How To Choose a CFO for Your Small Business
All small businesses can benefit from the knowledge and guidance of a CFO. They report directly to the owner, are responsible for financial reporting, and oversee the accounting team, but how do you know who is the right fit for your business?
We have created a simple checklist to help you get started in your selection of a Chief Financial Officer.
- Do they have experience in your industry? If they have worked in a similar business or industry, odds are they are familiar with the nuances of the reporting that you will need. You can ask for references and do your own research, Google and LinkedIn are great resources.
- Do you like them? While this may seem a bit basic, if you like them you will feel more comfortable asking uncomfortable questions. Those questions may include clarification on something you don’t understand, and when you’re out of your comfort zone, it’s easier to discuss with someone you are comfortable around.
- Do they understand and embrace your core values, mission, and vision for the company? They need to be on board for what is to come and be able to provide insight into the direction you are going or be able to change course as needed.
- Do they understand what you need and can communicate effectively? It is critical that a CFO can interpret your pain points and relay information to you in a way that is easy to understand. A CFO who has brilliant reports on financials that you don’t understand or who doesn’t communicate what actions should be taken next isn’t going to be what you need to grow or scale your business.
A CFO can help you grow your business, navigate unsteady economic conditions, and work on strategic plans based on your vision. Choosing the right one can make all the difference in achieving your goals.