When and why you should hire a CFO

Expert strategic financial management is central to running a successful company. The question of when to hire a CFO comes down to a few key questions regarding your company’s current position and plans for future growth. Most companies will need a dedicated individual to oversee their finance and accounting function, and as you grow further you will need a leader to analyse and plan future financial strategies.

At Richard Lloyd Accounting Recruitment, we’ve been helping match finance experts and leading companies for years. So, we are well aware of the importance of hiring a CFO. To help answer some of your questions, here’s a guide to the “what, why and when” of CFO recruitment.

What does a CFO do?

A CFO is a senior executive who typically reports to the Chief Executive Officer, Managing Director and the Board. The CFO is the company’s financial leader, responsible for top-level financial reporting, management and executing the organisation's strategy.

A CFO will recruit and lead the finance team which will vary in size depending on your organisation's requirements. They will be responsible for overseeing all financial processes and systems within an organisation. This includes accounting, banking, regulatory reporting, audits, budgeting and managing tax requirements.

Additionally, a CFO is responsible for overall business financial performance and ensuring finance is at the heart of strategy for future growth by undertaking financial analysis, forecasting, risk management and planning. They will monitor and advise on the market and industry changes and oversee the implementation of best practice procedures to ensure the organisation hits its targets.

A core part of the CFO’s role is to ensure the financial performance yields positive results for the company and for your investors.

Why hire a CFO?

Looking at what a CFO does, it’s clear that it’s more involved than just day-to-day accounting – and it utilises a more strategic financial skillset. While hiring an Accountant or Bookkeeper is often the first step when starting a small business, growing your business successfully requires a certain degree of financial leadership.

Once your business reaches a certain size, you’ll need someone to manage the finance team, recommend and implement financial procedures, manage and analyse your financial performance, identify and mitigate financial risks, and make strategic recommendations moving forward.

Why hire a CFO? A CFO has the expertise you need to ensure you meet all your financial obligations and to help your business flourish and grow further.

When to hire a CFO?

So you know what a CFO does – but when should you need to hire a CFO? Whilst looking to the future is essential for business development and growth, it is equally important to assess your company’s current needs.

Are you at a stage in your growth when there is more rigour required around your financial reporting? Are you concerned about risk management or compliance? Does your team need a stronger or more experienced leader? Do you need someone to analyse and deliver financial strategies - or to implement and oversee financial systems? If you answered yes to at least one of these, there’s a good chance your company would benefit from hiring a CFO.

Another indicator to look out for is if your company is expanding or making plans to expand in the near future. If you’re looking to grow your business organically or via acquisition, then a CFO can provide the analysis and financial advice to help mitigate any risks and improve the outcomes of this process.

Matching CFOs to growing businesses

It’s important that every business owner knows why and when to hire a CFO, as recruiting a skilled financial leader at the right time will help you stay ahead of the game.

Richard Lloyd Accounting Recruitment excels at matching expert candidates with exceptional businesses. We know the right match is about more than just skill and expertise, and we’re here to answer any additional questions you may have about when and why you should hire a CFO.

If you are looking to hire a Chief Financial Officer, we’re here to help. Contact the Richard Lloyd Recruitment team to speak to one of our experts.