Many things go into running a business; chief among them is making sure the books are in order. That’s why so many businesses turn to fractional CFOs for help.
A fractional CFO can take care of all financial matters for your company, freeing up your time to focus on other essential tasks in your business. But how do you know if you’re hiring the right one? This article will elaborate on the qualities to look for before deciding.
1. Experience
When businesses are looking to hire a fractional CFO, experience is an essential quality to consider. CFO services can be complex, and it takes a CFO with experience to provide the level of service that businesses need.
A CFO with experience knows how to interpret financial data and make recommendations accordingly. They also understand the tax implications of various financial decisions and can help businesses minimize their tax liability.
In addition, a CFO with experience can provide valuable insights into cash flow management and other financial planning strategies. As a result, businesses hiring a fractional CFO should look for candidates with the necessary experience to provide the level of service required.
2. Transparency
Transparency is an essential quality to look for when hiring a fractional CFO. A CFO provides financial expertise and oversight to help a company manage its money effectively. Transparency in a CFO means that they are willing to share information and be open about their strategies and decisions. It allows you to see how your CFO thinks and approaches their work. It also allows you to hold them accountable for their actions.
A CFO who is not transparent may be hiding something or be unwilling to share information that could be helpful to you. Therefore, transparency is an essential quality to look for when hiring a fractional CFO.
3. Affordability
When it comes to financial decision-making for your business, it’s essential to factor in cost. This is especially true when you’re considering hiring a fractional CFO. CFO services can be expensive, and you need to make sure that you’re getting value for your money while minimizing overheads for your business.
One way to tell whether or not a CFO is worth the cost is to look at the individual’s experience and credentials. A CFO with some years of experience in the industry and a proven track record of success is likely more expensive than someone just starting.
However, the experienced CFO will also be more likely to deliver results. Another factor to remember is the scope of the services being offered. A CFO who only provides financial advice may be less expensive than one who manages your business’s day-to-day finances.
Finally, consider what you can realistically afford when making your decision. Hiring a fractional CFO is a significant investment, and you need to make sure that you’re comfortable with the cost before moving forward.
4. Availability
When hiring a fractional CFO, it’s important to consider availability. After all, you want someone who will be available when you need them and can offer the level of service you require. Availability is also important from a cultural perspective. A CFO who is always available may not be able to give you the space and independence you need to grow a business.
Conversely, a CFO who is never available may not be able to provide the level of service you need. The idea is to find a balance that works for you and your business. A fractional CFO who is available when you need them and can offer the level of service you require is ideal.
5. Leadership
Leadership character is an essential quality to look out for when hiring a fractional CFO. Here are three reasons why:
First, a strong leader will be able to provide direction and guidance to the team. They will be able to inspire others to achieve great things and create a positive work environment. A leader with good character will also be someone trustworthy and honest. This is important because you need to be able to rely on your CFO for accurate financial information.
Second, a leader with good character will be fair and just. This means that they will treat everyone on the team equally and fairly, regardless of their position or seniority. This is essential because it creates a sense of trust and respect among team members.
Finally, a leader with good character will be someone who can make tough decisions. This is an essential quality for a CFO because they will often be required to make difficult decisions about the company’s financial future. A leader who can make tough decisions is someone you can trust to act in the company’s best interests.
Final Thought
When hiring a fractional CFO, several qualities should be considered. These include transparency, affordability, availability, and leadership character. Each of these qualities is important in its way and will contribute to the success of your business.
When considering a CFO candidate, keep these qualities in mind. Doing so will help you find the best possible candidate for the job.
