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7 signs your business may need a CFO

Updated: Nov 8, 2023

When does a small- or medium-sized business (SMB) even know whether or not they need a CFO?

For CEOs and Owners of SMBs in the San Francisco Bay Area, hiring decisions are difficult in the best of circumstances. The thought of bringing on a skilled, experienced CFO is often assumed to be beyond the budget realities of a SMB. However, many Owners and CEOs don’t realize that an outsourced, part-time CFO can be extremely budget-friendly with a great ROI as both profitability and cash flow can be dramatically improved.

A recent article highlighted 7 signs that a SMB may need some sort of CFO:

1. Annual revenue

If you’re annual sales are over $1 million and growing, then it’s likely that your business could benefit from some sort of CFO.

2. Annual growth

“If your company is growing by more than 20 to 25 percent each year, then you shouldn’t wait to bring on a CFO.”

3. Product complexity

If your company is selling a variety of products or services to multiple locations and customers, a part-time CFO could be very helpful in improving and optimizing profitability.

4. Employee headcount

In general, the more employees that a company has, the more likely that the Owner or CEO needs a CFO.

5. Company going public

“If you are anticipating that your company is on track to go public, then a CFO can be very beneficial. Audits are required if a company is interested in initial public offerings (IPOs). Look for a CFO with experience in IPOs to help with this process.”

6. Acquisition or merger

M&A activity often requires the experienced-hand of a CFO to help drive and complete the process.

7. Investors or venture capitalist

VC-back startups as well as companies backed by private investors can benefit tremendously with a CFO who can help them with capital-raising as well as investor management.

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