Part-Time CFO Division a Result of Client Demand
We are now offering clients and prospects a part-time CFO division, which will line up experienced CFOs to help PR and other creative services agencies get a better grip on their financials, profitability, budgets, time management and billing models. These CFOs will be under the G+P umbrella, working closely with the G+P team.
The demand among small-to midsize-PR firms for part-time CFOs continues to accelerate. As PR agencies take on new practices and provide additional and more digitally oriented services to their clients, bringing aboard a part-time CFO may prove invaluable. Here are just a few of the assets that a part-time CFO brings to the table.
1. Effective Budgeting. Budgeting can be a drag for PR agency owners, a left-brain exercise for people who tend to be more right brain. A part-time CFO can create budgets that will be the basis for the fee quotes. She/he will also prepare a “rolling budget” that is updated monthly, accounting for new hires, new business, lost business and infrastructure investment needed (particularly on the digital front).
2. Maintain books and records. A part-time CFO will get your chart of accounts in conformity with Gould+Partners exemplary standards. This is crucial, since the chart of accounts is the underpinning for your general ledger and, ultimately, your financial statements.
3. Cash Management. Effective cash management is a necessity to sustain and grow any PR agency. A firm may show high profitability but be insolvent. Sounds incredible, but we have seen it many times. The profits may all be in the receivables. If the receivables are not collected the firm will not survive. The part-time CFO will assure that receivables are collected timely and if not, recommend appropriate action—stop work, collection agency, sue. All told, the part-time CFO will make cash management, budgeting and predicting the future an ongoing responsibility for your firm.
4. Time Management. A part-time CFO will assure that PR firms have an effective time-management system in place that can monitor scope-creep (overservicing)—one of the most nettlesome problems facing the PR business—and negotiate additional fees from clients.
A part-time CFO will get a better handle on baseline hours, or the available client hours, for each staff person (typically 1700 hours, but a lot depends on each staffer’s allowance for vacation time, personal time, maternity leave, paid holidays, etc.).
In addition, the part-time CFO will price out proposals based on the work projected and the billing rates of the staff assigned to the account team. She/he must be sure the team is staffed for maximum efficiency and productivity and, at the same time, achieves the profitability goals of the firm.
All told, the part-time CFO will make cash management, budgeting and predicting the future an ongoing responsibility for your firm. The upside will be improved top and bottom lines and added value to the entire operation.
Gould+Partners is able to tap into an extensive network of qualified financial executives to for a part-time CFO position. We will assess the firms needs and recommend the services needed going forward.
Our division is starting to grow. Interested CFOs should send their resume and references to Rick Gould.