Who’s the Boss? Let’s Look at Your Options

by Alex Hart

The CFO-Controller

Generally, only larger privately held companies will hire a CFO-controller. The person in this role usually has a strong accounting background and will more than likely be a certified public accountant (CPA) who may have worked in a large company as a corporate controller or divisional controller.

The strengths of a CFO-controller focus on timely monthly closings and very detailed monthly, quarterly and annual financial reporting. A company with various locations will typically need a CFO-controller as well as a controller or accounting manager at each location.

Depending on the reporting requirements of outside lenders or investors, companies at this level will often require audited financial statements. The CFO-controller will have experience in the independent-audit process and is capable of delivering a financial package and interfacing with external accountants during the audit process. For companies looking to go public, this type of CFO should have experience in U.S. Securities and Exchange Commission (SEC) reporting and prior experience with the initial public offering (IPO) process.

The Right Type of CFO

The type of CFO candidate best suited for a particular company will depend upon the life-cycle stage of the company, whether it’s just starting up as a small business or has been established in its industry for years. Sales flow, operational flow and financial flow always need a common set of business processes, and choosing the right type of CFO as outlined in the HVR FlowFirstTM management model will allow the company to maximize cash flow and overall enterprise value.

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