With the Australian stockmarket in rebound and an improved Federal budget outlook announced today, it appears that Australia may perhaps be over the worst of the global financial crisis. More Aussie consumers are feeling confident and the government and Treasury are starting to talk about reducing their stimulous measures.
For business owners this means keeping a watchful eye out for changes in government policy that may affect your business. Already there have been changes muted in the tax treatment of Trusts; submissions are being sought about the Reseach and Development Tax Incentive; and the Henry Tax Review (which some suggest may influence the domestic and economic life of Australia for a generation) is expected to deliver its findings in December.
A lot is happening.
There are also implications of interest rate increases to consider; foreign exchange issues (if the US dollar continues its downward trend); the implications for the housing industry with the cessation of the first home owner grants; and the much discussed Emissions Trading Scheme. Changes in workplace law came into effect on 1 July and another round of changes will apply from 1 January.
More than ever it is important that businesses have the right people in place to assist and advise them. Part Time Professionals was created especially to help companies during this challenging environment.
Part Time Professionals are therefore delighted that, with a solid membership of over 280 accountants, financial controllers, CFO's and other executives in our CFO Network throughout Australia, we are well placed to quickly help any business resource its in-house, part-time and interim management needs.
In an era of rapid and unprecedented economic change, it is important that every business has access to flexible and cost-effective executive and management resources. Whether preparing regular financial reports, budgeting, buying or selling businesses, negotiating finance with a bank, risk assessment, interim in-house accounting support and much more, our CFO Network members are readily available to assist.
The global demand for part-time CFO services has escalated since the start of the Global Financial Crisis. All over the world companies are reviewing their senior finance and accounting requirements and discovering that they have needs that are uniquely filled by an experienced financial executive who works for a variety of companies concurrently.
The service is affordable and the value-add is significant and tangible.
There are three common mistakes that companies make when considering hiring a part-time CFO.
1. Waiting Too Long
The time to hire a part-time CFO is based on three factors - complexity, level of business growth or shrinkage, and size.
There comes a time when every business becomes too complex for one person (eg the founder or CEO) to retain all the details of the business in their head. Systems and processes are necessary to enable the business leaders to make good decisions. A qualified CFO has experience dealing with many complex business situations - and building reporting and measuring systems that enable management to make the right decisions is one of their key strengths.
When a business remains both small and static it can often survive without a CFO. But most companies don't want to remain small and static. They want to grow and prosper. When companies face rapid growth, their systems and processes can overheat. New systems need to be designed - and quickly. This is also true for companies that are downsizing. They often hang on to too many systems and too much overhead for too long - and this can bury them. An experienced CFO can help these companies through these volatile cycles.
And when should a company begin to consider adding a part-time CFO to the management team? Globally, a benchmark of companies with a turnover approaching $1 million turnover are often quoted. Of course, start-up and pre-revenue companies can also benefit from the assistance of a part-time CFO.
Hiring a part-time CFO at the right time for your business can reduce both the cost and frustration of waiting too long.
2. Lack of Influence and Executive Voice
Who do you think should fill the part-time CFO position? Of course, this person must have the formal education, professional certifications and have a number of years hands-on senior management experience. The decision to bring on a person of this skillset needs to be coupled with a commitment to empower the individual to add as much value to the organisation as possible. They should be included in the business decisions and they should be sharing thoughts and advice regularly to benefit the company.
A monthly meeting with the leaders/executives of the company is one of the best places to start. Often the part-time CFO presents the company's financial statements at this meeting, which always leads to strategic discussions about how to improve the business.
3. Short Term Relationships
When a new employee commences employment, research suggests that they learn most during the first three months in a role. Their value contribution increases from day to day. Hiring a part-time CFO is no different. Although they are much more experienced at receiving a fast handover of responsibility than other full-time employees, their value to the business does increase exponentially with their tenure in the role. In almost all instances, a permanent part-time CFO creates the most sustainable value for the business.
Part Time Professionals has been in the business of helping Australian companies source their part-time CFO's for many years. As a leading expert in this area, we'd be delighted to share our experience with you.
If you are considering whether a part-time, contract or interim CFO would be right for your business, just give a call on 1300 79 1946 and our staff will be happy to provide you with some obligation-free advice.
For those companies with permanent and part-time employees, changes to Fair Work Act will have a significant impact on your business. The first of the changes commenced on 1 July 2009 and the remaining changes will take effect from 1 January 2010.
One of Part Time Professionals' long-time supporters, CompliSpace, has prepared a White Paper that summarises the impact of all these changes for your business. If you have not read up on the issue, this is an excellent place to start. For a complimentary copy, Click Here.
also recently launched an on-line HR Risk Self Assessment Survey. It takes
about 10 - 15 minutes to complete and at the end who ever fills it out is
emailed a detailed report that provides them with a HR Risk Profile tailored for
their organisation. This is a great tool and it is free. I would encourage you
to complete the survey. To access Click Here.
Finally, CompliSpace are also running a series of seminars on this topic in Sydney, Melbourne and Perth. For details of dates and locations, Click Here.
The Australian Securites and Exchange Commission (ASIC) have recently been holding a series of seminars on web scams and swindles. They even have a website dedicated to the topic.
In the interest of our readers, Part Time Professionals thought we would share an email we just received as an example of the most recent web scam around. If you ever receive this email, remember you were warned!
Minister of Treasury Paulson
(I could certainly do with the funds. Perhaps I should reply? Ed.)
About Part Time Professionals
Part Time Professionals™ is wholly owned and operated in Australia. Our principals together have over 40 years experience in public accounting and as CFO's and Directors in multiple companies - both listed and unlisted. They are members of the Institute of Chartered Accountants in Australia, CPA Australia, the National Tax Agents Association, the Australian Institute of Company Directors, the Financial Executives Institute and the National Institute of Accountants.
Our aim is to help companies source the most experienced CFO, executive and corporate accounting talent, in the most cost-effective way! And we provide talented part-time, interim and contract accountants, financial controllers, CFO's and other executives without any upfront recruitment fees.
We are constantly updating our website, so take a look at www.ptprofessionals.com.au for more information or call us on 1300 79 1946 to discuss your needs.
Phone 1300 79 1946 | +61 2 9973 3179 | firstname.lastname@example.org
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