Interim CFO

A typical interim CFO engagement is one where the client has a full-time CFO, but has an immediate need for a change. This could be due to performance issues or an unexpected resignation. In either case, the client needs someone to step in and manage the finances and staff during the transition to another full-time CFO.

These engagements have ranged from two days a week for a three month period, to full-time for six months.

My approach entails the following steps:

  • Debrief the outgoing CFO to learn as much as I can, focusing on the most important aspects first. Because the relationship between the company and the outgoing CFO has effectively ended, I never know how much cooperation I will get. However, I’ve been successful in these transitions by treating the outgoing CFO with respect and professionalism.
  • Meet with the staff to assess morale, listen to their concerns, and stabilize the department.
  • Review all significant procedures to ensure they meet, or are brought up to, professional standards. This includes internal controls, compliance with legal and tax regulations, bank covenants, audits, regulatory reporting, etc.
  • Meet with senior management to determine what changes in the finance and accounting area would benefit them in making business decisions.
  • Examine and improve internal processes, focusing on how the department can add more value.
  • Determine the appropriate staffing level to ensure that the department is running efficiently while meeting the needs of management.
  • Assist in the search for and vetting of candidates for the CFO position.
  • Manage the transition of responsibilities and leadership to the new CFO.

Here are just a few noteworthy accomplishments during these engagements:

Client in the Pharmacogenomic space with annual revenue of ~$8MM

Examination of internal billing procedures resulted in the discovery of $875,000 of revenue that should have been, but was not, billed to customers. This was billed and collected by the end of the engagement.

Client in the Home Energy Audit space with annual revenue of ~$35MM

Examination of accounting controls revealed $375,000 of earned revenue that was not billed to a major customer. This was billed and collected by the end of the engagement.

Reduced financial closing process from 24 working days to four, with higher accuracy, supplying management with timely information with which to make business decisions.

Client in the Digital Consumer Retail space with revenue of ~$150MM

Analyzed business processes and accounting controls, identifying $100,000+ of duplicate payments to vendors. Reclaimed the cash and established control procedures to prevent and/or detect future errors.

Organized the finance department to maximize efficiency and reduce the financial closing process from 21 working days to four, with higher accuracy, supplying management with timely information with which to make business decisions.