Hiring a CFO is a big decision. CFOs can have a profound impact on your company. However, a CFO also adds to your overhead costs. If you’re hiring an in-house CFO, you will have to pay for the recruitment process, salary, training, benefits and many other costs associated with a new employee.
Before you hire, you’ll want to make sure your business can benefit from a CFO and actually requires one.
When Should You Hire a CFO?
Hiring a CFO is not a numbers game. There is no pre-determined revenue level or sales quota you can reach that will determine whether you require one of these professionals. Your need for a CFO will depend on your business needs — not on financial numbers. In general, you should hire a CFO if:
- You’re falling behind in gathering and interpreting data, and this is costing you the ability to make effective decisions
- You’re struggling to implement cost control measures effectively
- You’re not sure how to make the best financial decisions and strategic decisions for your business
- You need assistance with capital acquisition
- You need a professional to help you with economic, government, social, tax and industry-based forward-thinking ideas and decisions
- You need to start thinking about innovation more fully
- You need more help with strategic thinking and planning
- Your financial responsibilities exceed your abilities
Should I Hire a CFO?
Before you hire a CFO, you may need to hire bookkeeper to take care of the basic books and pay the bills. Eventually, your business may grow to the point where you may need an accountant to help you master financial statements and help you with every day financial tasks. An accountant can also create a financial system for your business. When you need to go a step beyond that and start thinking strategically and financially, a CFO may be your best option.
It’s important to keep in mind you don’t automatically have to hire a CFO full-time. In fact, if you’ve just come to the realization you need a professional like this, outsourcing your CFO can be a very cost-effective solution. Without having to pay for recruitment, training, full-time salary and other costs associated with another employee, an outsourced CFO can offer you the professional support and the advice you need to take your company to the next level.
If you’d like outsourced CFO services, contact SLC Bookkeeping. Our outsourced bookkeeping, business consulting, strategic planning and financial forecasting solutions can give you robust financial support without the high price tag of another full-time employee.
