Of course, it varies from company to company, but the answers to some fundamental questions may indicate that it is time to hire a CFO.

Is the bill from your accounting firm surpassing the salary for a seasoned financial manager?

Most entrepreneurial businesses turn to accounting firms for everything from taxes to raising capital, at a price tag of at least EUR 150 to 200 per hour, and sometimes much higher. Salaries for a good, experienced CFO vary widely across the EU. Just considering major European capitals, experts say a good financial strategist will cost at least EUR 80 to 100,000 a year. So, simply add your sums. When you’ve reached the point where outsourcing your financial services surpasses the market rate, perhaps it’s time to find your own financial team member.

Do you need to raise equity capital to fund further operations?

According to Deloitte and Touche, one of the world's top accounting firms, if your business wants to go beyond just regular bank loans for funding to the likes of VCs (Venture Capital), private investors, the public markets or anyone else looking for a stake in the company, then it may be time to bring in a full-time financial expert.

Is your company beginning to engage in complicated financial transactions?

While raising capital can certainly get complex, there are other financial factors that can drive an entrepreneur to seek out a full-time financial advisor. Your company may be in the process of acquiring another company. Your business may be starting to set up deals with suppliers or customers, or both, which require financial structuring that demands expertise beyond common sense.

The important thing to remember is: stay focused on essentials, continue to do what you do exceptionally well and delegate responsibilities when you can.

And you? At what point did you hire your CFO? Are you considering a new CFO and why?

Sam Juneau - 12/5/2008