As a business owner steering towards growth and success, you’ll inevitably face the question: when is it time to hire a Chief Financial Officer (CFO)? This crucial decision can significantly influence your business’s trajectory. In this post, we’ll explore the role of a CFO, the nuanced difference between a traditional CFO and a fractional CFO, and the strategic timing for bringing one onboard.
At its core, the role of a CFO involves
This high-level executive is not just a number cruncher but a strategic advisor who can steer your business through complex financial landscapes.
Before diving into the timing of hiring a CFO, it’s vital to understand the distinction between a traditional, full-time CFO and a fractional CFO.
The $500k mark is often cited as a turning point for businesses. It’s at this stage that financial complexities begin to intensify, and the need for sophisticated financial oversight becomes paramount. Hiring a fractional CFO at this juncture means you’re placing a premium on strategic financial planning and positioning your business for sustainable growth.
A CFO provides far more than just oversight of your accounts. They bring a strategic eye to your financial operations, engaging in:
Hiring a CFO is an investment in your business’s future. On average, the cost of hiring a fractional CFO ranges from $5,000 to $7,000 per month. This investment can vary based on experience, level of expertise, and the scope work.
Consider Centure Financial. A CFO and financial advisory firm for women, by women. We help female founders strategically expand their business and manage their wealth through strategic financial planning and CFO services.
Deciding when to hire a CFO is a critical strategic decision. As your business approaches the $500k mark, it becomes increasingly important to consider this role. Whether you choose a full-time or fractional CFO, their expertise in financial planning, direction, investment strategies, and potential facilitation of exit strategies can be invaluable in taking your business to the next level.
Remember, investing in a CFO is not just about managing finances; it’s about empowering your business with strategic financial leadership that aligns with your growth and success.
Take a look at Centure Financial’s service suite to see what it looks like to hire a CFO team: CFO & ADVISORY SERVICES
December 14, 2023