The CFO'S Perspective

When your business gets to the point where it needs to hire a CFO, what are your options?

• Full-time In-house
• Interim Outsourced, virtual or in-house
• Fractional Outsourced, virtual or in-house

These days a lot of organizations are looking to hire virtually, which makes “hiring a virtual CFO” a hot topic. Amidst all the remote work buzz it is easy to lose your focus and forget what you were trying to accomplish in the first place by outsourcing the role.

Ever wonder why your CFO spends more time in their office than anywhere else? Or maybe you have a CFO who is always out meeting with people outside your business when you are trying to talk with them about an issue? Do you have a Controller who feels ignored by your CFO?  Do you have a CFO who is great at talking about the needs of your business, but can’t seem to answer a detailed question about the financial statements?

In my years as a CPA/auditor, an employee within companies in finance management roles, and as a recruiter focusing on senior finance positions, it is very apparent one can put a CFO in three categories.

Of course, not everyone is a single variety grape wine, most people are a blend, but I have found these three categories quickly summarize the most common types of CFO in the eyes of the CEO and others in an organization. 

The question as a CEO or business owner is, do you have the right type for your organization?

Repeat after me…

Accounting is a team sport."  

This has been my mantra for the past 30 years and it’s as important and true now as it was 30 years ago.  What I have learned in my 30+ years as a CFO is that accounting works best when it is integrated with the management team and you will never be at your best if your accounting team works in a silo.    

The employees in your company's office can make or break the business. They are often on the front line delivering customer service or managing critical information. Hiring highly talented and skilled individuals who will fit well into a company culture can seem almost ‘impossible’. When short staffed or during rapid growth, it may be tempting to hire almost ‘anyone’ as quickly as possible. This is usually a mistake because of the extra costs of carrying ‘dead wood’ on the payroll. The good news is that many office and administrative support occupations often require only a high school diploma with some specialized skills to qualify.

The value of working with a bookkeeper is undisputed; bookkeepers are professionals at managing the day-to-day financial transactions of business, providing the business owner with the information necessary to make sound financial decisions for the future. What’s more, there is no doubt that regardless of the type of business that you operate, bookkeeping and accounting services are invaluable, and essential for efficient operation.

When it comes to sports teams, the coaches have a pretty solid picture of what they need for success. A baseball team needs nine players on the field, soccer eleven, and basketball five. But when it comes to the workplace, there is no hard and fast rule for determining the perfect number of roles for your team.

Whether you are a growing startup, or an established business, your company's products and services are only one part of the success equation. How you structure your organization can make the difference between long-term failure and success.

Here are some tips for planning organizational structure, how you can evaluate your current organization, and one way to make the most out of your team going forward.

Why do we need a CFO?

The right CFO in place will optimize the returns of your organization’s activities by carefully managing all aspects of your finances.

The CFO role is strategic by nature, creating budgets, analyzing financial statements, and strategically interpreting the data. They provide an active partner to the Executive Director (ED) and bring a forward-looking and proactive stance to managing the organization’s finances.

Whether an organization begins to spiral downward or have high-speed growth, a CFO might be needed to help you respond when decisions are required in a quickly changing financial landscape.

When an Executive Director becomes burdened with too many hats, it limits opportunities.  With a CFO in place, an Executive Director can feel empowered because they have a financial executive who knows how to solve problems and run the organization financially.

The right CFO will bring clarity when you lack detailed financial analysis that is critical to making sound business decisions.

Your CFO has been a part of your organization for many years and is now planning to retire. You have the great fortune to have CFO Selections help you find an outstanding replacement with CFO executive search services or CFO consulting services.