Companies thrive when they have the right leadership in place. The SaaS industry is fiercely competitive with the right c-suite team being vital for success. More SaaS companies than ever are turning to the help of a part-time CFO. This evolving leadership role involves overseeing everything from cash flow to stakeholder relations and employee retention.
It’s a common misconception that only SaaS companies on the stock market have a CFO. Senior financial professionals are increasingly working on a part-time basis to make their skills and knowledge accessible to SMEs and scaling companies. Hiring a part-time CFO enables SaaS companies to thrive without the higher financial burden of a full-time CFO.
Financial recruitment agencies, such as FD Capital, are seeing sustained demand from SaaS companies recruiting part-time CFOs on an in-house and remote basis. There are several points in a company’s development where a CFO is vital, from its growth strategy to assisting with mergers and acquisitions.
We’re examining why SaaS companies are thriving with the help of a part-time CFO and when these companies are choosing to start recruiting.
Today’s CFOs are ‘Chief Future Officers’
The role of CFO is evolving beyond number crunching and data analysis. Today’s CFOs are a ‘Chief Future Officer’, preparing the company for its next moves both in the short and long term. Part-time CFOs enable SaaS companies to avail of the skills and strategy of a senior financial executive.
The data-driven insights of a part-time CFO allow SaaS companies to prepare for the future, from recession planning to debt refinancing. A part-time SaaS CFO will put technology and system in place to enable the organisation to adapt and restructure. Most CFOs join SaaS companies by carrying out an audit to identify any problems within the organisation.
A CFO is a Chief Future Officer as they are intimately involved in the future planning of the organisation, working in unison with the CEO as their chief advisor. Investors and board members turn to CFOs are their eyes and ears within the organisation.
A successful SaaS CFO will have a strong relationship with stakeholders and have implemented systems and real-time forecasting to allow the company to react to industry and market changes.
When Should SaaS Companies Hire a Part-Time CFO?
Timing is everything. Deciding to expand your c-suite team is a serious commitment and investment in the future of any company. SaaS companies choose to hire a part-time CFO are different stages of their development and growth cycle. CFOs typically specialise in specific aspects, from fundraising to mergers or growth acceleration.
It’s common for SaaS companies to hire a part-time CFO when they’re preparing to seek seed or Series A fundraising. PE houses and private investors are more confident with investing in companies that have a CFO on their c-suite team.
Hiring a part-time CFO before a merger or acquisition can enable a SaaS company to get its house financing in order. While it’s common to hire a CFO at times of growth, SaaS companies can also call in a part-time CFO when they’re experiencing a financial downturn.
A SaaS company should hire a part-time CFO when they need additional financial support and a fresh perspective on their strategic decisions. The current global economic situation gives SaaS companies with a healthy balance sheet and a CFO to expand and grow at a time of market volatility.
Full-Time vs. Part-Time CFO
There are several reasons why a SaaS company may choose to hire a part-time CFO vs. a full-time CFO. These reasons often come down to two factors – time and money. Not every SaaS company is at the stage where it requires a full-time CFO or can afford to pay a c-suite salary.
SaaS companies have the option of working with a part-time CFO to fill their skills gap and grow their company more cost-effectively.
- No Long-Term Commitment
Finding a CFO to work with takes time. The CEO/CFO relationship is vital to the success of any SaaS business. Starting by hiring your CFO on a part-time basis means there isn’t a long-term commitment. You can try out a candidate and decide if they’re the right fit for your organisation and leadership team.
A SaaS company can choose to promote its part-time CFO to a full-time position when it’s financially viable.
- Fills a SaaS Company’s Skills Gap
Even the most talented CEO has a skills gap. Many SaaS leadership teams come to the industry with limited financial or investment engagement experience. Working with a recruitment agency allows SaaS companies to identify their specific skills gaps and hire a CFO accordingly.
- Cost Effective Option
SaaS companies may be choosing to hire a part-time CFO when they’re going through a growth stage or when they require debt refinancing. A part-time CFO is a more cost-effective option for companies that are still growing.
SaaS Companies and CFO Fundraising
Fundraising can be a major headache for SaaS companies, particularly if the c-suite team lacks investing experience. Having a CFO on board can streamline the process and makes PE houses and investors more likely to be interested in your company.
SaaS companies are recruiting part-time CFOs to oversee seed and Series A fundraising efforts. Most CFOs will choose to prepare for fundraising rounds by investing in technology and software to streamline accounting and efficiency.
How Your SaaS Company Can Hire a Part-Time CFO
Recruiting a CFO is a major investment for any SaaS company. While you can choose to recruit independently, working with a specialist recruitment agency will streamline the process. These specialists will present a shortlist of candidates with the most suitable financial executives who meet your company’s skills requirements.
Working with a recruitment agency allows you to outsource the advertising and interview process while keeping the CEO involved at each step.
Agencies like FD Capital provide a tailored recruitment process that connects SaaS companies with the right part-time CFO for them. You can start recruiting a part-time CFO for your SaaS company by contacting FD Capital at recruitment@fdcapital.co.uk.