Signs you are ready to hire a CFO:
It would be logical to think the more revenue a company has, the more likely they need a bookkeeper/CFO to handle their finances. However, a company generating millions of dollars but only selling a few units a year could not be in need of someone managing their books whereas a company generating thousands of dollars but has hundreds or thousands of sales/expenses could need one ASAP. Here are some signs your company is ready:
- When information you need to make a timely decision is not readily available or regularly being prepared.
- You are experiencing rapid growth.
- You do not have a qualified person handling the management of your company.
- The amount of time it takes you to generate your financials is painful and your accountant is always asking for more information.
Why do I need a CFO?
You didn't start your business or become the head of an organization because you are a financial expert. You are there to grow and succeed. The accounting, bookkeeping and financial aspects of your business are important to how you run your company, but it is time consuming and if not done properly, can lead to more headaches down the road.
Keeping track of your bookkeeping and your financial statements is time consuming and difficult to manage. But most frustrating is understanding and interpreting your financial picture from reports. CFOs are responsible for timely and accurate presentations and financial reports in order to capitalize on your growth.