How to Determine If It’s Time to Hire A CFO?
While running your business you never understood that it has grown so much! Yea, it’s good news but when it is growing you have certain responsibilities growing towards your investors too. Do you recognize them and understand that how important it is for your business to meet those responsibilities?
What can be the solution? Hiring a CFO who will analyze the financial statements and help you take further decisions? You could have done that earlier then why didn’t you do that?
It’s mainly because hiring a CFO is costly affair and being the owner of the business you yourself can manage the finances best. Then, today how do you understand that whether it’s the right time to hire a CFO?
Here are the signs mentioned by Maureen O’Connell, Scholastic on her blog and if you notice them in your business, it’s time that you think of including a CFO in your finance team. Your internal accountant needs a help.
Even external consultants are not helpful
You have hired a lot of consultant so that they can guide you internal team in running the business. However, you can notice that things are not working out. This may be due to the consultants are not aware of your strategy and everybody is working on their own.
Having a CFO at this point is helpful as he will be the perfect guide for the entire consultant. He can explain the direction in which your business wants to grow. They will communicate with your CFO and he will strategize things out. You will find that things are streamlining.
Managing the Tax Compliance
As your business is growing you will have to maintain more and more compliance. The number of transactions increases every day and so the compliances. It is becoming tough to manage everything and a small mistake can levy huge amount of fines on your business.
Hire a CFO who will make and administer a system that will help your business manage the taxes smoothly and follow the compliances properly.
Concerned about management
While running the business you have to manage risk, investors and many others things. There are other professionals in the business but they are not responsible for all this. Rather they will concentrate on the growth of the business.
Then who will manage all this? The CFO, who will assess the risk and plan out timely solutions. At the same time, they will manage your investors by providing them data and information of the growth of your business.