AccountingBookkeepingSmall Business & Startups

Is it time to hire a CFO?

By November 1, 2018 No Comments

hire a CFOAs an entrepreneur, you’ll wear many hats.

In the beginning, you may be CEO, sales, and marketing all rolled into one. When you’re just starting out, this makes sense because you can’t afford to bring on other people. But as your business progresses you may find yourself struggling to do it all — that’s how you know you need to seek outside guidance to keep moving forward.

When it comes to moving into the future, it’s always better to be aware of where your financial strategy and focus should be, and that’s why a CFO during rapid growth phases can be an invaluable asset to your company. With a trusted, experienced advisor, you can rest easy knowing that the right person is keeping track of where your business is going. So whether you’re considering hiring a CFO or your business is wanting to focus more on the future, this blog is here to show you how a CFO can help.

Understanding What a CFO Does

CFOs play an integral role in understanding a company’s current and future financial situation. They see the bigger picture and can provide insight into strategy, efficiency, productivity, and growth potential. From acquiring loans and investments to determining budgets, they’re responsible for steering the company’s fiscal boat in the right direction.

A CFO is also capable of overseeing cash flow, building an efficient and well-controlled accounting infrastructure, and creating forward-looking projections for your business. By performing these functions, they have an intuitive ability to make a more informed decision on new hires, pursuing financing, and expanding your product offerings, so that you know you’re always moving in the right direction.

Knowing When You Need a CFO

You may not know when the time is right to hire a CFO. After all, there isn’t just one tell-tale sign that works for everyone, but there are a few indicators that work.

Have you looked at revenue benchmarks? If you’re hitting certain volume thresholds, that might be a good indication that it’s time to seek outside help. Or perhaps you’ve found yourself struggling to answer questions about your business finances? That can be another way to know if your company would benefit from a dedicated CFO.

If you’re constantly experiencing difficulty when faced with making a strategic or financial decision, it’s time to bring on additional help. A CFO can be a valuable asset for fixing problem areas like cash flow and long-term financial strategy.

Hiring A CFO: Part-time or Full-time?

So you’ve decided to hire a CFO — now what?

When it comes to cost, a part-time CFO is the best choice for a small to mid-sized company that has yet to reach a certain level of revenue. With our fractional CFO offerings, we provide the CFO services you need only as you need them — that way you’re never spending time and money on resources when you’re not using them.

Once the position grows (think 20 or more hours per week), you should consider hiring a CFO in-house. If you’ve been working with an Acuity CFO on a part-time basis, we’re always happy to help you transition to a full-time employee with a timetable that works best for you.

It’s always important to have an accurate understanding of where your company stands financially, especially as you scale. From hiring a bookkeeper to a CFO, make sure you’re doing what you can to help your business flourish. Whether you decide to go the outsourced route or bring someone in-house, you’re taking a step in the right direction towards growth and financial freedom.

Ready to learn about our CFO resources? Let’s talk. We’d love to grow with you.