In-House CFO

I was on a networking call with an executive coach today.

They asked me whether I'm ever called into a client

Who already has a CFO in place.

My answer was this:

"Not often. But it does happen.

And it can make sense when this is the case:

Sometimes a founder has a CFO

Who is a great accountant or finance person,

But who doesn't have any experience running a company.

They understand what it takes...

• To balance the books

• To run the numbers

• To file your taxes

But they don't have any operator experience,

And so,

They don't have an understanding of how the numbers

Connect to the decisions you need to make as a business owner.

For those folks, it can help to bring in an experienced CFO

Who knows how to connect those dots

And show you the levers you need to pull

To make those numbers

Do what you want them to."

If you have an in-house CFO

(Or Head of Finance)

But you suspect you might need something more,

Here's what I suggest:

The next time they tell you something like,

• "Our numbers are down this quarter!"

or

• "Our expenses really went up this month!"

or

• "The bank just called about our credit line usage!"

Try asking them,

"Okay...

So, what should I do about that?"

And, if they begin to thought partner with you on a holistic solution,

Or if they offer an excellent specialist from their network who can help,

Or if they share successful solution examples from their previous experiences,

Or if they point you to the plan that they're already working on to remedy the issue,

...Chances are, you have an excellent and experienced CFO.

You can probably just step back,

And let them cook.

But if they look at you like a deer in the headlights,

It might be time,

For a second opinion.

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