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Chief Concern

It's time to make an executive decision about whether your company needs a CFO.

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This story appears in the April 2003 issue of Entrepreneur. Subscribe »

Managing staff and resources is crucial to any business. The overhead from having superfluous positions can hamstring a business while the market is slow. On the other hand, having too few employees on board can stunt growth when a business starts humming. No areas of business are less immune to these concerns than a financial team, where the company's money meets the road. Does your company have the adequate resources to handle tax planning, capital raising, cash management and all the other financial functions of a company? Or more simply: Is it time for your company to get a CFO?

Human resource experts and accounting firms alike are all clear on the subject: It's an issue to be ignored at a company's peril. "If a business doesn't have the resources to raise capital when it needs to, manage tax situations effectively, or execute increasingly complex accounting issues [such as] revenue recognition, then they could run into some serious problems," explains Calvin L. Hackeman, a partner at Grant Thornton LLP, a large accounting firm in Chicago that serves both small and midsized businesses.

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