What is a Part-Time CFO?

In today’s increasingly dynamic business landscape—especially for SMEs, startups, or companies not yet ready to hire a full-time management team—an attractive alternative emerges: a Part-Time Financial Director (FD). This article will comprehensively explain what this position entails, when it is appropriate to use, its duties and responsibilities, and the benefits a company can gain.

Definition and Context: Part-Time Financial Director

Simply put, a Part-Time Financial Director is a senior-level financial professional hired by a company to perform strategic financial functions—but does not work full-time. This means that, instead of being in the office every day, they might be present a few days a week or based on a specific contracted hour schedule.

This concept is highly relevant, especially for organizations seeking high-level financial management expertise without the cost burden and commitment of a full-time executive.

When Does a Company Need a Part-Time Financial Director?

The following conditions are where this solution is suitable:

• Startups still in their early stages and unable to afford a full-time financial director.
• SMEs (Small and Medium Enterprises) aiming to strengthen financial governance, financial reporting, and internal controls but with a more cost-efficient approach.
• Companies undergoing a transition phase, expansion, or financial restructuring and requiring temporary assistance from a financial director.
• Businesses that have basic financial management but need “mentoring” or strategic supervision at the director level—but not every day.

Key Duties & Responsibilities of a Part-Time Financial Director

Although working part-time, their responsibilities remain strategic. Here is a list of common tasks:

• Developing **mid-to-long-term financial strategies**—e.g., cash flow projections, working capital planning.
• Directing the preparation of consolidated financial statements, ensuring compliance with accounting standards and tax regulations.
• Managing financial risk control and treasury (liquidity, assets, debt, exchange rates) to ensure company resilience.
• Building **internal financial control systems**, procedures, financial policies, including budgeting and forecasting.
• Collaborating with the accounting team, internal audit, and **external parties** (consultants, auditors) to ensure transparency and good governance.
• Providing strategic advice to management or business owners on major financial decisions—e.g., expansion, financing, mergers, acquisitions.
• Monitoring and evaluating **financial performance**—e.g., liquidity, solvency, profitability ratios—and providing recommendations for improvement.

Difference: Full-Time vs. Part-Time Financial Director

Here is a brief comparison table:

Benefits of a Part-Time Financial Director for SMEs/Startups

Some specific benefits that can be obtained:

• **Improved quality of financial decision-making**—not just “managing bookkeeping,” but looking toward strategy.
• **Strengthened governance and compliance:** assisting in preparing reports for investors, banks, or external stakeholders.
• **Cost efficiency:** compared to recruiting a full-time financial director, the part-time option offers flexibility and lower cost.
• **Focus on strategic priorities:** avoiding getting “stuck” in operational routines that can be delegated.
• **Scalability:** as the business grows, you can increase hours or convert to a full-time role—but start with a lighter scale.

Challenges to Consider

Although appealing, this option is not without challenges. Some things that need to be ensured:

• Clear contract and working hours: presence, **deliverables**, performance metrics.
• Sufficient access and autonomy: a part-time financial director must still have access to information and strategic decision-making.
• Communication and integration with the internal team: ensure they are not “operating in a vacuum” and are synchronized with daily operations.
• Risk of loyalty and culture: a part-time director might be less “embedded” in the company culture than full-time management—it is important to ensure vision alignment.

Practical Steps to Start

If you are considering recruiting or becoming a part-time financial director, here are the practical steps to follow:

1. **Define the scope of work:** frequency of presence, deliverables, expected outcomes.
2. **Evaluate candidate competency:** experience as a financial director, strategic capability, understanding of local regulations (Indonesia), and your business.
3. **Negotiate the fee and contract structure:** can be based on hours, days per week, or project-based with milestones.
4. **Ensure internal systems and processes are ready:** financial reports, financial dashboards, financial information systems—so the director can work effectively even without daily presence.
5. **Monitoring & evaluation:** set financial KPIs (e.g., improved cash flow, financial ratios, tax compliance) and review them regularly.

The “Part-Time Financial Director” option is a smart solution for companies that want to gain strategic expertise in finance without the burden of a full-time director. With the right requirements, preparation, and expectations, you can achieve significantly better financial management quality—with flexibility and cost efficiency.