Hiring CFO, Controller, or outsourced finance?

September 03, 2024

by a searcher from Hillsdale College in New York, NY, USA

Our portfolio companies range from $12-35 million in sales, and we have had pretty bad luck with finance talent. I'm wondering what others have done. Our problem seems to be that we are expecting too much controller work from a CFO or too much CFO work from a controller, and probably not brining in enough outside help when the going gets tough.

How have those of you with larger (>$10 million sales) businesses managed the finance role? Controller? CFO? Outsourcing all finance?

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Reply by a searcher
from University of West Florida in Charleston, SC, USA

Our approach at FAFB, which includes talent from Blackstone, Apollo and Wharton-founded backgrounds, emphasizes the understanding of the challenges of balancing expectations across Accounting and Finance Roles at growing businesses such as yours. We have much experience in playing an integral role as an asset of said business that would feel like a true partnership.
Three factors outline our approach:

1. Clear Role Definition Most businesses struggle in segregating the responsibilities between CFO’s, Controllers and Staff Accountants. The CFO focuses on strategic oversight, capital raising and partnerships whereas the Controller ensures accurate financial reporting and compliance with rules and regulations. The Staff Accountant reports directly to the Controller, handling daily operations.

2. Flexible Support Model A hybrid approach is recommended for businesses between $12 million and $35 million in sales. Consider hiring an experienced Controller or VP of Finance/Accounting to handle the reporting and daily operations.

Hiring a Fractional CFO for higher-level strategy and scalability of the Firm is highly recommended for a number of reasons: - Cost Efficiency - Expertise on Demand - Flexibility and Scalability - Strategic Focus Without Overhead - Access to a Vast Network of Resources 3. Scalable Solutions When workloads spike, we bring in temporary specialists or outsource specific functions, ensuring continuity without overburdening full-time staff.

Reply by a searcher
from The University of Michigan in Ann Arbor, MI, USA

Hello! I work for a company that might be a great solution for you. We offer fractional services so you can get all levels of finance work done efficiently. Our clients typically have a principal CFO supported by an entire team of people providing every level of financial service from pitch decks and investor outreach... to bookkeeping and taxes.... to financial modeling/reporting. This allows our clients to- for example pay for 5 hours for a CFO, 8 for a controller, 10 for a bookkeeper- etc as needed. The goal is to give small and medium sized businesses access to the varied levels of expertise large firms benefit from cost effectively. Some clients have an in house CFO or controller who we support. We have clients around the country. My email is redacted if you want to learn more.

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