3 Questions to ask before engaging an External CFO

I was talking to a prospective new client the other day, her small business had recently started to boom and she was feeling frustrated that she was spending so much time working in her business rather than on it.

She had turned to me for help to manage her accounting function but admitted although she needed someone to get in and help today, she really didn’t know how to select the right person for her business.

I shared with her that the goal of an external CFO is to take this burden off business owners’ hands, to free them up to work on their business – however it is also vitally important to find the right external CFO for your business needs and future growth plans.

Richard Branson said it best when he said: “If you get the right mix of people working for your company, it will have a far greater chance of success”

Here are three important questions to ask before engaging an external CFO:

Question 1 | Where and how do you work?

Some external CFO’s are only able to support you remotely, others can tailor solutions to your needs such as working in the office or at your worksites.

Some may have an Australian shop front but send work overseas, not taking into account quality; just a lower hourly rate – risking your business by sending data to countries with substandard privacy legislation.

Question 2 | What industries do you work in?

A good external CFO will be adaptable to different industries however still be able to tell you if your particular industry is outside their scope.

Ask an external CFO for example industries they have worked in and what were the main business challenges?

Question 3 | If my business grows quickly can you still support me?

Hiring an external CFO both for your needs today and in the future is a smart decision – what happens if your business grows rapidly?

Will the CFO still be able to support you for 15, 20 or 25 hours per week?

Is there limitation or cap on how much time they can support you each week?

Finally, another additional question – can you provide me a case study of your work to date?

External CFO’s should be able to provide a case study of recent work so you can get a feel of how they operate and the impact they make.

My name is Justin Hogg and I started Right Source as I am inspired to help others. Ultimately, I measure my success – by my client’s success.  Could your business benefit from a highly skilled and experienced Accountant who provides expert advice, guidance and is happy to “roll-up their sleeves” to get the job done?

To arrange an initial, complimentary discussion, email me justin.hogg@rightsource.com.au or call 0414 896 696.

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