When to Hire a CFO: Signs Your Company Is Ready

You don’t need a Chief Financial Officer (CFO)¹ to get your company off the ground—but if you’re scaling fast, raising capital, or making high-stakes financial decisions, you’ll feel their absence. Cash flow gets harder to track. Forecasts fall apart. Investors want answers you can’t confidently give. That’s the moment founders and finance leaders start asking the right question: when to hire a CFO?

Hitting a certain revenue target is not the only factor you need to consider. Timing your CFO hire depends on how complex your business has become, how quickly you're growing, and how far ahead you're trying to plan.

For startups especially, knowing when to bring in strategic finance leadership can be the difference between controlled growth and chaos. We'll also discuss the Wise Business account. The global account that can help your company with all things cross-border.

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Understanding When You Need a CFO

A CFO does much more than monitor budgets. Their role spans financial planning, fundraising, risk management, and strategic forecasting. They help ensure you know where your money is going and how each decision affects long-term growth.

This matters especially when a company crosses the 10+ employee mark and the financial stakes get higher.

Some telltale signs you're ready include:

• You’re preparing for or have raised a funding round.
• You can’t confidently answer investor or board questions.
• You're growing rapidly and managing multiple revenue streams.
• You're burning cash and need help with scenario planning.
• You’re eyeing an acquisition, expansion, or IPO.

When these challenges arise, a part-time accountant or controller won’t cut it. That’s when to hire a CFO.

When Should a Startup Hire a CFO?

For startups, hiring a CFO too early can be costly, but hiring too late can lead to financial missteps that are even more expensive.

Most venture-backed startups bring on a CFO after Series A or B funding², when investor relations, cash runway analysis, and modeling become too complex for the founding team or a controller to handle alone.

If your startup is bootstrapped, you may want to consider a fractional or outsourced CFO³ at the point where you're juggling financial decisions you don’t fully understand or struggling to generate consistent cash flow reports.

CFO vs Controller vs Bookkeeper: Know the Difference

Before deciding when to hire a CFO, it’s important to understand how this role differs from others in your finance team.

Many businesses assume they already have a CFO-level resource when in reality they’re relying on a controller or finance manager who lacks the broader strategic skill set a CFO brings.

• A bookkeeper⁴ focuses on the day-to-day financial data: recording transactions, reconciling bank statements, handling invoices, and ensuring that your ledgers stay up to date.This is the most operational and tactical role in the finance stack.
• A controller⁵ takes a step up and is responsible for overseeing accounting operations. They manage the month-end close process, prepare internal financial reports, ensure tax and regulatory compliance, and supervise the accounting team.Their role is more about accuracy and controls than strategy.
• A CFO operates at the highest level of financial leadership. They develop and execute the company’s financial strategy, oversee budgeting and forecasting, evaluate capital allocation, raise funding, manage investor relationships, and guide long-term planning.CFOs are also critical in mergers, acquisitions, and exit planning.

While controllers and bookkeepers are essential to a healthy finance function, neither is equipped to handle the level of insight and future-focused planning a CFO provides.

If you're facing big decisions, such as raising capital, entering new markets, or managing complex financial risk, you need a CFO who can guide those choices with a data-driven strategy.

When to Hire a CFO: Full-Time vs Fractional vs Virtual

There’s no single blueprint for hiring a CFO. What your company needs depends on size, complexity, and growth trajectory. As your organization evolves, so should your financial leadership. Here are three common options to consider when deciding when to hire a CFO:

• Full-time CFO: A permanent CFO is best suited for companies generating $10 million or more in annual revenue, managing multiple business entities, or dealing with complex cap tables and investor relations.They typically lead an internal finance team and are deeply embedded in all strategic decisions.Compensation for a full-time CFO often starts at $200,000 per year, with additional performance-based incentives or equity, particularly in growth-stage and venture-backed companies.
• Fractional CFO: This option provides part-time executive finance support—often just a few hours per week or month—at a significantly lower cost.Fractional CFOs are ideal for early-stage startups and growing small businesses that need high-level financial strategy but can’t yet justify a full-time salary.Rates vary, but most fall between $3,000 and $10,000 per month, depending on engagement scope and industry experience.
• Virtual CFO firms: These firms offer CFO-as-a-service models, typically bundling financial strategy, forecasting, reporting, and sometimes tax support.They’re especially helpful for companies scaling quickly or those that need immediate access to experienced finance professionals without committing to a long hiring process.Virtual CFO solutions can be tailored to fit your company’s current size while offering the flexibility to scale up as you grow.

For finance leaders managing teams of 10 to 50 employees, a fractional or virtual CFO can serve as a powerful stopgap, bringing strategic insight without the overhead of a full-time hire.

This allows your business to stay agile while preparing for more sophisticated financial needs down the line.

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What to Expect After Hiring a CFO

A CFO will change how your company makes decisions, manages growth, and prepares for the future.

Within the first 90 days, a high-performing CFO will begin laying the groundwork for long-term financial health and accountability.

You can expect them to:

• Audit financial systems and reporting structures to identify gaps, inefficiencies, or risks in your current processes.
• Build out detailed forecasts and financial dashboards that turn raw numbers into clear, actionable insights, often tailored to founders, department leads, and investors.
• Align your finance function with company OKRs by ensuring budgets and resource allocation match your strategic priorities.
• Develop a capital efficiency and risk management plan, including scenario modeling, cash flow projections, and burn rate analysis.

This strategic guidance gives you confidence when talking to your board, raising funds, or making key hiring and expansion decisions. It also helps shift your finance team from reactive to proactive, creating a solid foundation for sustainable growth.

How to Find and Hire the Right CFO

Think of hiring a CFO as a high-stakes decision that means choosing a strategic partner who will help shape your company’s financial future. The process should go beyond resumes and technical skills.

When evaluating candidates, prioritize:

• Strategic thinking and financial modeling experience: look for someone who can challenge assumptions, run scenarios, and guide long-term decisions.
• Industry knowledge and relevant stage experience: a CFO who understands your business model and growth phase will ramp up faster and avoid costly missteps.
• Strong communication skills, especially with investors, board members, and department heads. Your CFO should be able to translate complex financials into clear, actionable insights for non-financial stakeholders.

Common places to source strong CFO talent include:

• Referrals from trusted founders, investors, or finance leaders in your network/
• CFO-as-a-service platforms and virtual CFO firms, which can offer interim or fractional solutions quickly.
• Executive recruiters with experience placing finance leadership roles in your industry or region.

During the interview process, ask candidates about the decisions they've made under pressure, how they’ve helped previous companies raise capital or manage downturns, and how they balance financial discipline with strategic risk-taking.

Finally, make sure your CFO aligns with your company’s culture and long-term vision. The right hire should be as invested in your growth as they are in your numbers.

Final Thoughts

When to hire a CFO comes down to your complexity, growth ambitions, and risk exposure. You need one when you can no longer afford to make financial decisions in the dark. That tipping point looks different for every company, but if you're reading this, there's a good chance you're already there.

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