When will my company need a CFO?

Welcome back to another insightful episode of Ask a CFO! 

In this episode, James tackles a question that is often questioned by many founders and CEO: When should I bring in a CFO? We'll explore that as the answer isn't one-size-fits-all.

In the early stages, especially for smaller businesses, outsourcing financial functions is often a smart move, which may involve having a controller, FP&A expert, or a fractional CFO to navigate complex financial issues. However, a full-time CFO may become more essential as the company grows and evolves. These strategic financial leaders are key players, bridging the gap between various departments, such as finance, product, sales, marketing, and operations. 

The timing for transitioning to an internal CFO can vary, but it's usually considered when a company's sales reach a range of 50 to 100 million.

Let's dive right in!

Key takeaways:

• No One-Size-Fits-All Answer: The need for a Chief Financial Officer (CFO) varies depending on a company's stage of growth and individual circumstances.

• Strategic Role of the CFO: A CFO's role goes beyond traditional financial tasks. They play a critical role in strategic decision-making, impacting areas such as profitability, customer service, pricing strategies, and marketing. 

• Timing is Key: While a general guideline suggests considering an internal CFO when a company's sales reach a certain level, the timing for bringing in a CFO should be aligned with the company's unique growth trajectory and needs. 

Send your question to #AskaCFO

Sign up for the free starter membership below for access to free resources and financial tools which are created to support you at every step of your journey.

Click HERE

Connect with us: 

LinkedIn
Twitter
Youtube
Website