has been a rising trend amongst successful London businesses – and it’s all about the team around them.

Part-time CFOs are becoming some of the most in-demand positions within the financial industry with professionals specialising in niches as varied as construction to e-commerce and healthcare. The benefits of hiring a part-time CFO meet the needs and considerations of most London businesses.

FD Capital is the leading boutique financial recruitment agency in London, specialising in connecting businesses with part-time CFOs. They’re sharing their insight into why London businesses are finding part-time CFOs to be their perfect fit.

Why you need a part-time CFO

When you start to expand your leadership team, a CFO is one of the first positions that you should hire for. They bring dozens of benefits to a business by implementing systems and processes that are designed to make the company more efficient and provide strategic insight.

While you may already have employees acting as part of a finance department, they’re unlikely to have the skills, knowledge, and expertise of a CFO. Hiring a part-time CFO will improve the financial awareness of your company by incorporating financial forecasting and strategy implementation into your decision-making process.

London businesses often hire a part-time CFO to bring a fresh perspective to their business. You may hire a part-time CFO at times of difficulty for your business to create new strategies, streamline your finances, and offer radical thinking to change the direction of your company.

Cash flow forecasting is what can make or break the success of London businesses. Your part-time CFO will develop a forecasting system based on your company’s previous and present financial performances to determine its standing within the industry and provide accurate cash flow forecasting.

A skilled CFO stays ahead of the curve, understanding the latest financial software and using technological tools to provide them with data-driven insights. A part-time CFO can oversee your financial department and put the best systems and cloud-based solutions in place.

The benefits of hiring a part-time CFO

Why should you hire a CFO on a part-time basis? Not every company wants – or can – commit to hiring a CFO on a full-time basis. There are several reasons why a part-time CFO could be the best fit for your London business.

1. Cost-saving alternative to a full-time CFO position

Hiring a full-time CFO can be expensive. You’ll be paying the full-time salary for a leadership position and may find yourself in a longer recruitment cycle to find the ideal candidate. Using a recruitment agency that specialises in hiring CFOs can streamline the process – whether you’re hiring on a part-time or full-time basis.

If you’re hiring a CFO for the first time, hiring on a part-time basis can help minimise the risks involved. If the candidate isn’t the right fit for your company, you’re paying a small cost. In the case that they’re the right candidate for your business, you can nurture their talent and explore the potential of expanding their role to a full-time position as your business grows.

Hiring the wrong CFO could quickly start to cost your business. Choosing to hire on a part-time basis instead can minimise this risk. The other benefit of hiring a part-time CFO is that you don’t have to worry about paying out for perks and benefits that are expected to come with a full-time position to help minimise your overheads.

2. Financial expertise

Many of the candidates you’ll find working on a part-time basis are financial experts who are at the stage in their career where they want the flexibility and freedom of working freelance. Outsourcing your CFO position means that you can benefit from financial expertise from professionals with experience within your industry without paying the premium of a full-time position.

You can take advantage of your part-time CFO’s financial expertise and experience throughout the industry, including their contacts. London businesses typically hire a part-time CFO with a specific purpose or function, such as fundraising. Specifying the purpose of your CFO can help you find a candidate who will bring the most value to your business.

3. Improves your business’ efficiency

Hiring a part-time CFO can also provide significant time saving for your business. Most CEOs find themselves taking on the responsibilities of a CFO and being unable to delegate to junior employees, finding themselves struggling to balance the demands of their position. Alternatively, you may have your existing employees carry out duties typically done by a CFO.

Hiring a part-time CFO can allow you to free up time for your CEO and other employees to focus on their day-to-day job and boost their efficiency.

When to hire a part-time CFO

One of the most common questions that London businesses have is when to hire a part-time CFO. Timing is everything in business. While there are dozens of reasons why you may have a part-time CFO, here are three signs that you need to hire a part-time CFO:

If you’re undergoing a period of rapid growth, a CFO can help your team to scale the business by providing a fresh perspective and strategic insight to encourage sustainable growth.

Hiring a part-time CFO can also be helpful when you’re developing a new product. You want to find a CFO with experience in your industry who can provide strategic insight for your marketing department and ensure that you achieve the best ROI and meet the KPIs for your new launch.

Another sign that you should hire a part-time CFO is when you want to improve your business’ profitability. One of the main roles of a CFO is to streamline the company’s finances and spot any potential unnecessary overspending to ensure the company can stay on track with its strategy.

Hiring a part-time CFO could be a game-changer for your London business. Start the recruitment process for a part-time CFO in London by contacting FD Capital today at www.fdcapital.co.uk or by calling at 020 3287 9501.

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