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Important for Young Companies to Hire Experienced CFO

Important for Young Companies to Hire Experienced CFO

The role of the CFO has taken on so many new responsibilities that it has become exceedingly clear that even burgeoning companies should invest in a highly experience finance chief at an early stage.

In a recent Business Insider column, Firas Raouf, a partner at OpenView Venture Partners, points out that some of the most successful developing companies he has dealt with are those that have tapped a veteran finance chief.

From basic accounting operations to ensuring that the company is in compliance with federal regulations, the CFO is often instrumental in transforming a fledgling company into a rapidly expanding enterprise, Raouf notes.

Forbes reports the most effective CFOs for startups and sprouting businesses are those who strive to complete the "best" possible plan, rather than simply moving forward with the most "predictable" goals.

Additionally, the publication notes these finance chiefs should also recalculate financial forecasts on a quarter-to-quarter basis to ensure that the company is always looking to capitalize on momentum and continue to grow.