Choosing a CFO

When your business starts to take off, you may find that just having an accountant isn't enough. You may also find that your ideas are good, but you need another mind working too. When your business comes to this point, it is time to consider a Chief Financial Officer, better known as a CFO.

The basic duties of a CFO are to take care of the money side of your business, but that isn't a small matter. They are in charge of knowing where all of the money is when it goes out, what to do with the money that comes in, and planning for the financial future of the business. Very typically the CFO will be part of the company's board of directors.

When you are looking for a CFO there are a few qualities to consider. There are things that you will find are necessary that are specific to your business, this means that you need to make sure you are doing your homework, the right person is out there, you just have to find them.

It all starts with talking with all of the people that have a say in the business. If you are the sole proprietor then you can make the decision on your own, but any investors or others that have a financial part in the business need to be in on the decision board.

Work out with everyone what you are able and willing to pay a CFO. Look at the market and see what would be competitive and go from there. When that decision has been made then you are ready to move forward.

The next decision is whether you need a CFO that is full time for your business or if you would be alright to outsource for a part time CFO. It will all be dependent on the pay that you decided and how much responsibility you are going to give the new CFO. For small and medium businesses they are usually just fine without a full time CFO.

When you advertise, a local newspaper isn't going to get you the response you need. To find the right people it is a great idea to use the internet and larger sources like it to find just the right person. Make sure that you specify the qualities you are looking for.

Some CFOs are also CPA (certified public accountants) and some have an MBA, but neither is required. That is, unless you decide that is one of the qualifications for your CFO. Their knowledge and education will differ depending on what you need them to fulfill for your business.

Take a good look at their background. You need to know what experience they have had and where they have worked before. Look at their track record, if they used to work for a company that lost a struggle with finances, then they might not be who you are looking for. If they have gone into a company that was loosing a battle with finances and brought them back up, then they are probably pretty good at their job.

A good knowledge about your specific type of business is a good idea as well, but if you find the right person and they don't know much about your business, then it is worth your time to teach them. Don't pass up someone that you (and the other board members) feel good about just because they don't know much about your business.

Remember that your instincts are there to protect you, if you have a bad feeling about an applicant or a really good feeling, you have a good chance of being right. Make sure that you listen to your heart as well as your head when choosing a CFO.

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