Saturday, March 9, 2013

What Others Say about Hiring a CFO...and More on Criteria and Other Options

Amy Errett highlights additional criteria for the qualifications for a CFO, and Marie Hollein suggests when a good time would be for bringing a CFO on board.

Read more at this link:

How to Hire a Chief Financial Officer or CFO

However, neither  Errett nor Hollein mention outsourcing the CFO.  Read what Todd Guthrie and Chris Thomajan say about CFO outsourcing at this link:

Should We Use an Outsourced CFO?

Another condition companies should consider in outsourcing the top finance executive for its company is risk.  This CFO has access to highly sensitive and confidential data.  Additionally, outsourcing does not mean full time.  Concerning this, how much can an outsourced CFO do strategically and in the giving of direction when this role serves on a part time basis.  This speaks to commitment to the company's success.

The argument may arise, "We do not have the funds for a full time CFO.  What do we do then?  There are several options left open:

  1. The CEO or President should have adequate financial savvy and acumen for oversight;
  2. Settle for a lower role such as a Controller or Business Manager.  With one of these selections, do deep dives into qualifications during the interview process and be intuitive concerning the best interest of the company;
  3. Consider your industry and the knowledge required for a finance manager for that industry.  Be wary of a prospect whose experience is in services if you are a manufacturing company.
  4. Consider a sound firm rather than an individual wanting a gig.  What is that person's availability, and does the prospect have an alternative if he or she is not available at certain times?
  5. Prepare a checklist of functions, processes, and procedures first prior to any interview
  6. Consider consulting with your Board of Directors;
  7. Consider someone as a sounding board or in an advisory capacity whose breadth and depth is in financial statements review and interpretation, month end close processes, staff training in accounting, cost accounting, the control environment, audit, and planning;
  8. Write out a contract and non-disclosure agreement.  The contract should outline your requirements and the qualifications you seek.  Both documents should be tightly written with legal consultation;
  9. Do your research on the role of a CFO or related financial roles in a company.  Your research should heavily influence your contractual and non-disclosure agreements;
  10. Consider best fit for your business.

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