Comments on: The right fee for a part-time CFO http://smallbusiness.blogs.cnnmoney.cnn.com/2008/08/04/the-right-fee-for-a-part-time-cfo/ Editors from FSB magazine answer your pressing small-business questions. Tue, 15 Dec 2009 12:52:55 +0000 http://wordpress.com/ hourly 1 By: Rick Gallagher, Zimmerman, Minnesota http://smallbusiness.blogs.cnnmoney.cnn.com/2008/08/04/the-right-fee-for-a-part-time-cfo/#comment-1589 Rick Gallagher, Zimmerman, Minnesota Sun, 08 Mar 2009 15:41:39 +0000 http://askfsb.wordpress.com/?p=511#comment-1589 From what you have described, your business could use some help from a part-time controller and a part-time CFO. A business in your area that offers such services should be willing to help tailor a solution to meet your needs. And, more importantly, should be able to show you the value th solution will bring. I own just such an organization in Minnesota. I recommend you find someone local to your area. If you want to talk more about services and ideas, I can be reached through my company. The company's contact information is on their website. Rick Gallagher GuideSource www.WisdomForHire.com From what you have described, your business could use some help from a part-time controller and a part-time CFO. A business in your area that offers such services should be willing to help tailor a solution to meet your needs. And, more importantly, should be able to show you the value th solution will bring.

I own just such an organization in Minnesota. I recommend you find someone local to your area.

If you want to talk more about services and ideas, I can be reached through my company. The company's contact information is on their website.

Rick Gallagher
GuideSource
http://www.WisdomForHire.com

]]> By: Todd Rammler, CMA, Macomb, MI http://smallbusiness.blogs.cnnmoney.cnn.com/2008/08/04/the-right-fee-for-a-part-time-cfo/#comment-1555 Todd Rammler, CMA, Macomb, MI Tue, 24 Feb 2009 02:36:53 +0000 http://askfsb.wordpress.com/?p=511#comment-1555 Very good question. . . but maybe think a little broader. What she has asked for is really three different functions - writing checks and doing transactional work can be done by a bookkeeper/accountant. Taxes should be done by a CPA. Financial statement review, advising and planning is really where the CFO shines and adds value. Breaking up those tasks and paying the person best-suited for each will ensure that you're paying the correct amount (not overpaying for some tasks while underpaying for others), but will also allow you to hire the best possible person for the job. Matching task to qualified resource, and not assuming "an accountant is an accountant" will ensure you pay the right price, and get the most value. Todd Rammler Michigan CFO Associates "The CFOs for Small Business" Very good question. . . but maybe think a little broader.

What she has asked for is really three different functions – writing checks and doing transactional work can be done by a bookkeeper/accountant.

Taxes should be done by a CPA.

Financial statement review, advising and planning is really where the CFO shines and adds value. Breaking up those tasks and paying the person best-suited for each will ensure that you're paying the correct amount (not overpaying for some tasks while underpaying for others), but will also allow you to hire the best possible person for the job. Matching task to qualified resource, and not assuming "an accountant is an accountant" will ensure you pay the right price, and get the most value.

Todd Rammler
Michigan CFO Associates
"The CFOs for Small Business"

]]> By: Ken Kaufman, Pleasant Grove, UT http://smallbusiness.blogs.cnnmoney.cnn.com/2008/08/04/the-right-fee-for-a-part-time-cfo/#comment-1181 Ken Kaufman, Pleasant Grove, UT Sun, 14 Dec 2008 04:02:46 +0000 http://askfsb.wordpress.com/?p=511#comment-1181 In my experience, almost every company needs the startegic advice and perspective of a CFO. The large companies have one full-time, and they bring real value to their company. In the case of business not being big enough to justify having a full-time CFO, then contracting or outsourcing is the best option. I am intimately familar with the benefits that the right CFO for the right amount of time at the right cost can bring. It is very common for the controller, as decribed by others in these answers, and the executive team to have a rift in communication. The two speak different languages and they see things from completely different angles. A CFO bridges the gap - they think like an entrepreneur or executive team, but they grew up in the accounting world and appreciate and know how to use that perspective to the full advantage of the company. In my experience, almost every company needs the startegic advice and perspective of a CFO. The large companies have one full-time, and they bring real value to their company.

In the case of business not being big enough to justify having a full-time CFO, then contracting or outsourcing is the best option. I am intimately familar with the benefits that the right CFO for the right amount of time at the right cost can bring.

It is very common for the controller, as decribed by others in these answers, and the executive team to have a rift in communication. The two speak different languages and they see things from completely different angles. A CFO bridges the gap – they think like an entrepreneur or executive team, but they grew up in the accounting world and appreciate and know how to use that perspective to the full advantage of the company.

]]> By: Larry Jadrych, CPA, Rochester Hills, MI http://smallbusiness.blogs.cnnmoney.cnn.com/2008/08/04/the-right-fee-for-a-part-time-cfo/#comment-857 Larry Jadrych, CPA, Rochester Hills, MI Wed, 20 Aug 2008 21:22:46 +0000 http://askfsb.wordpress.com/?p=511#comment-857 Mr. Jerry Love (David, Kinard & Co.) presented the best advice of those offered and paid attention to the question asked. Since Ms. Lane's accountant is providing many services, she should engage a CPA to review the "monthly financial reports" for compliance with GAAP and review the "annual taxes" for compliance with current U.S. Treasury regulations and legal decisions affecting Texas. Not everyone is qualified. As for "advise in financial matters," a CPA is most qualified to advise and recommend other specialized professionals. Mr. Jerry Love (David, Kinard & Co.) presented the best advice of those offered and paid attention to the question asked. Since Ms. Lane's accountant is providing many services, she should engage a CPA to review the "monthly financial reports" for compliance with GAAP and review the "annual taxes" for compliance with current U.S. Treasury regulations and legal decisions affecting Texas. Not everyone is qualified. As for "advise in financial matters," a CPA is most qualified to advise and recommend other specialized professionals.

]]> By: Jennifer Tsantes http://smallbusiness.blogs.cnnmoney.cnn.com/2008/08/04/the-right-fee-for-a-part-time-cfo/#comment-834 Jennifer Tsantes Mon, 11 Aug 2008 01:56:28 +0000 http://askfsb.wordpress.com/?p=511#comment-834 I think that a controller is the route, but possibly keep the idea of a contract CFO for review purposes once a quarter and at year end before everything goes to the CPA. The CPA can be the check behind for the bookkeeper and/or the controller. It's great when you can put a team with specific rolls for each person to perform in place whether they are an employee or contract. Then you have an inside view and an outside industry view. Also, the rates in our area go from $40 (bookkeeping) to $100 (consulting) per hour depending on the work. I think that a controller is the route, but possibly keep the idea of a contract CFO for review purposes once a quarter and at year end before everything goes to the CPA. The CPA can be the check behind for the bookkeeper and/or the controller. It's great when you can put a team with specific rolls for each person to perform in place whether they are an employee or contract. Then you have an inside view and an outside industry view.

Also, the rates in our area go from $40 (bookkeeping) to $100 (consulting) per hour depending on the work.

]]> By: Joellen Sommer, Your Own CFO, Inc. http://smallbusiness.blogs.cnnmoney.cnn.com/2008/08/04/the-right-fee-for-a-part-time-cfo/#comment-833 Joellen Sommer, Your Own CFO, Inc. Sat, 09 Aug 2008 18:49:09 +0000 http://askfsb.wordpress.com/?p=511#comment-833 Your Own CFO also provides Part-time and Virtual CFO services to small businesses. We work with business owners to help improve profitability, implement planning systems and connecting their ideas and new business ventures to an improved bottom line. Other services include business health check-ups, budgets, forecasts, commission plans, partner splits and Mentoring/Coaching. Your Own CFO also provides Part-time and Virtual CFO services to small businesses. We work with business owners to help improve profitability, implement planning systems and connecting their ideas and new business ventures to an improved bottom line. Other services include business health check-ups, budgets, forecasts, commission plans, partner splits and Mentoring/Coaching.

]]> By: Lawrence Carson, Boise, ID http://smallbusiness.blogs.cnnmoney.cnn.com/2008/08/04/the-right-fee-for-a-part-time-cfo/#comment-832 Lawrence Carson, Boise, ID Sat, 09 Aug 2008 16:00:46 +0000 http://askfsb.wordpress.com/?p=511#comment-832 Quandary: A "CFO" vs ... a "Controller". So what really is the roll differences between the two positions? One assists the Board of Directors and their Officers to "Make Money" while the other "Keeps The Score." (bean stalk producers vs. bean harvest counters) With some 35 years experience starting in public accounting as a CPA, moving on to the position of Controller and then into organizational turnarounds as the CFO ... in my opinion ... the latter knows how to sell and create money making opportunities ... while the former acts as an insurance guard keeping the SEC, IRS and local regulatory agencies off your back. One is offensive the other defensive and both are essential to "play the game while producing and maintaining a winning score." Quandary: A "CFO" vs … a "Controller".

So what really is the roll differences between the two positions? One assists the Board of Directors and their Officers to "Make Money" while the other "Keeps The Score." (bean stalk producers vs. bean harvest counters)

With some 35 years experience starting in public accounting as a CPA, moving on to the position of Controller and then into organizational turnarounds as the CFO … in my opinion … the latter knows how to sell and create money making opportunities … while the former acts as an insurance guard keeping the SEC, IRS and local regulatory agencies off your back.

One is offensive the other defensive and both are essential to "play the game while producing and maintaining a winning score."

]]> By: Yanina Yung, CFO, eCompetitors, www.ecompetitors.com http://smallbusiness.blogs.cnnmoney.cnn.com/2008/08/04/the-right-fee-for-a-part-time-cfo/#comment-827 Yanina Yung, CFO, eCompetitors, www.ecompetitors.com Thu, 07 Aug 2008 21:47:25 +0000 http://askfsb.wordpress.com/?p=511#comment-827 You really don’t need a CFO. You can simply hire a bookkeeper or starter accountant for this type of work. You really don’t need a CFO. You can simply hire a bookkeeper or starter accountant for this type of work.

]]> By: Irene Goldstein, NY, www.ecompetitors.com http://smallbusiness.blogs.cnnmoney.cnn.com/2008/08/04/the-right-fee-for-a-part-time-cfo/#comment-826 Irene Goldstein, NY, www.ecompetitors.com Thu, 07 Aug 2008 21:45:01 +0000 http://askfsb.wordpress.com/?p=511#comment-826 In my view, you don’t have to look for a Chef Financial Officer. CFO is a high executive position. CFO’s doesn’t write your checks or do your taxes. What you really may do is to train your current staff to do so. In my view, you don’t have to look for a Chef Financial Officer. CFO is a high executive position. CFO’s doesn’t write your checks or do your taxes. What you really may do is to train your current staff to do so.

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