When the role was introduced as part of the c-level staff, the Chief Financial Officer was simply a company's senior financial manager. Responsible for preparing the financial statements, dealing with banks and investors, planning tax strategy and developing budget forecasts, CFOs were valuable lead technicians in a company's financial landscape.
Over time, however, the role has evolved to include more of the executive-level operations common in the corner offices. Today's CFOs are expected to do big-picture, strategic planning, requiring them to have a better sense for the business as a whole than their more numbers-focused predecessors.
"A great CFO must be a great strategic thinker, strong manager, have a strong business sense and have excellent finance skills," Amy Errett, a serial entrepreneur who has hired several CFOs in her various businesses, told Inc.com. "A CFO's ability to put numbers in a business context is an absolutely essential part of what every business needs to be successful."
To leverage the insight of this new breed of financial executive, your company must be ready to hire a CFO who is as prepared to steer the ship as he or she is an expert in its operation. Finding that perfect candidate can be easier said than done, however, especially considering the way the role has evolved since many current CFOs got their starts. An executive search firm can help, identifying candidates who have the proper level of experience to excel at the executive level.
To help you make sure your candidate is well-suited to take on the expanded CFO role, here are some essential qualities you should screen for before bringing him or her on board:
- Leadership skills: No matter how strong your candidate's accounting acumen, he or she must be able to effectively lead teams and manage people.
- Communication skills: More than ever before, CFOs must be able to present complex information to a board of directors or outside investors without losing them in technical details. This is especially important if your business is considering going public, as the CFO will lead presentations with potential investors and the public.
- Industry experience: While it is not imperative that your CFO has experience in your exact industry, knowledge about the environment into which your business is growing will help inform his or her decisions.
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