Do I Need a CFO Yet? Many Founders Ask This at the Wrong Time

Founders don’t wake up one day thinking, “Today’s the day I hire a CFO.”

It usually creeps up on them gradually. Revenue is climbing nicely, but somehow cash in the bank feels tighter than it should. Big decisions—like whether to hire that next salesperson or sign a new lease—start carrying more weight. And suddenly, the gut-feel approach that got you this far doesn’t seem quite enough anymore.

That’s when the question hits: Do I need a CFO now? Too often, it’s either asked a bit too late (after a cash crunch or a missed opportunity) or too early (when the business isn’t quite ready for that level of overhead).

It’s Rarely Just About Revenue

There’s no magic revenue threshold that flips the switch. We’ve worked with companies pulling in around $2 million in annual revenue that were already drowning in financial complexity—multiple product lines, tricky unit economics, or aggressive growth plans. On the flip side, we’ve seen $15 million businesses running smoothly on a solid controller and some outsourced help.

What really signals the need is complexity creeping in. When you can’t manage the finances purely by intuition anymore, it’s time to move from basic bookkeeping to real strategic support. You’ll feel it in things like frequent cash flow surprises, second-guessing pricing changes, uncomfortable hiring calls, or prepping for a funding round without a crystal-clear picture of the numbers.

The Downside of Jumping to a Full-Time Hire Too Soon

Bringing on a full-time CFO is a big step. Beyond the six-figure salary, you’ve got equity grants, benefits, taxes, and the ramp-up time for them to really get the nuances of your business. If it’s not the perfect fit—or if the company evolves in a way that changes what you need—it’s tough and costly to unwind.

For a lot of growing companies, especially in that $1–10 million range, you don’t yet need someone in the seat full-time. What you do need is seasoned judgment, someone who’s seen these stages before, and a calm hand on the wheel—without committing to a permanent structure prematurely.

Why Fractional CFOs Fit This Stage So Well

A fractional arrangement lets you tap into high-level financial expertise on your terms. It keeps things flexible while zeroing in on the decisions that move the needle most—cash management, forecasting, pricing strategy—without building out a full finance department before the business truly demands it.

In our experience, this approach gives founders the breathing room to scale confidently, without the regret of overcommitting too early.