With huge number of businesses emerging every other day, the demand for a CFO or a finance controller for an organisation is also going up. Hiring a CFO is one of the most important decisions a CEO or a Company Founder will ever make for the future of their company. A CFO plays an important role in building financial strategies for a company and it is important to have a chief officer at the right time of your business cycle.
Wondering when to hire a Finance Controller for your business?
Scholastic’s Maureen O’Connell shares a few signs to watch out for-
- The bigger the organisation, the more complex are its financial needs. Hence when your business reaches a certain size- probably $1 million to $5 million in revenue- it is a good time to hire a CFO!
- Another important thing to watch out for is the company headcount or employee count. If your organisation has 30 employees or is heading in that direction, you need a CFO. Once you hire 30 employees or more, certain legal and compliance rules start to kick in which can & should be taken care of by a professional Chief Financing Officer only.
- Another very important signal to look for your is the growth of your organization. If it is a rapidly growing company at a rate of say 15-25% per annum, it might be time to hire a controller of finances to manage your account sheets, profits & losses and devise a strategy for investment ahead.
- If your company has an investor from outside, you should have a CFO from the get-go. If you have money from angel investors, you need to be able to show the government where all the money is going.
The bigger a company gets, the harder it becomes to make the fundamental changes often required of a CFO. Once it becomes apparent that your business is set for success, hire a CFO to help kick-start your plan into action.