You know you need a CFO when business is booming, and your head is spinning with plans for the future, but you lack a trusted financial advisor to ask, “What if…?”
Believe us when we say that to get what you ask for, your CFO job description is an essential first step to getting what you need and want from your finance chief.
inDinero offers fractional bookkeeping, accounting, and CFO services that leverage powerful accounting technology to give you the business insights your growing company needs.
Suffice it to say; we know how to recruit great CFOs. Here are some helpful do’s and don’ts when crafting your CFO job description.
Do ask for the best fit for YOU
As a business owner, you know your company, goals, sector, and what you’re thinking. Is the same true for those around you? Does your HR manager or your executive recruiter understand how you’d define the best fit for your company? For you?
You want a finance executive who knows your industry and has the experience to help you realize your next-level goals. Remember, you also need a CFO that gets YOU.
Do remember that there is no one-size-fits-all CFO
Be it an unmatched financial expert, a growth guru, or a mastermind of operations. What kind of CFO profile (that potent mix of energy, experience, expertise) is best for your company’s stage, sector, and market?
Technical expertise gained by rotating through finance function roles, highly experienced in finance for your industry, have an advanced accounting degree like an MBA in accounting or a Masters in Accounting MAcc. Provides the financial expertise for startups or a decentralized company structure in need of either a) establishing or b) cleaning up the accounting processes.
Operational expertise developed through experience in areas such as operations, management, strategy, and marketing. These CFOs have an MBA degree. They are skilled in communications and leadership. They honed their management skills by rotating through business units within established and larger organizations. This CFO will need to exert personal influence to get things done.
Proven transformational leadership comes from experience in diverse sectors and carries an impressive command of cost management. These CFOs are uniquely capable and successful at achieving aggressive growth goals or managing operating costs with scarce resources.
CFOs with experience in dramatic growth or reshaping of a company portfolio will have a keen strategic mind, proficiency with M&A or divestiture programs, and a healthy network to support their independent decision-making style.
Do accurately describe your current accounting and finance capabilities
If you don’t know your company’s current finance function capabilities, building a CFO job description is the perfect time to identify the gaps your new CFO will need to address.
A CEO experiencing rapid growth, seeking funding, going public, or planning to exit needs a CFO with accounting process expertise or has successfully reshaped a company portfolio. Make room for vision and aspirational goals for this critical role.
Do look for a CFO that knows (your) business
A CFO that knows what you’re asking for sounds amazing, right? The truth is, it’s tricky to figure out whether you and your CFO are simpatico until you’ve already hired them.
inDinero VP of Operations Nicole Wallace, CPA, had this to say about communication in the C-suite:
“CEOs aren’t speaking accounting when they talk about business. A CFO gives quantifiable results to their ‘what if’ scenarios.”
Look for entrepreneurial experience in your future CFO. Also, qualifications, like an MBA, indicate that they speak the language of business. The CFO is the second most crucial executive in your organization, and what they know about your business is critical to its success.
Don’t forget the benefits of being on your company’s team
The compensation package of a CFO is critical to finding the best fit for your organization. The median package (salary, bonus, healthcare, and retirement) for a CFO in the United States is $543,089 (median salary for a CFO is $394,295). As the saying goes, money isn’t everything.
However, compensation isn’t the only benefit that attracts great finance professionals. If your company is changing the industry, make that clear in the company summary and tie transformation into your CFO job description. Maybe you want a CFO to be a finance manager with experience in and passion for leading change. You’ll wish for a CFO with significant industry experience for manufacturing or SaaS companies, but how is working on your team going to benefit them?
Crafting your ideal CFO role is an opportunity to take stock of your organization’s core competencies to determine your CFO’s “must-have” and “should-have” characteristics. Creating a CFO job description is harder than it sounds because it can be difficult for many business owners to identify just what their perfect CFO must have and should have.
Once you gain a clear picture of what you want and what you need in a chief finance officer, you’re ready for the job boards or a head hunter. Next, you might want to look at these 100 questions to ask your prospective CFO. You have to dream up the job description for your company today and tomorrow and evaluate the candidate. A job done well is better than a job well said.
Business growth needs accounting and financial insights that flex and scale with you. Schedule a call with one of inDinero’s growth experts to find the fractional CFO fit that’s just right for your company.
Quick Note: This article is provided for informational purposes only, and is not legal, financial, accounting, or tax advice. You should consult appropriate professionals for advice on your specific situation. inDinero assumes no liability for actions taken in reliance upon the information contained herein.