WHAT FINANCE PROFESSIONAL DO YOU NEED IN YOUR BUSINESS?
Today we are talking about the right professionals that you need in your business and the 10 questions to ask when hiring a finance professional.
I know that hiring someone to run through the finances in your business can be a scary and intimidating process because it puts you in a vulnerable position so that’s why it is crucial.
I did create a guide to help you with ensuring you bring the right person on board however let’s get into who these people are and what roles they serve in your business.
There are 4 different financial professionals your business needs and these include:
- Certified Public Accountant
A CPA/accountant is the person who does your taxes.
Unlike other tax professionals, your CPA dives into your personal finances as well and will often offer advice on tax strategy and help you maximize your tax position
You typically will need to meet 2-3 times per year or more frequently depending on your tax situation.
- Bookkeeper
A bookkeeper is someone who keeps your books up to date and compliant.
They handle your daily, weekly, or monthly, transactions, reconcile bank statements and create financial statements.
You should probably be reviewing your numbers with your bookkeeper monthly or quarterly.
- Chief Financial Officer
Your CFO is responsible for your business’s full financial picture.
They work to implement strategies, create plans to meet your goals (like budgets and forecasts), and help you make data-driven decisions.
This is a person you may communicate with daily, weekly, or monthly depending on the size of the role in your business.
- Financial Planner
A financial planner manages your legacy planning.
They advise and manage your insurance, retirement, investing, and estate planning.
You may typically meet your financial planner on a quarterly basis or more frequently depending on the stage of your legacy planning.
They do offer you clarity and understanding of your financial position.
Despite these roles being distinct, it is at times hard for business owners to find the right person to hire because a lot of people will have multiple of these roles.
Personally, I have done bookkeeping and currently, I am a Chief Financial Officer and I know of CPAs that will also be CFOs or do bookkeeping.
So it is hard to figure out what the person offers and the lines may be blurred however it is good to figure out what your business needs so you bring someone who aligns with what you need.
WHO SHOULD I HIRE FIRST?
When you are starting out, I encourage you to start with just a CPA and that means you are probably doing your books, and then at the end of the year pass that information to your CPA.
Once your numbers are growing and you would like to get an extra pair of hands to help you, a bookkeeper is the second person to bring on board or a CPA with bookkeeping knowledge.
A CFO can then come in to look at your numbers at an in-depth level and how to plan for the future and allow you to achieve your goals.
While your business grows, a financial planner can come in at any stage because they can be of value at both the business and personal levels.
10 QUESTIONS TO ASK WHEN HIRING A FINANCIAL PROFESSIONAL
Majority of times, when you are looking to hire someone, you may speak to a friend or find someone online to bring on board.
As you plan to hire, I’ve scripted 10 questions for you to ask, but always remember to go with your gut and be sure your values match with whomever you are working with. This will make for a much better long-term relationship!
Here are the questions:
- What is your education, experience, and level of expertise?
- Are you familiar with my industry? If so, how?
- What is your scope? Is there anything you don’t offer?
- What software do you have experience with?
- How do you envision your relationship with the other finance professionals in my business?
- How do you communicate with your clients?
- What are your deliverables and timelines?
- How do you protect your clients?
- How do you price?
- Who owns my data?
Are you looking to hire your next financial professional? Well, I have a freebie for you will all this information. It has the 10 questions and the description of the different roles but additionally, it has a temperature check you can do with your current finance person as well as a list of red flags to watch out for.
I hope the freebie coupled with Episode 6 of The Prosper Collective will be helpful to your business, I look forward to continuing the conversation with you via Instagram.
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