As your new business gets off the ground, it’s important to bring on the right person as CFO; this person will be your go-to person for financial-related business matters. With a part-time CFO, you need to be especially sure that the person keeps a close eye on the books when he or she is in the office.
That’s why we asked nine entrepreneurs from Young Entrepreneur Council (YEC) the following question:
Q. What should I look for in a part-time CFO?
1. Financial Modeling Experience
The CFO should have strong financial modeling skills that improve forecasting of the business, which greatly assists the CEO in planning capital allocation. In addition, the CFO should help create a data-driven culture so that strategic decisions can be more informed by sound data analysis. –Nanxi Liu, Enplug
2. The Ability to Be a Partner
Being great at financials, taxes, etc. is just the point of entry for a great part-time CFO. The right candidate needs to have the personality and expertise that lends to being a sounding board, advisor, and partner–not just a CFO who answers your questions about money. Our CFO, Adam Falk, has advised us on everything from when to hire to how to negotiate discounts. –Brittany Hodak, ZinePak
3. An Eye for Every Detail
When I was hiring a part-time CFO, I was looking for someone who was very detail-oriented, who could look at the bigger picture for our company and finances, and who would point things out to me that others I interviewed did not. When a woman I was interviewing showed up with loads of advice and ideas, I knew I had found the person I was searching for. She has been an integral part of my success. –Natalie MacNeil, She Takes on the World
4. Experience with GAAP
Your CFO should be able to set up all of your financial reports and controls using Generally Accepted Accounting Principals (GAAP). GAAP is the common set of accounting principles, standards, and procedures that companies use to compile their financial statements. Adhering to GAAP will be necessary should you ever want to raise capital, sell your business, or take your company public. –Kristopher Jones, LSEO.com
5. A Forward-Thinking Mentality
If you are looking for a part-time CFO, you need someone who—besides organizing your finances—can help you build a financial structure that allows you to grow and move from a startup to a more established company. –Alfredo Atanacio, Uassist.ME
6. Ability to Offer Financial Analysis
A primary role of a CFO is to offer financial analysis versus financial reporting. The difference here is key. Financial reporting simply tells you how your business performed during any period of time, but offers little insight into the future–which is where your CFO comes in. Financial analysis offers insights into how you are likely to perform in the future. –Obinna Ekezie, Wakanow.com
7. Leadership and People Management Skills
Even at the part-time level, your CFO will be leading others and managing teams–probably HR at first, finance later. They’ll also be managing your C-team, in a sense, because they’ll be guiding the discussion on how much money to spend and where. For the health of your business, choose someone who knows how to win others and inspire them to work toward shared goals. –Jared Brown, Hubstaff
8. Proactiveness
Since your CFO will not be in your office at all times, you need to make sure that you find a part-time CFO who is proactive and driven to get their work done and be great in their position. Just because they are not full-time doesn’t mean they don’t have to complete all the tasks at hand that any other CFO would handle. Look for individuals who commonly go above and beyond! –Miles Jennings, Recruiter.com
9. Boldness to Put on the Brakes
Many entrepreneurs are hard-charging and vigorously pursuing their passion. Just like your car has a gas pedal and brakes, the CEO is often pushing for the gas to accelerate; it’s the CFO who needs to be the one reaching for the brakes to grow at a slow, more tempered pace. Both roles are vital in avoiding an accident, so look for a CFO who has the boldness to confront you. –David Ciccarelli, Voices.com
The post 9 Qualities to Look For in a Part-Time CFO appeared first on AllBusiness.com.
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