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The Bigger Financial Picture – Is it Time to Hire a CFO and Where Should You Look?

The Bigger Financial Picture – Is it Time to Hire a CFO and Where Should You Look?

By Caron_Beesley, Contributor
Published: February 11, 2013

So, your business is growing. While you may or may not have an accountant on hand, what about your bigger financial picture? Is it time to hire a Chief Financial Officer?

More than just a bookkeeper, payroll administrator or keeper of P&L and cash flow statements, a Chief Financial Officer (CFO) can help you plan, model, forecast and make better business decisions. A CFO looks at your business holistically–this includes people, processes and systems–and ensures that together you have accurate financial information to plan for the future.

A CFO will also work with you or your accountant to understand the drivers for business performance. They’ll pick up on signals that might indicate a problem (such as a potential cash flow issue down the line), and help you make informed decisions about reaching your business goals.

Are You Ready for a CFO?

We all have sleepless nights worrying about the direction of our business; when cash flow will take a turn for the better; or where our next higher margin client is coming from. And being a small business owner, wearing all those hats, it isn’t easy to step away from the day-to-day details and look at your business as a whole.

A CFO can help with these worries–and needn’t break the bank in the process.

How to Cost-Effectively Hire a CFO

If your business is growing fast, then you could consider hiring a CFO on a part-time or as-needed basis and start delegating some of that financial angst. Management consulting firms often offer this type of service. If budget really is an issue, consider the volunteer services of SCORE.

SCORE is a nonprofit association dedicated to helping small businesses get off the ground, grow and achieve their goals through education and mentorship. SCORE mentors deliver free, confidential, valuable advice for your business needs across diverse industries and business functions including finance, marketing, operations, technology and more. Connect with a mentor here.  

Not Quite There Yet? Consider an Accountant

If you are still in start-up or growth mode—or feel you’d benefit with the help of someone to take care of your daily financial obligations such as account payables and receivables, payroll, taxes, and make sound judgments to benefit your personal and business finances—then you should really consider hiring an accountant. If you already have one, consider leaning on their services a little more.

An accountant can save you time and clear up much of the confusion that you experience when it comes to managing your finances. This blog offers tips on finding and interviewing potential accountants: How to Find an Accountant Who Can Help Your Small Business over the Long Haul.

About the Author:

Caron_Beesley
Caron Beesley

Contributor

Caron Beesley is a small business owner, a writer, and marketing communications consultant. Caron works with the SBA.gov team to promote essential government resources that help entrepreneurs and small business owners start-up, grow and succeed. Follow Caron on Twitter: @caronbeesley