Posted on September 6th, 2016
For countless small business owners, finding the right balance between managing day-to-day operations and developing long-term business strategies can be particularly challenging. Without the expertise of creating financial projections and implementing strategies for achieving them, many may find themselves facing stagnant growth or grappling with inefficient processes. While it would be ideal to manage this aspect alone, businesses in this phase of growth can often benefit from hiring on a Chief Financial Officer to manage the financial health of your organization from an executive level. Knowing when you need a CFO can be tricky, but it needn’t be.
Given the high cost that comes with attracting a CFO, some businesses may want to postpone hiring an executive level individual. However, the growth and opportunity a CFO can bring make the investment worth consideration. Some of the most common indicators that a company is ready to bring a CFO include:
Exponential Monetary Growth
As a new business, rapid growth is a positive indicator that you need a CFO. Qualified CFOs have expertise to fully examine the overall health of your enterprise and make present important financial decisions to other executives. By regularly interpreting reports and creating financial projections, a CFO can develop and implement the necessary strategies for maintaining sustained growth into the future.
Acquisitions and Mergers
CFOs are able to meticulously choose the right team to execute and evaluate a target acquisitions. Being personable and efficient in their research and able to interpret of complex data makes them a valuable resource for companies preparing to be acquired or in the process of merging with other entities.
In addition to managing complex transactions, a CFO can help identify the long-term risks and liabilities that may stem from any number of business decisions or processes. CFOs have unique insight into the financials of an enterprise and are able to conduct cost control measures, work with bookkeepers to ensure accurate processing of your financial information, and work to retain the level of respect you’ve gained from clients, suppliers, banks, and shareholders.
Learn about your CFO Options with The Accfin Group
Hiring a CFO can help push your enterprise to the next level, guiding future growth. While some business owners may be ready to hire a CFO fulltime, other may find it more financially advantageous to work with a part-time CFO before investing in a fulltime financial manager. At The Accfin Group, our unique outsourced CFO services provides clients with the support of a highly experienced professional without the stress of incorporating an executive salary into your budget. To learn more about this opportunity, contact our firm today