Finance functions rarely fail suddenly. They fall behind gradually as a company grows, and the signs are easy to explain away one at a time. Taken together, they usually mean the business has outgrown its current set-up.
- The books are final weeks after month-end. Decisions are taken on numbers that are already out of date.
- Cash surprises. Profitable months still end with a scramble for salaries or GST.
- No budget, or a budget nobody looks at. There is nothing to measure performance against.
- You cannot say which products or customers make money. Growth may be adding volume, not profit.
- Receivables keep stretching. Collections happen when cash runs short, not on a routine.
- Interest, late fees or notices keep appearing. Statutory dates have no single owner.
- One person holds everything. If they are away, nobody knows the position.
- Approvals happen by message. There is no delegation of authority or maker-checker control.
- Bank, investor or auditor questions take weeks. Information exists, but not in a usable form.
- A fund raise, acquisition or exit is on the horizon. Diligence will find whatever has not been fixed.
What to do next
If three or more of these apply, start with a diagnosis rather than a hire: what is broken, what it costs, and what needs to be in place in twelve months. The answer may be a Virtual CFO, senior support for an existing finance head, or a full-time CFO, but the diagnosis comes first.
This guide is general information and is not professional advice. Apply it to your facts with a qualified adviser.