If you are the owner of a small business, you may have wondered if the time is ripe to hire a Chief Financial Officer to take the burden of financial planning and forecasting off your shoulders. Check out the presentation by Maureen O'Connell, CFO at Scholastic Corporation.

2. When Should You Hire A CFO
 If you are the owner of a small business, you may have
wondered if the time is ripe to hire a Chief Financial
Officer to take the burden of financial planning and
forecasting off your shoulders. While there is no
universal answer to this question, these 5 indicators
may help you decide.

3. 1. When your Workforce is
large
 When there is a decent-sized employee strength that is
expected to continue expanding
 This refers to any size that is getting overwhelming for
you to handle on your own.
 As a rule of thumb, an organization having over 30 full-time
employees needs a CFO.
 Payrolls, taxation and revenue duties may be offloaded
to him/her.

4. 2) When your Business is
growing rapidly
 If your Business is growing at the rate of over 25% per
year, you need promptness in organizing finances,
analyzing performance and keeping investors updated.
 A CFO can help you respond quickly to the transforming
financial landscape.

5. 3) When You Deal With Big
Data
 Big data essentially refers to data that is too large – in
terms of quantity, variety, complexity or speed – for
traditional processing and that commands newer
methods of processing.
 A CFO is equipped to analyze and interpret big data
and offer recommendations regarding capital, cost,
taxation, etc. so you may make informed decisions

6. 4) When Your Business is
Getting Complex
 As long as you offer one product or service from a
single site to local customers, your finances could be
easy to manage.
 But when you offer dozens of products or services to a
global audience, your operations become more complex
and require the services of a CFO to help you navigate.

7. 5) When You Are Looking at a
Merger or Acquisition
 CFO’s team can accurately target a potential acquisition
and interpret reports issued by the regulatory due
diligence team.
 Not only must he/she balance savings with investment
to boost profitability but also manage financial,
regulatory and environmental risks.

8. Finally…
 If the thought of hiring a full-time CFO, charging a
formidable pay package, causes you discomfort,
consider hiring a part-time one. A “consulting CFO”
could meet with you a couple of times a week and
help you manage your finances. Once you have
established a level of comfort and trust, your
transactions get more complex and his visits
increase, you could consider hiring him full-time.

9. Maureen O'Connell
Maureen O’Connell is the current Executive VP,
CFO and CAO of Scholastic Corporation. When not
working, Maureen loves running, Skiing, Scuba
Diving or Travelling.