Published on
February 9, 2023
As a startup grows, the need for a chief financial officer (CFO) becomes more pressing. A CFO is responsible for the overall financial operations of a company, and can play a crucial role in guiding company operations, managing day-to-day finances, budgeting and forecasting, and financial reporting and compliance. But who makes the final decision to hire a CFO, and what factors should be considered?
Who Hires the CFO?
The decision to hire a CFO typically falls to the CEO and the board of directors. The CEO has the final say, but the board will have a significant amount of input as they will want to have a relationship with the CFO. This is important for several reasons, including having access to the inside scoop when things are not going well, ensuring transparency, and having someone else to talk to within the company.
Input from Other Employees
Other employees may also have input into the hiring process. For example, the vice president of finance and the controller, who are responsible for accounting activities, should be consulted as they will be working closely with the CFO. Additionally, staff accountants who create and maintain financial records should be asked for their input as this decision affects their daily work.
How to Hire a CFO for Your Startup
The final decision to hire a CFO will always be made by the CEO, but input from the board and employees who will report to the CFO should be considered. To ensure a successful hiring process, be sure to consider the skills and experience the CFO should have, as well as the company culture and values.
If you have any questions about hiring a CFO for your startup, or need advice on accounting, finance, HR, and tax for startups, don't hesitate to reach out.
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