I’ve
worked
in
a
variety
of
capacities
in
and
around
home
building
and
land
development
for
40
years
(argh). 
One
constant
over
the
years
has
been
the
undervaluing
of
Chief
Financial
Officers. 

I
thought
about
this
while
working
with
a
client
on
a
hire
for
this
position.

On
one
level,
it’s
understandable.
Entrepreneurs
start
homebuilding
or
land
development
companies,
and
right
off
the
bat,
it’s
all
about
finding
and
putting
together
deals
and
securing
capital.
After
all,
as
a
client
once
said,
“You
know,
all
the
company
management
is
hypothetical
if
we
don’t
have
deals.”
I
can’t
argue
with
that.
From
that
stems
“find
’em
and
finance
’em.”
If
the
founder
was
also
the
initial
capital
raiser,
they
probably
hired
a
bookkeeper
to
get
started.
That
person
grew
over
time
into
a
controller.
If
the
founder
had
an
initial
fundraising
employee,
that
person
probably
grew
into
the
VP
Finance/Treasurer
role.
Great
at
raising
money
and
working
with
partners
and
bankers,
but
accounting
was
secondary.

Then
the
company
grows
and
becomes
more
complex.
Accounting
is
often
given
insufficient
attention
when
the
Treasurer
is
in
charge,
and
there
is
a
tendency
to
believe
that
capital
must
be
raised
today
and
that
systems
can
be
improved
tomorrow.
But
tomorrow
never
comes.

If
the
controller
is
in
charge,
a
strategic
view
of
capital
may
be
lacking.
As
you
advance
in
your
career
and
get
the
numbers
perfect,
it’s
hard
to
put
on
the
hat
that
says
“good
enough
to
make
a
hard
decision.”
So,
they
are
sometimes
slow
to
be
true
thought
partners
for
the
founder.
Every
question
leads
to
trying
to
give
the
perfect
answer,
not
just
the
quick,
good-enough
answer
for
the
hard
question
at
hand.

Often,
while
they
might
not
admit
it
out
loud,
the
founder
can’t
help
but
think,
“How
hard
can
accounting
be?
It’s
a
bunch
of
rules
to
follow!”
But
it’s
not.
Sure,
there
are
rules,
but
they
don’t
provide
all
the
answers.
And
they
certainly
don’t
help
you
interpret
the
financials
and

pro
forma
statements
produced.
Like
all
other
parts
of
our
business,
it’s
part
science,
part
art.
Let’s
face
it,
mastering
systems
of
any
kind
is
just
plain
hard,
grinding
work.
And
it
takes
lots
of
practice.

So,
the
CFO
we
want
really
understands
accounting
and
its
nuances,
systems,
procedures,
and
capital
–
debt,
equity,
mezzanine,
etc.
It’s
not
easy
to
be
good
at
all
of
that.

The
intangibles

Then
we
layer
in
the
key
intangibles
that
further
narrow
the
field:

The
ability
to
be
a
thought
partner
and
push
back
against
the
founder.
If
there
is
anyone
in
the
company
who
is
going
to
stand
up
to
the
CEO
and
say,
“We
are
not
doing
that.
We
swore
we
would
not
take
those
risks,
and
we’re
not
going
to
start,”
it’s
the
CFO.
A
CFO
who
owns
the
numbers,
can
think
quickly
and
conceptually,
and
is
prepared
to
push
back
when
everyone
wants
to
say
what
the
owner
wants
to
hear
is
worth
their
weight
in
gold.

It’s
arguably
the
most
stressful
position
in
the
company,
along
with
the
founder’s.
Let
me
be
clear,
all
positions
in
a
company
can
be
difficult
and
stressful.
But
no
other
position,
again,
other
than
the
founder/CEO,
is
responsible
for
everyone
else’s
mistakes,
miscalculations,
and
poor
estimates.
The
CFO
is
responsible
for
all
the
numbers
presented
to
banks,
equity
partners,
owner
groups,
etc.,
and
for
explaining,
when
the
numbers
are
missed,
why.

But
they
can’t
say,
“Bob
in
construction
constantly
underestimates
costs.
Call
him.”
Despite
being
reliant
on
purchasing,
construction,
land
development,
sales,
etc.,
they
bear
the
brunt
of
any
miss.

So,
CFOs
have
to
be
demanding,
precise,
and
thick-skinned.
And
it
probably
explains
why
I’ve
seen
more
burnout
in
this
position
than
in
any
other.
You’re
reliant
on
everyone,
resented
for
questioning
whether
people
in
the
company
can
really
deliver
on
what
they
say,
and
then
held
responsible
when
they
can’t.

Here’s
what
founders
and
entrepreneurs
often
miss:
this
isn’t
a
role
that
rewards
a
single
skill
set.
You
need
someone
who
can
walk
into
a
lender’s
office
with
genuine
optimism
and
a
compelling
story,
then
return
to
their
desk
and
ruthlessly
scrutinize
every
number
behind
that
story.
And
then
–
perhaps
hardest
of
all
–
be
willing
to
be
the
company’s
conscience
when
everyone
else,
including
you,
wants
to
charge
ahead.
That
combination
–
an
optimistic
fundraiser,
a
precise
accountant,
and
a
trusted
truth-teller
–
is
genuinely
rare.

Underestimating
how
rare
it
is
and
what
it’s
worth
isn’t
just
a
missed
opportunity.
It’s
a
risk
you
can’t
afford.