When Does Your Business Actually Need a CFO?
Many founders ask the same question at some point in their growth journey: “Do I really need a CFO — or is my accountant/bookkeeper enough for now?”
It’s a fair question. A full-time CFO is a big investment, and most $1M–$20M businesses don’t yet need one in-house. But doing nothing isn’t the answer either — because once your business reaches a certain level of complexity, “winging it” financially starts to cost you real money.
So how do you know when it’s time to bring in CFO-level support (whether that’s full-time or fractional)?
Here are five common signs:
1. You’ve hit $1M+ in revenue — and the stakes are higher
At this stage, decisions about hiring, pricing, and growth have a much bigger impact on cash flow and profitability. Bookkeepers keep you compliant; CFOs help you decide what comes next.
CFO impact: Forecasting scenarios before you hire, expand, or invest so you don’t overstretch.
2. Profit isn’t keeping up with revenue
It’s a common trap: sales are growing, but profit margins are shrinking. Without deeper financial insight, you may not even see where the leaks are happening.
CFO impact: Margin analysis, pricing reviews, and cost optimisation that uncover thousands in hidden profit.
3. Cash flow surprises keep you up at night
If you’re constantly checking the bank account before payroll or supplier payments, you don’t have true visibility. And stress-free growth isn’t possible without it.
CFO impact: Rolling 13-week cash flow forecasts, smarter debtor management, and strategies to free up working capital.
4. You’re planning a big move
Opening a new location, launching a new product, raising capital, or prepping for exit — these are moments where strategy matters. And the wrong financial structure can cost you years of value.
CFO impact: Building models that show the likely profit, risk, and cash impact before you commit.
5. You want peace of mind
Many founders tell me they just want to know: “Are we okay? Are we on the right track?” Having an experienced CFO on your side means a second opinion, clarity on the numbers, and a partner in strategy.
CFO impact: Turning uncertainty into clear decisions backed by data.
The Bottom Line
You don’t need to wait until you’re “big enough” to hire a full-time CFO. A fractional or outsourced CFO gives you the same strategic firepower — scaled to your business size and budget.
The real question isn’t whether you can afford CFO-level support. It’s whether you can afford to keep making high-stakes decisions without it.