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Guide

When to hire a CFO (and what type you actually need)

Most companies hire a CFO either too early (before there is enough complexity) or too late (when cash surprises and stakeholder pressure force the issue). This guide helps you decide based on signals, not titles — and choose between fractional, interim and full-time CFO leadership.

Use the checklist Discuss your situation

The signals that indicate you need CFO leadership

Ignore job titles for a moment. The real question is: does the current finance setup produce the clarity and cadence required to run the business? If not, CFO leadership is often the missing ingredient.

To compare models quickly, see interim vs fractional CFO, or explore services.

1) Cash is unpredictable

Profitability exists on paper, but cash behaves differently.

  • Cash surprises happen more than once per quarter.
  • You cannot confidently answer: “how long can we run?”
  • Working capital is reactive, not managed as a system.

If this is relevant to your situation, you may also find these useful: Interim vs Fractional CFO → · Fractional CFO service → · Interim CFO service →

2) Forecasts don’t drive decisions

Forecasting exists, but it doesn’t change behaviour.

  • Forecast updates arrive too late to act.
  • The forecast is a spreadsheet exercise rather than driver-based.
  • Leadership debates numbers instead of actions.

3) KPIs are unclear or not owned

Teams argue about definitions and sources.

  • Multiple “truths” across functions.
  • No KPI owners, thresholds, or action cadence.
  • Unit economics are weak or not understood (margin, cost-to-serve).

4) Stakeholder expectations step up

Investors, banks and boards want tighter cadence and credibility.

  • Funding / covenants / diligence increase pressure on reporting.
  • Board packs need narrative, clarity and confidence.
  • Audit, compliance, or governance requirements increase.

5) The finance team needs a step-up

The team is working hard, but direction and structure are missing.

  • Roles are unclear (FP&A, control, ops, partnering).
  • Close and reporting quality are inconsistent.
  • Key projects stall: systems, processes, integration, controls.

If you recognise 2–3 of these signals, skip ahead to the model decision: Which CFO model fits? →

Common timing mistakes

The fastest way to waste CFO investment is to hire the wrong profile at the wrong time.

Hiring too early

A senior CFO without enough complexity becomes expensive “overhead”.

  • There isn’t enough leadership bandwidth to absorb the role.
  • The business needs a stronger controller first.
  • The CFO ends up doing accounting and firefighting.

Hiring too late

Finance problems compound silently until cash and credibility break.

  • Cash surprises become existential.
  • Fundraising or bank processes fail due to weak reporting and data.
  • The CFO starts in crisis mode instead of building capability.

Hiring the wrong profile

Stage mismatch is more common than competence issues.

  • A “big company CFO” in a scale-up without systems and structure.
  • A “reporting CFO” when the business needs execution and value creation.
  • An operator without stakeholder and governance capability.

Which CFO model fits your situation?

The right answer is not always “hire a full-time CFO”. Often the best first step is interim (urgent ownership) or fractional (build over time) — and then transition cleanly.

Most common starting point

Fractional CFO

You need CFO-level judgement and execution, but not full-time (yet).

  • 1–3 days/week CFO leadership with clear priorities and cadence.
  • Build cash visibility, forecasting rhythm, KPI ownership.
  • Scale the finance function and transition cleanly.

Learn more →

Interim CFO

Urgent transition: vacancy, integration, restructure, transaction, cash pressure.

  • Immediate ownership of cash, control and reporting.
  • Fast stabilisation and structured 30/60/90-day delivery.
  • Stakeholder confidence (board, bank, investors).

Learn more →

Full-time CFO

Finance leadership is a daily operational bottleneck and the role has enough “surface area”.

  • Daily executive ownership across finance strategy, governance and stakeholders.
  • Typically the right move once basics are stable and complexity is permanent.
  • Often preceded by interim/fractional to stabilise and define the role.

Context pages: CFO for Private Equity → · CFO for Scale-ups → · Compare services →

Decision checklist

Use this as a quick diagnostic. If you answer “yes” to 5+ items, you should seriously consider CFO leadership (fractional, interim or full-time).

Cash & forecasting

  • We do not have a reliable short-term cash forecast.
  • Working capital is not owned by anyone as a system.
  • Our forecast is not driver-based and does not influence decisions.
  • We cannot confidently run scenarios (growth, hiring, investment, downturn).

Reporting & governance

  • Close is slow or quality is inconsistent.
  • KPI definitions are debated; there is no single version of truth.
  • Board/investor reporting is reactive rather than structured and proactive.
  • Decisions are delayed because financial clarity is missing.

Finance function scale

  • Finance roles and responsibilities are unclear.
  • Key finance projects stall (systems, processes, integration, controls).
  • We are preparing for funding/PE/due diligence and data readiness is weak.
  • Our finance team needs stronger leadership and operating rhythm.
Discuss your checklist results Send context in writing

Frequently asked questions

A few quick clarifications that often help leadership teams decide.

At what stage should a company hire a CFO?

There is no single revenue threshold. Companies typically need CFO leadership when complexity and stakeholder expectations outpace the current setup: cash surprises, unreliable forecasting, unclear KPIs, scaling teams, or funding/PE readiness.

Do I need a full-time CFO or a fractional CFO?

Full-time is best when finance leadership is a daily bottleneck and the organisation can absorb a senior executive role. Fractional is ideal when you need CFO-level judgement and execution 1–3 days/week while building a scalable finance function.

What are the most common signs you need a CFO?

Cash unpredictability, KPI debates instead of decisions, slow/low-quality reporting, increasing investor/bank scrutiny, and a finance team that needs stronger direction and operating rhythm.

What is the difference between interim and fractional CFO?

Interim CFO is typically full focus during a transition or urgent period (vacancy, integration, restructuring, transaction). Fractional CFO is sustained CFO leadership part-time (often 1–3 days/week) to build capability over time.

Want a fast, honest recommendation?

In one conversation we can assess your situation and recommend the right model: fractional, interim, or full-time.

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