What to Expect from an Interim CFO in the First 90 Days

When businesses bring in an Interim CFO, it’s often during pivotal times. Whether it’s navigating financial turbulence, preparing for a merger, or filling a sudden leadership gap, an Interim CFO is there to provide stability and direction.

But what exactly should you expect in those critical first 90 days? Let’s break it down to understand how these financial experts bring immediate value.

The Role of an Interim CFO

It is a temporary but crucial addition to the leadership team, stepping in to manage financial operations, develop strategies, and ensure the company stays on a steady course.

Unlike a permanent CFO, they are brought in with a laser focus on specific challenges or transitions, often under tight timelines.

Why Businesses Hire Interim CFOs

Businesses typically turn to them during:

• Financial crises: When immediate restructuring or cost management is needed.

• Leadership transitions: To fill gaps while searching for a permanent CFO.

• Growth phases: When preparing for expansions, acquisitions, or IPOs.

Day 1-30: Assessment and Strategy Development

I. Initial Review and Understanding

In the first month, their primary task is to understand the company’s financial landscape. This involves:

• Financial Audits: Reviewing financial statements, cash flow, and existing budgets to identify immediate risks.
• Stakeholder Meetings: Engaging with key personnel, including the CEO, finance team, and board members, to gather insights.

II. Setting Priorities

Once they have a clear picture, the Interim CFO will set short-term priorities. These may include:

• Addressing cash flow issues.
• Identifying cost-saving opportunities.
• Strengthening financial reporting processes.

Day 31-60: Implementation and Stabilization

I. Executing Initial Plans

By the second month, the Interim CFO moves from planning to action. Key activities include:

• Cost Management: Implementing strategies to reduce expenses without compromising operational efficiency.
• Cash Flow Improvements: Ensuring there is enough liquidity to meet the company’s obligations.

II. Building Trust and Communication

Effective communication is vital. The Interim CFO works closely with teams to ensure everyone understands the financial goals and their roles in achieving them.

Day 61-90: Optimization and Handover

I. Long-term Strategy Development

As the Interim CFO stabilizes immediate concerns, they start laying the groundwork for long-term financial health. This involves:

• Strategic Planning: Developing financial strategies aligned with the company’s future goals.
• Succession Planning: Preparing for a smooth transition to the next permanent CFO or continued interim leadership.

II. Handover Process

A key responsibility is ensuring a seamless handover. The Interim CFO documents processes, shares insights, and trains key personnel to maintain continuity.

The Unique Value of an Interim CFO

I. Flexibility and Expertise

They bring a wealth of experience and adaptability. They quickly assess situations and implement effective solutions, making them invaluable during transitional periods.

II. Immediate Impact

Their ability to hit the ground running means businesses see immediate benefits, from improved financial clarity to stabilized operations.

Common Challenges and Solutions

I. Resistance to Change

Employees may resist changes brought by an Interim CFO. Overcoming this requires clear communication and demonstrating the benefits of new strategies.

II. Aligning with Company Culture

Understanding and aligning with the company’s culture is crucial. They must quickly adapt while driving necessary changes.

Conclusion

An Interim CFO plays a critical role in stabilizing and steering a company during transitional periods. Their first 90 days are focused on assessing the financial health, implementing immediate changes, and setting a long-term strategy.

At CE Interim, we specialize in providing experienced Interim CFOs who deliver results when you need them the most. If your business is navigating a critical phase, consider the strategic advantage an Interim CFO can offer.