#1 Lack of Analysis — Perhaps the most important indicator that a company is ready for a CFO is when company leadership lacks the analyses needed to make timely business decisions or is taken away from essential revenue-generating activities to handle finance matters.
#2 Growth Rate — A business that is growing at a fast pace (over 20% annually) or a business that has outside investors should consider hiring a CFO. Also, if a company is struggling to grow or is experiencing negative growth, a CFO can be a valuable asset to identify finance issues and turn the company around.
#3 Mergers & Acquisitions — The expertise of a CFO is always recommended if a company is experiencing a complex merger or acquisition. A good CFO is an invaluable asset when managing the M&A process and should provide guidance during due diligence and throughout integration.
#4 Number of Employees — The number of employees in an organization is a good indicator of the complexity of the finance department. Having more employees means more financial responsibilities and requires more detailed analyses for cost control and planning.
#5 Transaction Volume — High transaction volume can be an important indicator of the need for a CFO. When a company handles thousands of transactions per year to generate revenue, it likely needs a CFO.