Having knowledge in the area in which your company operates is a decisive factor for the business to be able to establish itself in the market, but it is not the only thing. The way the business is managed also makes a difference. Therefore, when the issue is money control, nothing better than having someone who really understands this: the financial Director .  

Known today, also, by the acronym CFO ( Chief Financial Officer ), he is responsible for providing the owner and executives with a broad vision of the financial health of the business. Finally, according to Scott Gerber, founder and CEO of YEC, he is the one who will be connected with issues such as cash flow control and the definition of strategies for attracting resources and projection of growth.

When is it necessary to hire a financial Director

With the importance that the financial manager has within a company, ideally it is present from the beginning , to define the actions that will generate one growth more efficient . When this is not an alternative, the advice of José Manuel García López, specialist in organizational behavior and professor at the Universidad del Istmo, in Mexico, is to pay attention to the signs of the work routine to know when is the right time to hire an executive responsible for the sector.

The main signal comes when the business manager does not have enough time to pay the necessary attention to their specific functions. Finally, taking care of finances requires time and dedication and the costs of an erroneous management sooner or later have an impact on the results.

Another alternative is to have an external consultant , who performs specific work for the company. In this case, López advises that it is necessary to do the math and consider whether the value is not even higher than the salary of a permanent manager.

The ideal profile of the financial manager

Defining the characteristics of a CFO depends on the mode of action of each company. In other words, it is important that the financial manager has experience in the business model he is going to handle, so that he understands your market logic.

“Also, look for other qualities that candidates can offer. For example, if your business needs to raise capital in the next 12 months, it is ideal that your candidate has experience in the area or in a network of investors ", exemplifies Gerber.

Likewise, López advises that not only the degree and previous actions of the professional be analyzed, but also the characteristics connected to his personality, such as character and leadership capacity . Finally, some requirements may not be essential, but they are desirable for a more complete experience.

By choosing the right person, the results are the optimization of resources , meticulous control of expenses and a strategic vision to make investments with excess money and project the future of the company. In many cases, this person knows the business even better than the manager himself.