What Size Company Needs a CFO?

Hiring a Chief Financial Officer (CFO) is an important decision for any business. But you may be wondering what size company needs a CFO. Considering the size of your business is a pivotal aspect of deciding to hire a CFO or an outsourced CFO to help you keep up with the financial side of the business.

If you run a small business, you may not need a full-time CFO, but you may benefit from the expertise of an outsourced CFO. For medium-to-large businesses, the decision to hire a CFO becomes imperative to the successful operation of the company.

The financial and tax experts at Cook CPA Group are well-versed in the financial operations of businesses big and small. We created this blog post to help you explore when it’s time to hire an outsourced CFO and what you should know before making the decision.

Hiring a CFO for a Small Business

For a small business, hiring an outsourced CFO can provide the financial guidance and advice needed to make informed decisions about your company. While hiring an in-house CFO seems like the conventional next step, consider the cost-saving advantages of hiring an outsourced CFO.

Your small business can benefit from the expertise of an outsourced CFO to create a budget, manage cash flow, and provide financial analysis to help you make the best decisions for your business.

For small businesses, it may be time to hire an outsourced CFO when the business is growing and you can no longer keep up with the finances on your own. An outsourced CFO can help you manage the finances, provide you with financial forecasting for better margins, and help you meet your financial goals.

Quick Tip: Are you a Sacramento-based small business? Check out 18 financial tips we compiled to help small business owners in the Sacramento area plan for a financially successful year.

Hiring a CFO for a Medium-Sized Business

For a medium-sized business, hiring a CFO is an immeasurable asset. While they can help with the more routine tasks like budgeting, cash flow management, and reporting, CFOs can also help with strategic goal setting.

Traditional business models suggest hiring an in-house CFO to help with this role. However, your medium-sized business can benefit from hiring an outsourced CFO to take on these responsibilities without impacting your bottom line.

Hiring an outsourced CFO is an effective way to reduce payroll costs, boost productivity, and efficiently achieve business goals and metrics.

In addition to routine financial management, an outsourced CFO can create financial forecasts and robust reporting to help you set and achieve your financial goals faster. They can also help with mergers and acquisitions, capital raising, financial modeling, and investor relations.

As your business reaches new financial heights, it’s important you carefully monitor for any risks. Hiring an outsourced CFO can help your medium-sized company with risk management and regulatory and tax compliance.

Read more about the importance of financial risk management here.

Hiring a CFO for a Large Business

Hiring an outsourced CFO for a large business is crucial. While most large businesses have a full-time CFO, it may be wise to consider switching to outsourced CFO services.

There are numerous benefits to outsourcing your company’s CFO role, including increased financial focus, the ability to reach financial goals faster, and a critical eye to financial bottlenecks and operational risks that may be overlooked.

While an in-house CFO may be a financial expert, they may not know their way around a tax audit. That’s why we recommend hiring an outsourced CFO who can work cross-functionally to provide you with financial expertise while managing your tax obligations.

Need more reasons to hire an outsourced CFO for your business? Check out five ways an outsourced CFO can save your business money.

At Cook CPA Group, we have decades of experience helping businesses of every size manage their finances and prepare business taxes to maximize savings. Hiring a CFO becomes an essential step in growing your business, no matter the size of your company.

Schedule a free consultation with us today to find out how to hire Cook CPA Group as your company’s outsourced CFO.