This article is from the archives of the Wall Street Journal, and while a trend in recessionary times, it might be more true today. What do you think?
For Rent: Chief Financial Officer
Firms Outsource a Top Job as Cheaper Than Hiring Their Own Executive
The Boston-based company had sales growth in the double digits for the past few years, when revenue fell flat last fall. Now, thanks to the part-time CFO’s guidance, the company is stable with revenue down 20% to 30%, but profitability higher than in the previous months, he says.
If we hadn’t had this service, “we would still be struggling,” Mr. Lovata says.
Some small-business owners in need of accounting help to balance their books and guide them out of a financial black hole are renting CFOs rather than hiring them. The strategy comes at a time when the deep recession has forced small companies to look for money-saving alternatives that can yield good returns yet avoid substantial overhead costs.