Finance

Is it Time for a CFO?

Managing financial issues can take a toll on owners. Know when to turn to a pro.
Magazine Contributor
Writer and Author, Specializing in Business and Finance
2 min read

This story appears in the November 2010 issue of . Subscribe »

After five years in business, Zalmi Duchman needed help. On top of trying to grow his food delivery service in the Surfside, Fla., area, he was handling all of the reconciliation, payroll, projections and other financial matters.

Overwhelmed, Duchman decided to hire a chief financial officer in early August. But the decision wasn't easy. "I still don't know when I'll give him the login to my bank information," he says.

Figuring out whether to hire a CFO can be tough, especially because it's not a position that generates revenue, says Ren Carlton, founder of Dynamic Advisory Solutions, a Troy, Mich.-based CFO and business consulting firm, and author of Profitpreneurship--Creating a Business That Produces Outstanding Financial Results. However, an entrepreneur's ineffectiveness at trying to do it all is where a CFO can return on investment.

Are you ready for a CFO? Carlton gives these telltale signs:

  • You're regularly getting financial "surprises" in the form of bank notices, tax penalties, or unusual financial statements.
  • You regularly feel overwhelmed by the financial demands of your business.
  • You're not keeping good records and not tracking expenses because you don't have time to do so.
  • You're not looking at planning, regulatory or tax changes.

As for Duchman, he is committed to working with his CFO for six months. After that, if he has passed off banking and payroll activities to his CFO and identified that he brings value (they have started addressing changes they will make when the healthcare reform bill goes into effect in 2014, for example), Duchman will consider his hire a success. 

More from Entrepreneur

Grow Your Business at Entrepreneur LIVE! Join us on Nov. 16 in Brooklyn, NY, to learn from legends like Danica Patrick and Maria Sharapova, pitch our editors, meet with investors, and potentially walk away with funding!
Register here

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Apply Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.