What type of CFO do you need? – CFO Consulting Services

When you go to the doctor for your annual check-up, you usually see a family practitioner or generalist. On the other hand, if you suffer from a broken hand, you most likely see an orthopedic surgeon. Similarly, not all CFOs are created equal. Sometimes you need a general practitioner type, and sometimes you need a CFO with specific skills.

These are some of the situations that your company may be facing and the type of CFO that best fits the situation. Just like filling any other key position in your organization, you want to tailor your search for a CFO based on your specific needs and pain points. Here are some situations and the type of CFO skills that would provide the most support.

New Business or Small Business

Part time-CFO

You have successfully launched a new business, and you can call yourself an entrepreneur. You have a passion for a specific product or service, but you may not recognize yet that you need a person to keep you grounded in the business and the upcoming challenges.
A typical CPA may only do your taxes and books on an annual basis. But what you need is someone to guide you and ensure you are following your business plan. In this case, your business may not have the size or funds to hire a full-time CFO. There are many firms and independent consultants that offer part-time CFO solutions. These cover basic solutions -accounting, business planning, budgeting, and taxes. As the name indicates, these firms work on a reduced schedule to minimize cost. For business only needing guidance on a monthly or quarterly basis, this is a viable solution from an experienced individual at a fraction of the cost.

Midsize to large private company

Entrepreneurial and growth experience CFO

Typically, a mature company that has been in business for a few years and has achieved a certain level of maturity. To ensure that the company does not become complacent, it needs a CFO that has an entrepreneurial spirit. Someone that can see far enough on the horizon and help pave the next growth curve. A typical CFO for these companies has a background not only in public companies but also in private companies.

Heavy manufacturing or tech-start up

CFO with VC or Capital raising experience

Heavy manufacturing or Tech start-ups companies usually need large sums of capital to get to their critical mass. In addition to having a CFO that has in-depth knowledge of accounting and finance, this individual has to have a network of contacts in commercial lending and, more importantly, in the Venture Capital area. To be successful at raising capital, the company needs to have a good story about its product/service and a CFO that is a good “story” teller.

Large Public Company

Corporate CFO

Once the company has gone public and as it becomes a Fortune 1000 company, it will need a seasoned CFO. An individual with experience in managing not only the Financial and Accounting obligations but also all of the regulatory and SEC requirements. Very often, this type of CFO has enough expertise to help manage operations and many other support functions such as HR and IT. This CFO has mergers and acquisition experience, corporate treasury, and international experience.

Hiring a CFO

Depending on where your company is heading, you need to plan and decide which type of CFO you need. However, not having one is not the right decision, even for a small business. “Renting” a CFO can be a very healthy option for those small businesses that do require the financial discipline but may not have the budget for a full-time person yet.

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