Why SaaS Companies are Turning to Part-Time CFOs

CFOs no longer spend their days balancing spreadsheets and crunching numbers thanks to improvement provided by AI-based Saas metrics forecasting tools. SaaS companies are coming to view their CFOs as a ‘Chief Future Officer’. The evolving c-suite position has seen extraordinary growth in recent years, becoming a de facto second-in-command to the CEO.

Not every SaaS company can afford the financial pressure of a full-time c-suite position. Start-up and scaling companies are turning to part-time CFOs to provide financial, operational, and strategic advice. 

Hiring a part-time CFO doesn’t put SaaS companies at a disadvantage. It can be a game-changer for many SaaS companies, whether they’re undergoing a merger, seeking fundraising, or developing financial systems.

Financial recruitment agencies, such as FD Capital, are experiencing a surge in demand from SaaS companies searching for part-time CFOs. We’re exploring the reasons why SaaS companies are turning to part-time CFOs to shape their future.

When Should a SaaS Company Hire a Part-Time CFO?

Deciding when to expand your c-suite team isn’t easy. Companies choose to hire a CFO at various stages of their development. The evolving role of CFO means they often are hired with a specific responsibility in mind, from spearheading fundraising to restructuring the company’s finances. 

SaaS companies no longer have to wait until their finances can facilitate a full-time CFO appointment. Hiring a part-time CFO allows SaaS companies to benefit from the experience of a senior c-suite appointment without a full-time contract.

When should a SaaS company take the plunge to hire a CFO? Several specific events should lead to the hiring of a CFO, whether on a part-time, full-time, or interim basis. If your company is exploring fundraising opportunities, expanding to a new location, or planning a merger or acquisition, it’s time to call in a CFO.

Many SaaS companies also turn to CFOs when they need to change their company’s fortunes. A CFO will often have an unbiased strategy-driven insight into the company’s operations, including implementing any necessary changes. The evolution of the CFO role means this c-suite position interacts with every aspect of a SaaS company.

Why SaaS Companies are Hiring Part-Time CFOs

Every SaaS company has its own reasons for wanting to hire a part-time CFO. Many turn to a CFO as the second c-suite appointment to act as the chief advisor to the CEO. We’re rounding a few reasons why SaaS companies are recruiting part-time CFOs.

  • Fill the skills gap

SaaS companies typically search for a CFO who can fill a skills gap in the organisation. Some chose CFOs with extensive experience in the industry or who have tailored their CV to specific functions, such as working with PE houses. A SaaS company may choose a CFO to fill the skills gap of a CEO with no previous fundraising experience.

  • A More Affordable Option

Hiring a full-time in-house CFO is expensive, particularly for SaaS companies at the beginning of their growth cycle. Choosing a part-time CFO is more cost-effective and removes the additional costs of benefits, such as training and equipment. Most part-time CFOs work alongside several clients and have developed their experience in other roles. 

FD Capital is seeing a growth in demand for part-time CFOs as SaaS companies switch their focus to recruiting CFOs as second-in-command to their CEO.

  • Lower Risk

Why hire a part-time CFO when you can hire a full-time CFO? It lowers the risks involved and allows you to trial a candidate in the role. If you find the right CFO, you can expand their responsibilities as the company grows. You’ll enjoy all the benefits of an in-house CFO without the financial liability of paying a full-time salary.

Start-up SaaS companies don’t always require a full-time CFO. Most part-time CFOs are project focus and act primarily in an advisory role to the CEO. They provide the forecasting and analysis that grounds the company’s strategic decisions.

  • Access to Experienced Financial Professionals

The role of CFO is changing. FD Capital and other recruitment agencies are seeing a growth in demand for remote positions as more CFOs become digital nomads. Hiring on a part-time basis gives you access to experienced financial professionals who are exploring the opportunity of flexible working. 

CFOs can make an immediate difference to your company by overseeing cash flow, fundraising, financial systems, and even assisting with mergers or acquisitions. Having a CFO on your leadership teams makes it easier to attract investors, PE houses, and talent.

  • Objective Advisor

SaaS companies often fall short because they don’t have an objective advisor. That’s where CFOs come in. They make the financial process more transparent by crunching the number, analysing data, and translating their insights into more accessible language.  

Hiring an external CFO to become part of your c-suite team provides SaaS companies with an essential advisor who is unbiased and not emotionally connected to the company. They’ll be able to engage with all aspects of the business and stakeholders.

Investors and board members often rely on a CFO to paint them an accurate picture of the business’ health and overall direction. A part-time CFO will give objective advice on the financial health of the company and its strategy.

  • Enable Growth

One of the most popular times to hire a CFO is when a SaaS company is preparing its growth strategy. A part-time CFO can be the key to unlocking your company’s growth potential and delivering quick results. They’ll put the systems in place that will prepare your company for expansion, including overseeing cash flow and providing forecasting analysis. 

Hiring a part-time CFO enables SaaS companies to prepare for transition periods and growth strategies. Most part-time CFOs will seamlessly become part of the company and work in a quicker time frame than their full-time counterparts