During the early stages of a business, for various reasons, many businesses owners are reluctant to hire a CFO.
However, as your business grows, having proper financial leadership in place well beforehand can be the difference between sustainable and unsustainable growth. A CFO will not only allow you to focus on what you do best, but they will set your business up for future success.
While every business has different financial and accounting needs, there are some clear signs that your business will benefit from a CFO.
4 Signs Your Business Needs a CFO:
Lack of Financial Visibility and Insight
A CFO will make sure your financials are accurate with the business insights that you need. A clear financial picture will help business owners make better and more informed business decisions in real-time.
Non-Finance Employees Doing the Books
Often the task of doing the books and monitoring other accounting processes is delegated to someone in the company who doesn’t have an accounting background. This can lead to errors and disorganized financials, which can be costly down the line when accurate financials need to be produced to potential investors, lenders, or other external parties.
Manual Processes and Systems
Almost all key accounting processes can be automated. If your business is still undertaking manual processes and procedures, it is time to hire financial leadership that has experience implementing the resources needed to automate your accounting operations.
Long Delays to Close the Books
Without the proper oversight and processes, closing out the books can feel like a never-ending task every month. A CFO will implement a month-end close process to ensure the books are closed in a timely matter every month (within 1-2 weeks). Closing the books on time not only reduces internal headaches, but it gives business owners the financial information they need to operate their business effectively.
If you would like to learn how CFOx’s Fractional CFO Services can help your business, please schedule a free consultation via email ([email protected]) or by scheduling a call directly on our website homepage.