As a purpose based executive search firm, Y Scouts often helps companies hire a chief financial officer. But how do you know when to hire a CFO for your company?
Timing is an important part of any business transaction, and hiring a new executive is no different. Here are five signs that can help you determine when to hire a CFO:
1. Your company has experienced a lot of growth in a short time.
If your business has just had a sharp increase in revenue, your financial situation is going to change drastically. Similarly, if your business just acquired many new employees in a short period of time, someone needs to make budget adjustments to ensure everyone gets their paycheck. A CFO can guide your company through a transition period and prevent finances from growing out of control.
2. Your company is going public.
Taking the leap to become a publicly traded company requires careful financial planning. Whoever is in charge of your company’s finances must be able to set your business up for the best possible IPO in order to ensure your future success. The expertise of a chief financial officer can be a huge asset when your business is taking this step forward.
3. You’re acquiring or merging with other companies.
A merger or an acquisition can change your company’s finances very quickly. A merger or acquisition might be a good time to hire a CFO in order to accommodate these quick changes and keep your company’s finances on track.
4. Your business is going through an audit.
Whether the government is auditing your business or you’re undergoing an audit for internal purposes, hiring a CFO can help you through the process. They will be able to use their experience to double check that your business’ finances are in order before the process begins, which could keep problems from arising.
5. Working with your finances has become too much for you to handle.
If you don’t have a whole lot of experience dealing with corporate finance, it won’t be long before fulfilling the duties of a CFO becomes overwhelming. Don’t stretch yourself too thin by trying to wear multiple hats when you aren’t qualified to do so. Hiring a chief financial officer could alleviate your stress and give you more time to work on projects that utilize your skill set.
How did you determine when to hire a CFO for your business? Let us know in the comments.
Y Scouts is a purpose-based, performance-proven leadership search and development firm focused on transforming how people and organizations connect to work that matters. When you’re ready to hire a new leader, Contact Y Scouts. If you are looking for your next leadership role within a purpose-driven, performance-focused organization, please join the Y Scouts Leadership Community.
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