You've done some careful research and figured out when to hire a CFO for your business.
Timing is an important part of any business transaction and it is no different to hiring a new executive. Here are five signs which can help you identify when to hire a Chief Financial Officer:
In a short time, your company's experienced a lot of growth.
If your business has just experienced a sharp rise in revenue, your financial situation will drastically change. Likewise, if your business has just acquired a lot of new employees in a short time. A CFO will be able to guide your business through a transition period and prevent financial growth from being out of control.
1. Knowledge and Passion for Industry at your Company
Not only does a good Outsourced CFO understand finance-he or she also understands the ins and outs of the industry of your company. If the candidate to the CFO knows and cares about the clients and stakeholders of your company, he or she is more likely to succeed in the position.
2. Expertise in Leadership
As one of the leading executives in your company, the CFO you recruit must be in a position to move the company forward. It is essential for a Chief Financial Officer to be able to effectively lead a team towards specific objectives without causing tension.
3. Fidelity
A top-notch CFO needs to know more than just the financial and accounting skills. As one of the biggest leaders in your company, you will need to rely on them in a number of ways. If times get tough, you need to know your CFO ‘s going to be there to help the business move forward.
When you should hire Part-Time CFO
Your Company Goes Public
It takes careful financial planning to make the leap to become a publicly traded company. Whoever is in charge of the finances of your company must be in a position to set up your business for the best possible IPO to ensure your future success.
You Acquire and/or Merge with Other Firms
A merger or acquisition can very quickly alter the finances of your business. A merger or acquisition could be a good time to hire a CFO to accommodate those swift changes and keep track of the finances of your business.
Your Business Passes an Audit
Whether your business is being audited by the government or you are undergoing an internal audit, hiring a CFO can help through the process. They will be able to use their experience to double check that the finances of your business are in order before the process starts which could prevent problems from arising.
Working with Your Finances is Getting too Much to Handle
Don't stretch too thin by trying to wear multiple hats when you're not qualified to wear them. Hiring a Chief Financial Officer could ease your stress and give you more time to work on projects that make use of your skill set.
