As a business owner, you are faced with many options. If you are in start-up mode, you throw in just about everything in your business, from bookkeeping to sales, from rainwater management to employee management, and maybe a little HR, just to keep things interesting.

Let's take a look and see the ins and outs of appointing the Chief Financial Officer (CFO) for your company.

A task most often overlooked in a small business, especially in the start-up phase, is making sure that your financial home is in order. This does not just mean hiring an accountant or accountant. This means being an experienced financial professional, looking at your "big picture" goals and intended outcomes for the company from a financial perspective.

So, the magic question is: "Should I appoint a CFO, or is it better to bring in an outsourced interim CFO?" This is not always an easy answer. You may also ask yourself "What is an outsourced interim CFO anyway?"

Many start-ups decide that hiring a CFO from the beginning is a great way to help them navigate their financial path. Ultimately, it makes perfect sense to get your CFO quickly so that you can capitalize on their expertise, provide strategic financial information, and make projections, budgets, and cash flow forecasts.

But in many cases, hiring a CFO may not be the best fit for your company, at least in the early stages and here are some reasons:

• Your company is still refining it direction, so it may be too soon to make someone a "captain of the financial ship".
• The CFO may not see eye-to-eye with your objectives as the owner or entrepreneur starting the company.
• Transfer can take months (or longer) through resumes or interactions with executive search firms, just to find some potential candidates that may or may not be the right fit for you.
• Many CFO candidates are not ready to brave the uncertainty of a start-up company.

So what is the answer?

The simple answer may be to hire an outsourced CFO.

Here are several advantages of using this potentially powerful strategy:

• Have someone in your team with experience and expertise to organize and track your financial plan.
• Interim CFOs are more motivated by doing the necessary tasks in a start-up; Putting those building blocks in place to assure a solid foundation.
• They are trained in designing accounting and reporting systems that can increase the ability of owners and managers to function and stay on track.
• Interim CFOs have been "around the block" with various professions and have a breadth of knowledge and experience that other candidates may not actually have under their belt.
• They understand the rules, GAAP best practices and how to keep all rights policies and procedures in place from the beginning.
• Interim CFOs like to play the role of "hired guns" ... they come in, they take care of business and then, when you're ready, they move away from the position, while you onboard and transition to your own CFO.

Hiring an interim CFO is significantly less expensive than hiring the wrong "in-house" candidate. You should not make the leap to full-time pay, or negotiate stock options and other perks and benefits that typically go along with keeping an in-house CFO happy and motivated.

There can also be a downside, but the pros far outweigh the cons. For example, management effectiveness may be limited because the interim CFO can be considered an "outsider" or "short-timer" from the point of view of your employees. But a solid candidate for an interim CFO will also have the ability to recruit your team to their vision.

There are always pros and cons to any executive hire, whether internal or outsourced. The biggest advantage of hiring an interim CFO is that it gives you time. Time to set up the system and test your financial methods. Time to organize your vision for the future of your company. And perhaps most importantly, the time you need to make the right long-term decision regarding your ideal CFO candidate.

Making the right choice to hire an external interim CFO can mean the difference between success and stagnation in your business. Look carefully! Visit us International Executive Consulting LLC & hire the best suitable candidate for your business growth.