The Rea Report Winter 2015 | Page 6

Tips For Hiring The Best Finance Folks For Your Business THIS IS PART ONE OF A FIVE-PART SERIES ABOUT THINGS YOU CAN DO TO REDUCE RISK WITHIN YOUR SMALL BUSINESS. W hether you’re hiring your first chief financial officer (CFO) or for another finance position or you’re looking to replace your current finance folks, the prospect of hiring is probably not too appealing. After all, you’ve got a business to manage. But it’s something that needs to be done. And done right. By Annie Yoder, CPA, CFE, CFF, principal (New Philadelphia office) Why is it so important to find the right people to manage and oversee your company’s finances? Your business depends on it. According to the Association of Certified Fraud Examiners’ (ACFE) 2014 Global Fraud Study, Report to Nations on Occupational Fraud and Abuse, “77 percent of all occupational frauds originated in one of seven organizational departments: accounting, operations, sales, executive/ upper management, customer service, purchasing and finance.” Of those seven departments, your CFO or an employee in a similar role probably manages the majority of those areas. That’s why it’s critical that you find the right person to oversee these areas. HERE ARE SEVEN TIPS THAT WILL HELP YOU FIND YOUR PERFECT IN-HOUSE ACCOUNTING OR FINANCE EMPLOYEE(S): If you’re hiring someone for CFO, define what you are really looking for. Do you know what you’re looking for in your CFO? Do you have a job description that outlines what you want your CFO to do? Do you want this person to oversee and manage just the finance function, or do you want someone to take on a more expanded role where they oversee more than just the finance department? It’s important you know what you’re looking for. Ask lots of questions and listen very closely to how they answer. The more questions you ask, the better you’ll get to know your candidate. You need to find out if your candidate really knows what they’re talking about and has true CFO-level (or related) experience, or if they’re just blowing smoke. Conduct multiple interviews. Make sure that you interview your candidates more than once before making a hiring decision. And have your candidates interviewed by other employees too, especially employees that will be working closely with the candidate. They’ll provide some valuable insights. Candidates are usually on their best behavior and will put their best foot forward during the interview. So take your time and have more than one interview with the candidate before deciding who to hire. four Bring in a trusted advisor to interview the candidate(s) and ask your network of business contacts if they are familiar with him or her. Get someone else’s opinion on your candidate. Someone who might work closely with them. Perhaps your accountant or other financial advi ͽ