This document discusses when and how to hire a company's first Chief Financial Officer (CFO). It explains that a CFO is needed once a company has raised an Angel or Series A round of funding and outlines different CFO hiring options like full-time, fractional, or interim CFOs. The document also covers typical CFO responsibilities like financial planning and analysis, determining funding needs, and managing key performance indicators and metrics.

1. What You Need to
Know when Hiring
Your First CFO
An introduction to understanding when, how, and what to
expect when hiring your first CFO.
Presented by Adam Jernigan
Founder of Financials OnTap
contactus@financialsontap.co
http://financialsontap.co

2. Financials OnTap is a virtual workforce platform that
matches startups and small to mid-sized businesses
with freelance CFOs, Controllers, and experienced
finance talent for fractional, interim, and project-
based engagements.

3. APPENDIX:
1 ….....................What Does the CFO Do
2 ….....................The Difference Between a CFO & Controller
3 ….....................The Difference Between a Corporate and
Startup CFO
4 ….....................What Key Metrics Does a CFO Measure
5 ….....................When Do I Need to Hire My First CFO
6….....................How to Hire, Compensation & Options in
the Market

4. Common Responsibilities of a CFO
• Establish long-term business goals and plans (3-5 years)
• Analyze the P&L to drive higher growth and profitability
• Build annual operating budgets that support business goals
• Determine funding requirements and uses
• Develop Key Performance Indicators and create live dashboards
• Forecast cash flow needs
• Determine how and where to deploy capital
• Understand and manage the capitalization of the company (the cap
table)

5. CFO vs Controller
A controller role is a natural progression from an accountant, but a
CFO is not necessarily the natural progression from Controller
CFO Controller
Analysis & Reporting Accurate Reporting
Financing & Forecasting Accounting & Reporting
Critical Key Indicators Standard Formats
Planning & Implementing Budgeting
Strategy Tactics
Coach Reporter
Big PictureFocus Reporting Here & Now

6. Burn Rate
Operating
Cash Flow
Current
Ratio
Accounts Payable
Turnover

7. Startup CFO vs Corporate CFO
It’s all about the infrastructure, meaning the processes and
systems that allow the business to scale and reach the next
level. A startup CFO wears many hats, but building a company’s
infrastructure requires rolling up your sleeves and leaving ego
at the door.
Financier Lawyer
Technician Deal Finder & Closer
Operator Systems Administer
Lawyer Advisor
The Startup CFO’s Many Hats

8. A Good CFOs Bag of Tricks
It’s All About the Fundamentals
Metrics
Network
Fundraising
Deals

9. Seed Round Angel Round “A” Round
Advisor
Full-time
Part-time
When Do You
Actually Need
A CFO?

10. The CFO Landscape
Full-time
CFO
Fractional
CFO
Interim
CFO
Turnkey
Back Office
Hiring
Process
Compensation
Benefits Paid
Stage
Risk
$250,000
per year
~$100
per hour
$100 - $200
per hour
$7.5k - $20k
per month
Series A
& Beyond
Seed up to
Series A &
Beyond
HIGH
Cost Prohibitive
LOW
Flexible
MODERATE
Semi -Flexible
Any stage
MODERATE
High cost to
switch
__ __
Series A
& Beyond
Months *Days Weeks Weeks

11. To learn more about Financials OnTap please visit our site
to schedule a free 20 minute consultation or a demo.
How do you charge? Based on a flat hourly rate
What is the hourly rate? $75 - $150 is average
Where are the experts located? Our network is national
What does it cost to get matched with an
expert?
It is free
How do I get started
By submitting a project brief you can get
started in less than 24 hours
Frequently Asked Questions About Financials OnTap