Extensive financial leadership is perhaps one of the most important facets of any successful business. CFOs (Chief Financial Officers) work hand in hand with senior-level executives to keep the financial health of the business stable. By tending to cost reduction, increasing financial efficiency, and leading a business to financial growth opportunities, these experts are no doubt valuable. Nevertheless, when a company decides to hire for CFOs, the process looks daunting.
Is My Business Ready to Hire for CFOs?
Most experts recommend hiring a CFO when revenues reach somewhere between $25 and $50 million or the business is growing revenue at a rate of 50 percent or more. However, there really are no hard and fast rules for when a company needs a CFO. It has grown increasingly common for even startups to hire a CFO before the company even launches because the professional supports financial stability from the beginning.
The CFO is an executive-level financial expert, oftentimes with an extensive background in the executive-finance space. This individual steps into a business and performs invaluable duties, such as:
- Monitoring cash flow
- Analysis and review of ongoing accounting practices
- Analyzing financial metrics and data
- Providing strategic financial guidance to help the business maintain stable growth
In some cases, a company needs this level of guidance long-term, but CFOs can also be outsourced or fractional.
What’s the Difference? | Fractional CFOs vs Full-Time CFOs
A full-time CFO is hired by the company and is employed by your business directly for the foreseeable future. However, fractional CFOs for hire either work through a third-party service or on some contracted basis. Some companies hire a Fractional CFO for temporary needs, such as merging with another company or sorting through complex financial objectives. Once the project is complete, the outsourced CFO moves on. Others may need a fractional CFO on an interim basis, or until a full-time role is filled.
4 Tips for Finding the Best CFOs for Hire
According to the most recent data provided by the US Bureau of Labor Statistics, the projected need for CFOs is going to grow through 2030 at a rate of 17 percent. Whether fractional or full-time, CFOs for hire are in higher demand, so how should a business go about finding the best candidate? Here are four important tips to consider along the way.
1. Identify | What are the Business Needs From a CFO
Each company has its own way of doing things, company culture, and specific goals and needs when it comes to finance. Therefore, what a business needs from a CFO can also vary. The most important thing to do when you’re considering CFOs for hire is to establish exactly what it is the company needs from this financial strategist and executive. For example, a business may be looking for:
- Infrastructure that supports financial growth for the future
- Assistance navigating financials during periods of extreme growth
- Executive oversight of an existing accounting department
- Cost margin and cash flow management improvements
- Assistance with mergers and acquisitions
2. Know the Role | What attributes are in the best CFOs for hire?
Certain attributes are always important to look for when it comes to selecting the professional you need amongst the candidates of CFOs for hire. Beyond the background and industry experience, the best CFOs are:
- Digitally competent and familiar with the latest accounting technology
- Experienced strategists and change agents
- Expert collaborators and delegators
- Skilled with risk analysis and financial forecasting
- Exceptionally detail-oriented in spite of handling multiple ongoing projects at any given time
3. Call on the Experts | Should You Talk to a Recruiting Firm?
A financial executive recruiting firm has experience and understanding of the requirements businesses are looking for when hiring for CFOs. For this reason, trusting an executive recruiting firm to find the best CFOs for hire makes a lot of sense. Essentially, a CFO is given the keys to this unique kingdom, but if that expert is not a good fit for the particular business, a business takes a big blow when the CFO leaves. Time is lost, business financials have already been disclosed to an outsider, and funds allocated to pay for the CFO are lost.
While a CEO or business owner may know what they want from a CFO, conveying those needs and then vetting candidates is both time-consuming and stressful. An executive recruitment firm specializes in scouting for and vetting these C-level experts. They know what skills are most important, how to spot true talent, and which candidates are the best fit for a particular business’s needs. The A Teams Executive Recruiting services can help you find the perfect fit for your team.
4. Prioritize | Which candidates have specific industry experience?
CFOs bring a lot of expertise to the table, and most have similar educational backgrounds and skill sets. However, this doesn’t mean all CFOs are good for all industries. The most suitable CFOs for hire will have experience in the business industry that’s hiring.
For example, a CFO who has worked in a law firm will understand things like billable attorney hours and managing a law firm’s unique cash flow objectives. On the other hand, a CFO for a tech startup would have a grasp of things like securing venture capital in a highly competitive market and a tech business’s vendor relations. Candidates with relative industry experience are a priority when assessing candidates because they offer fitting insight to support the company.
Find CFOs for Hire on Your Own Terms
Need help finding the most suitable CFOs for hire for your business? The A Team makes securing the best candidates easy, whether you are looking for a full-time CFO or a fractional CFO on a temporary basis. Let’s talk.