Small- to medium-sized construction businesses usually do plenty of sub-contracting of specialty work depending on a specific project’s needs. Without a steady flow of jobs with those special requirements, it is not cost-effective to maintain all the equipment and labor on full-time availability if the business only occasionally needs specialty work.

This same approach applies to general contractors when using the services of a fractional CFO. Hiring a full-time chief financial officer (CFO) may not be affordable or appropriate. Salary.com reports the median salary for a CFO in America is $397,448. A CFO may also get stock options, incentive bonuses, and other types of compensation. The highest-paid CFOs working for Fortune 500 companies earn millions each year.

When a full-time CFO is not required, it makes perfect sense to use fractional CFO consulting to help contractors, company executives, accountants, and controllers resolve financially-related challenges, improve financial strategies, and maximize profitability. Part-time CFOs usually bill on an hourly basis for pre-agreed tasks that they perform. There is an intense focus on improving the business and taking care of serious problems for a cost-effective investment.

Part-Time CFO Consulting

There are occasions when having the advice, expertise, and help of an experienced CFO who is on-call as needed is very useful.

Examples of work that a temporary CFO can do include:

● Manage a merger or major acquisition.
● Create the structure for a capital raise.
● Verify compliance with financial industry regulations.
● Change management during a company restructuring or downsizing.
● Negotiating with creditors during a Chapter 11 Bankruptcy.
● Setting up or increasing credit lines.
● Prepare a company to go public.
● Conduct an internal audit.
● Prepare expert evidence for a financial damage claim or an insurance claim.
● Analyze pricing to improve cash flow.
● Represent the company in an IRS audit.
● Investigate company finances to propose improvements.
● Lower the cost of borrowed funds.
● Create a long-term financial plan coordinated with strategic business plans.
● Bring valuable contacts such as funding sources and external partners.
● Create forecasts and budgets.
● Review official accounting and finance processes, human resources, and IT for compliance and improvements.
● Recommend and supervise an IT system upgrade to implement cloud services to replace ineffective legacy accounting systems.

Construction Project CFO-For-Hire

Another way a general contractor or construction business may benefit from fractional CFO consulting is when the company takes on a big construction project with complex financing needs. For these circumstances, a construction project CFO focuses on the needs of a particular construction project and may work as a freelance CFO as the project requires.

Team CFO Consultants

For certain tasks, hiring a CFO that comes with a support team is more cost-effective. The CFO consultant supervises the team, and the lower-cost team members execute the tasks needed. For example, accounting clerks can organize and assemble all the data required for analysis, and then the part-time CFO can make a strategic report based on the findings.

The Value Proposition

CFOs are well paid because much of their work helps construction companies make more money and save time. The financial impact of the implementation of suggested improvements creates positive effects on the income statement and balance sheet.

DAAXIT independent CFO consulting focuses on making improvements in the most impactful ways in finance, marketing, technology, and human resources. If you are not working with DAAXIT and trying to manage a construction company without a CFO, you are almost certainly losing money on systemic problems that a talented CFO can identify and help remedy.

You can expect improvements to include:

● Better cash flow management.
● Reduced overhead costs.
● Increase gross margins.
● Clarity and focus on profitability.
● Positioning the company for growth.

Work with a company with decades of experience, specifically improving the financial performance of companies in the trades, construction industry, and general contracting business.

Get the answers to these questions and more:

● Why am I working harder and making less money?
● What will stimulate the company’s growth?
● Am I over-staffed or under-staffed?
● What technological solutions can improve financial results?
● How is the company doing compared to the competition?
● Is it time to open a new location?
● How can your company mitigate financial risk?
● How can the company attract investors?
● How can the company raise the equity financing to finance development projects?
● Is it time to take the company public?
● How do you value your business for sale?
● How can the owner retire and transition the business to others to keep it going?

Don’t spend another sleepless night worrying about your company’s finances. Contact DAAXIT today to schedule a consultation and get the professional help you need without delay.