Denice R. Preston
In the interim, a CFO typically has 6-8 months to finish the task as defined by the business, which means that the first 30 days be vital to achieving the goals of the post and establishing the right long-term plan for the company.
Jen Banzaca has been a financial journalist for the past 16 years. She has covered topics ranging from the latest trends in financial services to investment hedge funds regulations, compliance issues, and best practices.
The role of an interim chief financial officer can assist a business in filling in the void left by the resignation of a permanent chief financial officer, assist in preparing for a significant event such as a merger, or help the company make essential changes to its financial processes.
But, the typical interim role last between 6 and 8 months. This means there’s a time limit for completing the tasks set out by the business, which makes interim CFOs want to get going to have the best chance of success. The first 30 days of those in temporary positions are crucial to establish a long-term plan for the company.
What Does an Interim CFO Do?
In the past, the finance department dealt with records and books accounting, financial reporting, and compliance with the law. Still, the CFO of tomorrow must be able to take the financial data and apply it to guide decisions made in the operational process and formulate a strategy.
Finance expert from Toptal Paul Ainsworth noted that sure of the competencies required for the modern CFO, whether part-time or full-time or interim, include the ability to communicate and lead as well as a solid knowledge of the model of business and the industry to comprehend and manage risk, as well as assist in the development of strategies, as well as helping to facilitate its implementation.
How to Prepare for the First Day
Doing your due diligence is crucial in preparing yourself for an interim Chief Financial Officer post and being aware of the situation you’re getting yourself into.
Toptal Finance specialist Patrick Boyce explained that before his first day of work, an interim CFO should be familiar with his finance staff and aware of the work project and the deadline for the task.
“Do the usual due diligence of an employee who will be coming into a company. You should be aware of the specifics of the job you’ll be entering and what you’ll be required to perform and whom your team members are and what systems that they have already set up to allow you to accomplish your job,” Boyce said.
The most important aspect is to become familiar with Finance personnel, Boyce added, as an interim CFO can’t do the job without the team’s support.
“Without the attention on the front-line employees regardless of how skilled you are with numbers it will be extremely difficult to achieve success in this job. I believe that understanding this is the key for your accomplishment as interim Chief Financial Officer,” Boyce noted.
Ainsworth said that, unlike the permanent CFO job, there isn’t a “settling in” phase with an interim, temporary position. This is why preparing is crucial. In the first few days, the acting CFO needs to be aware of the company, the main stakeholders, and all other relevant information that could be gathered before the commencement date.
In many cases, the interim CFO could be used as a bridge between the CFO who was previously in charge and the new CFO. Ainsworth said this could impact the relationship with the Finance team and interim CFO.
“You aren’t likely to find a need for interim CFOs if everything looks good on the outside. Therefore, you must be aware of what you’re getting yourself into and what you’ll have to do and bring the rest of the finance and management team in your corner,” Ainsworth advised.
As the day’s first one is likely to be quite chaotic, Toptal finance expert Scott Hoover suggested doing as much before the first day as possible holding virtual meetings with finance team members to complete the onboarding process.
“You need to get going the first day of your job. You do not need to be coordinating with IT to establish access to everything, or holding meetings for you to meet everyone else,” Hoover said.
A Typical First Day for an Interim CEO
So, what role does an interim CFO perform during their first day of employment?
The attention should be placed on individuals. Boyce suggests going through the company’s organization chart to determine who the most influential decision-makers in the business are, as well as those within the company who can influence the work of the interim CFO and who he will collaborate with.
The interim CFO must also make time to understand the finance team and other critical company stakeholders.
“What do you think of the personal characteristics the individuals in your finance department and your direct subordinates? What’s your relationship to be with other stakeholders of the business? These are essential issues to be aware of and you must spend the majority of your time in your first few days paying attention to the people around you,” Ainsworth said.
Hoover said that people should be at the forefront of their attention, and an interim CFO would want to devote time in the beginning to building a rapport with the top management team, especially the CEO, and everyone else who is crucial to the operation, including sales, the accounting, and the operations team.
But, Hoover warned that an interim CFO might be perceived as a threat, and it’s essential to spend a significant amount of time trying to gain people’s trust so that they follow your example.
Furthermore, Ainsworth said an interim CFO’s first day must concentrate on defining the deliverables and the main priorities for the post.
