When interim CFO services are right for your business

Financial teams are facing a leadership challenge.

A significant number of accountants and auditors have left their jobs in recent years, with around 75% of CPAs set to retire in the next 15 years. And the number of bachelor’s degree completions in accounting continues to drop.

With a shortage of qualified professionals across industries, finding the right executive-level talent can be challenging for organizations. That’s why interim CFO services are a good fit for many businesses.

Why do businesses turn to interim CFO services?

An outsourced or interim CFO provides your organization the opportunity to bridge gaps in financial knowledge during executive vacancies or restructuring periods. Unlike full-time employees, interim CFOs serve in contract-based roles that can be easily scaled up or scaled back as needed.

Interim CFOs can quickly provide your organization with financial leadership. They are experienced in quickly assessing a business’s financial landscape and identifying areas that need immediate attention. Whether it’s streamlining processes, implementing cost-saving measures or identifying new revenue streams, they have the knowledge and skills to take action.

Headhunting for a full-time CFO can be a lengthy and complex process and hiring the wrong candidate can be costly. By bringing in a temporary CFO, organizations can reduce the risk and take the time needed to find the right permanent executive.

Interim CFO roles and responsibilities

Interim CFOs can help organizations optimize their financial performance and position themselves for growth by managing the following:

• Financial strategy and forecasting: An interim CFO can guide a business’s financial direction by aligning financial plans with goals and growth objectives. They develop budgets, financial models and forecasts that provide leadership with a clearer view of future revenue, expenses and capital needs.
• Cash flow and risk management: Your outsourced CFO can focus on maintaining healthy cash flow by monitoring liquidity, optimizing working capital and identifying opportunities to improve cash management practices. They can also evaluate financial and operational risks, helping leaders implement strategies to mitigate threats and strengthen business resilience.
• Financial reporting and controls: An interim CFO can lead the preparation and review of financial reports. They assess internal controls, accounting processes and compliance procedures to identify weaknesses and reduce the risk of errors or fraud.

What are the benefits of hiring an interim CFO? 

When you bring the right interim CFO on board, the benefits to your business can include:

• Leadership through a transition: Interim CFOs are proven leaders who can manage teams, motivate employees and provide strategic guidance during transition periods. They can stabilize your organization’s finance function and address immediate challenges, helping to build a solid foundation for the incoming executive.
• Making the right permanent hire: They can also provide valuable insights and recommendations for the hiring process to help ensure that your organization finds the right permanent CFO who can build upon the interim CFO’s accomplishments. And after the hiring process, they can serve your organization by helping guide your new leadership through the onboarding and adjustment period.
• An objective perspective: Interim CFOs bring an objective, third-party perspective to your organization, providing fresh insights and identifying areas for improvement. Their external viewpoint enables them to identify financial inefficiencies, recommend best practices and help drive meaningful change. They can also better challenge existing assumptions, stimulate innovation and help your organization adapt to evolving market conditions.

What projects can an interim CFO lead?

Major projects or objectives aren’t going to wait for you to transition your leadership. Interim CFOs can provide valuable financial knowledge and support for specific projects, including:

Introducing a new product or service

An interim CFO can help evaluate the financial viability of a new offering by developing revenue projections, profitability models and investment requirements. They can also establish pricing strategies, assess risks and monitor key performance indicators to help ensure the launch achieves its financial objectives.

Mergers and acquisitions

During a merger or acquisition, an interim CFO can support financial due diligence, valuation analysis and deal structuring. They can also help identify potential risks and assist with post-transaction integration planning to help ensure a smooth transition and maximize value.

Restructuring

When an organization needs to improve performance, reduce costs or realign operations, an interim CFO can provide objective financial leadership. They can analyze cash flow, identify opportunities for operational improvements and develop strategies to strengthen the organization’s financial position.

Initial public offerings

Preparing for an IPO requires extensive financial planning, regulatory compliance and investor readiness. An interim CFO can help establish the financial reporting processes, internal controls and governance structures needed to support a successful public offering while building confidence among potential investors.

Implementing new accounting systems

An interim CFO can oversee the selection, implementation and optimization of accounting and financial management systems. They can help ensure the new platform aligns with business objectives, supports accurate reporting and minimizes disruptions during the transition.

They can also develop financial forecasts, justify costs to potential lenders and investors and provide strategic guidance throughout the project’s life cycle.

How interim CFO services compare to finance and accounting services

Interim CFO services and finance and accounting services both help organizations strengthen their finance function without adding full-time staff, but they serve different purposes.

An interim CFO provides executive-level financial leadership, helping organizations navigate strategic decisions, growth initiatives, cash flow management, forecasting and financial planning. They serve as a trusted advisor to leadership teams, boards and investors, bringing the perspective and guidance of a seasoned CFO during times of transition or transformation.

Outsourced finance and accounting services focus on executing and managing the day-to-day financial operations. These services can include:

• Bookkeeping
• Accounts payable and receivable
• Month-end close
• Reconciliations
• Financial reporting
• Budgeting support
• Controller-level oversight

What to look for in interim CFO services

You want to find an interim CFO with financial leadership experience who is also a good fit for your business.

Key factors to consider include:

• Strategic leadership: The interim CFO should do more than manage financial reporting. They should help align financial strategy with business objectives, support growth initiatives and provide guidance during critical transitions.
• Relevant experience: Look for a CFO who has experience working with businesses similar to yours in terms of industry, size, structure, growth goals, etc.
• Ability to drive results quickly: Since interim engagements are often time-sensitive, the CFO should be able to assess priorities, implement solutions and deliver measurable improvements within a short time frame.
• Knowledge transfer and team development: A quality interim CFO helps strengthen the internal finance function by mentoring staff, improving processes and preparing the organization for long-term success after the engagement ends.

Wipfli’s outsourced CFO services can help your organization manage uncertainty with effective interim financial leadership. Our team offers the financial knowledge and leadership you need without the cost or complexity of hiring for a full-time position. Start a conversation.

Read more.

• Capital allocation strategy: How CFOs are resetting priorities
• Outsourced CFOs vs. fund administrators: Understanding the distinct (and complementary) roles
• Improving efficiency and scalability with an outsourced CFO