Hiring a CFO probably wasn’t on your mind, when you first started your business. But as time passes and your company scales, the requirements of your financial department will evolve.
Eventually, your business might need to consider working with a CFO. But what’s the right timing?
Timing is everything when it comes to hiring a CFO.if you wait too long, then your business could end up in a financial crisis.
Be it hiring a full-time employee or using outsourced CFO services for this role, these are the important 10 signs that tell you if your small business needs a CFO.
- Growth & Expansion: Your business is growing rapidly
- Declining Profits: You are noticing unsatisfactory or drop in your profitability
- New Segment: Your business is entering a new market
- Fund Raising: Your business needs to raise capital
- M&A: Mergers & Acquisition of a business
- IPO: Your business is going Public
- Cash Flow Management: Your business is running out of cash due to lack of right cash flow management
- Book Keeping: Your employees are spending too much time managing the books
- Audit: Your company is being Audited by banks or investors etc.
- Financial Reports: Interpreting financial reports is increasingly complex
So, if your business is beginning to exhibit the signs on this list, it’s time to hire a CFO
As your business starts to grow and things change, you need to identify signs that your business needs an executive role in the finance department.
Rather than hiring a full-time CFO, explore hiring an outsourced CFO or interim CFO services is an economical alternative.These sorts of services are growing in popularity, especially for start-up, small and mid-cap firms. It’s an appealing option since you get the resources of an experienced CFO.
Explore your options with CFO Bridge, the largest partner model service provider in India. Operations head-quartered in Mumbai with presence in Mumbai, Bengaluru, Chennai, Pune& New Delhi