Journal

When to Hire A CFO

From The New York Times, When Should a Small Business Hire a Chief Financial Officer?:

Generally, as start-ups grow, they hire outside accounting firms. Often, the accountants handle only the taxes and maybe the payroll. If the company continues to grow, and its financial reporting requirements become more complex, the chief executive might decide to bring on a full-time controller who can take charge of maintaining the business’s general ledger and bank accounts. On the other hand, the decision to bring on a finance chief is often tied to strategic decisions, like performing competitive market analysis, raising capital or securing credit.

Overall, this article is good in that it promotes the need for small businesses to get serious about the accounting function of their business, a function that is often ignored or often demoted down the priority list. The problem is that most small business need a controller before they need a CFO.

(Hat Tip: @deepskyco)