5 signs your business needs a CFO-chief financial officer

Is this what your company is experiencing today?

Your startup has now scaled to a $5M annual revenues. Your company is growing at a pace of 15-25% a year. Your product line or service offering is expanding. Your employee headcount is now 25-50, you are growing at a fast pace. Your small team of accounting staff is no longer able to handle complexities of accounting and finance. You are busy managing the sales pipeline, working towards your long term company goals but just dont have the right resources to manage your accounting & finance function. Your staff is able to handle all the routine Accounts receivable and payables but you see the need to hire a strategic leader. The resource who can take your finance & accounting department to the next level.

This may be the right time to hire a CFO. How can a CFO help?

  1. Strategy -CFO can help define your company's finance strategy and execute strategic financial goals .
  2. Business Acumen - Its not just finance and accounting. CFO's today have to be great at business. In today’s dynamic fast changing world, you need a CFO who can respond rapidly to changes to internal and external environment while maintaining the balance and not losing the vision
  3. Talent management- Attracting top talent is very important to run a high performing finance organization. As a CFO, he/she should be able to attract the best talent to their company. Also, train their staff to take on higher responsibilities.
  4. Great communicator and sets the tone at the top - Its one of the most important personality traits of a great finance leader.
  5. Knowledgeable of the business general operations and various functional areas- Understanding business operations is very important to ensure all key areas are adequately funded and aligned to strategic goals of the business

While the above are the key responsibilities of a CFO, there are often times situations when you may not require a full time CFO until your revenues are atleast $15-$20 M each year.

In these scenarios, a consulting CFO may be the right choice for you. There are various options available but the best may be to hire a CFO on a regular basis for limited hours until your business is able to hire 1 full time...

Many companies offer part time and consulting CFOs to assist with your business. So, ensure you take an informed decision based on your business situation.

Posted In: Consulting Services

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