The CFO'S Perspective

When a key employee leaves, hiring a replacement is of paramount importance. But when it is going to take considerable time to find the right person to fill the vacant role or a hired replacement cannot start right away, an interim hire is used to bridge the gap.

So, who do you turn to when you need help with interim employment?

Hiring managers may ask, “Does it matter who we bring in to help us hire an interim position, anyways?” and “Do we need to spend much money to hire someone that we only plan on keeping around for a short time?” The ubiquity of staffing companies makes them an attractive choice for inexpensive hires in individual contributor roles. But what about interim executive leadership roles?

A role like the CFO position needs to be filled with an experienced professional who is ready to lead the organization. As CFO Magazine explains,

“Leadership voids are particularly perilous when it comes to the CFO position. CFOs are the ultimate utility players in an organization — they’re captains of detail orientation. They need to seamlessly interact with all parts of the company to gather and disseminate information. At the same time, they need to be a strategic thought partner with the CEO. Having this seat empty can cause the best of companies to stall. Interim CFOs keep a company in a safe pair of hands. They provide stability by offering critical financial reporting and business intelligence and moving key projects forward. Interim CFOs enable proactive companies to keep the momentum going. They also, maybe most importantly, allow them to take their time to find the right next full-time finance chief (vs. rushing to hire whoever is available at a moment’s notice).”

The importance of the CFO role begs the question, do professional services firms provide an advantage for these types of hires? What sets them apart from staffing agencies? And do these advantages justify their premium pricing?

A business owner should always have a succession plan, yet at the same time be ready when a member of their executive team is ready to implement their own exit strategy, i.e., retirement. The Great Recession caused many people to need to work longer until retiring because of the loss of income and value of retirement assets. But now, a decade has passed, which has given some the time to replenish their retirement savings. As a result of the COVID19 pandemic many people are re-evaluating what is important to them, and in many instances, it means retiring a few years sooner than originally planned.

Regardless of what precipitates a recession, economic ebbs and flows are to be expected over time. Recessions can be caused by a period of contraction that inevitably comes after economic expansion or a sudden and unexpected economic shock.

While the coronavirus recession is fresh on our minds, it is not the first nor will it be the last recession that today’s businesses face. Knowing how to weather a recession is an essential management skill regardless of how long it lasts. However, facing a prolonged recession poses unique challenges that can test even the most adept leaders.

Our team of experienced CFOs shares their top tips on getting through a recession and coming out stronger on the other side:

When your business gets to the point where it needs to hire a CFO, what are your options?

• Full-time In-house
• Interim Outsourced, virtual or in-house
• Fractional Outsourced, virtual or in-house

These days a lot of organizations are looking to hire virtually, which makes “hiring a virtual CFO” a hot topic. Amidst all the remote work buzz it is easy to lose your focus and forget what you were trying to accomplish in the first place by outsourcing the role.

Like any other c-suite hiring process, hiring a CFO can be a daunting process at any organization. Whether the role is a newly opened position at a burgeoning startup, or a replacement for a long-standing CFO that is looking to retire, bringing in a CFO is a complex endeavor.

For companies that are accustomed to using recruiting services, the idea of using an executive placement agency to hire a key leadership role is a logical extension. However, businesses that typically handle hiring in-house may not see the benefit to using an executive search firm to hire a CFO. Some business owners may not even know that there are niche executive search agencies that specialize in finance roles.

However, using an executive search firm that focuses specifically on hiring key finance positions offers numerous benefits, which typically include:

A vital part of a business’s success is the strength of its management team.  This is always true, in good times, and during a crisis.  A successful business needs all oars of the boat pulling together at the same time.  And the boat needs to be headed in the right direction.

The current economic crisis is highlighting the importance of strong financial leadership.  That is undoubtedly true, given the flurry of new government aid programs and the impact of stay at home orders.  But a business owner always needs strong financial leadership.  In a healthy economy, the owner needs to make sure they are operating at maximum efficiency to take advantage of likely higher gross margin opportunities, or to make sure an investment in a new product or service has long term value.

This article points out a few areas to consider in determining if you currently have the “right CFO” and a pointer on “buyer beware” if you are considering making a change in CFO during a time of high unemployment.

In uncertain times businesses need continued access to experienced bookkeepers and accountants to keep cash flowing. Whether the need is part-time, interim, or project-based, a third-party financial professional can offer the information needed to make strategic business decisions. This need does not change when people are working remotely. In fact, with so many businesses temporarily pausing operations, the need for bookkeepers and accountants is likely greater than ever before.

While the future may be uncertain, there is one immutable certainty – businesses still have access to the reputable, qualified bookkeepers and accountants that they need to keep their organizations afloat. These kinds of key personnel aren’t going anywhere and are available to help businesses navigate today’s unique challenges.

This is an uncertain time for business owners.

Difficult questions like deciding whether to pause operations, continue a lease, apply for a loan, or lay off employees, are on the minds of business owners across the country. Many are confused about their tax obligations in the face of new legislation. Most are worried about maintaining proper security and managing communications effectively with a larger percentage of their employees working remotely. Some are concerned about how they will repair the brand damage that is occurring as a result of not being able to fulfill their brand promise to their customers.

Frequently shifting state and local regulations have left the waters murky for many businesses, especially in highly seasonal industries. Some business owners may be wrestling with the question of whether their businesses will be able to reopen at all after the shelter in place orders and social distancing recommendations have been lifted.