For a finance hire to succeed they need to understand exactly what’s required of them, and that key stakeholders have bought into the concept of having a CFO. Whilst salaries vary, finance professionals are often not inexpensive hires and they don’t directly generate any revenue. So firms must understand the cost implications.

However, firms must also consider the benefits to their business of really understanding their firm’s key drivers, of being compliant, of bringing in strategy and budgeting expertise.

Whilst it can be helpful to hire someone from the same industry, I’d always urge clients to consider individuals from similar, but not the same industry. Why? Well in many cases, candidates from other industries bring a diversity of thinking to issues that can be invaluable.

The most important thing is that the person you hire understands the key drivers of your industry. As an example, they understand that service firms charge for time and advice, but in reality they don’t produce anything. Therefore, procurement experience is important, but not as important as in asset intensive industries.

Being a Chartered Accountant is often seen as the gold standard of qualifications. However, there are of course exceptional accountants who aren’t a Chartered Accountant, and indeed some businesses may not require the skill set a Chartered Accountant brings. As an example, if you want to really get under the bonnet of your business, then some people would prefer to hire a management accountant. For complex industries, it can be helpful if someone obtained their accountancy qualification with first time passes, as this can indicate a strong academic mind.

However, to focus purely on this sometimes ignores that a CFO also needs to be pragmatic, and experience can be more valuable than outstanding academics.