Are you debating whether to hire a chief financial officer for your small business?
If you’re in this situation, there’s no doubt you’re the owner of a thriving business; otherwise, you wouldn’t be contemplating hiring such a high-profile professional who commands an average annual salary of over $300,000.
But then, you’re probably looking around and seeing that most high-performing businesses in your industry have a CFO. Well, there are good reasons to hire a CFO.
Continue reading to learn how this professional will help take your company to the next level:
Prevent Business Failure
Did you know the simple act of hiring a chief financial officer can be all it takes to save your business from impending failure?
You probably know that about 50 percent of businesses will fail within a decade. What you probably don’t know is of these failed businesses, 82 percent will be because they ran into financial problems.
It’s true that financial challenges, be it poor cash flow or mismanagement of working capital, is a leading cause of small business failure in the United States. Hiring a CFO helps ensure your business’s finances are being managed by somebody who understands business finance. By taking the possibility of financial mismanagement out of the picture, you’d have cleared a major challenge off your business’s path.
You Can Have a CFO for Less
The #1 thing that comes to mind when you think of hiring a CFO is the high salary they command. There are no two ways about it: CFOs don’t come cheap.
If you’re running your business on a shoestring budget, you might not be able to afford a CFO. Or is it?
Well, while you might not be able to afford an in-house CFO, it doesn’t mean you can’t get the services of a CFO. These days, there are companies offering virtual CFO services. In fact, the CFO of the future won’t be in-house.
These virtual CFO services are way cheaper, so you don’t have to worry about spending six-figures every year on the salary of an in-house professional.
Dreaming of Taking Your Company Public?
The truth is most small businesses won’t ever need a CFO. At most, they’ll do with an accountant or finance manager.
However, if you dream of taking your company public one day, hiring a CFO isn’t an option; it’s a necessity.
There’s a lot that must happen in order for a company to satisfy the requirements of going public and part of it is having a financial professional who’s also a CPA. Most CFOs typically have this credential.
It’s Time to Hire a CFO
If you didn’t want to hire a CFO because you felt that your business didn’t need one, you now know why it’s necessary to make the hire. What’s more, you don’t need to have an in-house professional if you’re worried about the expenses the business will incur. You can have a virtual CFO.
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