Do You Actually Need a CFO or Even a Fractional CFO?
The Myth: Every growing business needs a CFO.
The Reality: Not yet, you probably don't, unless…
If you're doing under $2M in annual revenue and your financials are relatively straightforward, you don't need a fractional CFO. What you need is a really good bookkeeper and a solid CPA. Spend your money there first.
A fractional CFO is a strategic investment—and like any investment, timing matters. Hiring one too early means you're paying for expertise you're not ready to use. Hiring one too late means you're making million-dollar decisions based on gut feel because you’re too busy to deep dive and analyze the financials each month.
You DON'T need a fractional CFO if:
You're doing under $2M in revenue with simple operations, and no plans to scale
You don't have cash flow complexity (multiple revenue streams, long sales cycles, inventory, etc.)
You're not planning aggressive growth in the next 12-24 months
Your biggest financial question is "Can I afford this?" (A bookkeeper can answer that.)
You DO need a fractional CFO if:
You're doing $2M-$15M in revenue and scaling fast
Cash flow is unpredictable and is stressing you out
You're making big decisions (hiring, pricing, investing) without understanding the financial impact
You want to grow sustainably, but don't know which levers to pull
Your financials are underutilized—you know there's insight buried in the numbers, but you don't have time to dig it out
A fractional CFO isn't about "needing help with the books." It's about gaining a strategic partner who helps you see around corners and make smarter moves faster.
You’ll know it’s time for an in-house full-time CFO when:
Your revenue consistently exceeds $15M-$20M annually. At this scale, the complexity and financial demands typically require someone full-time who's deeply embedded in daily operations.
You're preparing for a major liquidity event. If you're gearing up for an acquisition, merger, IPO, or significant fundraising round, you'll need full-time CFO leadership to navigate the process.
You need someone managing a finance team. If you've got multiple finance and accounting staff who need day-to-day leadership and development, a full-time CFO makes sense.
Your financial complexity requires constant oversight. Multiple entities, international operations, complex revenue models, heavy R&D—if your financial structure requires daily strategic attention, go full-time.
You can afford the $300K-$700K+ investment. A great full-time CFO isn't cheap. If you have the budget and the need justifies it, make the hire.
Until then? A fractional CFO advisor gives you strategic financial leadership without the six-figure salary, benefits, and overhead. You get the expertise when you need it, scaled to your business.
Make the Shift: Don't hire a fractional CFO because you think you "should." Hire one when you're ready to turn your financials into a competitive advantage—and when the ROI justifies the investment.
