When to hire a CFO

A first CFO in Australian high-growth businesses lands around Series A or B, roughly 50 plus staff and $10m plus ARR, though complexity is the real trigger. Below that most founders need a Head of Finance or VP Finance at $200k to $250k instead.

The mistake most founders make with the CFO title

The seniority is the trap. I speak to founders who cross a funding milestone and reach straight for a CFO, because the title feels like proof the company has grown up. But at Series A what most of them actually need is a Head of Finance or a VP Finance, at roughly $200k to $250k. Someone operational who builds the engine room, manages cash, and gives you the visibility you do not have yet. Get the seniority wrong and you lose a year you did not have. Almost every founder I speak to is convinced they need a CFO twelve months before they actually do, and the gap usually gets closed by dressing a Head of Finance up in a CFO title.^[6]

It cuts both ways. A lot of founders err on the side of under-hiring too. They price the role against their current complexity, not their complexity in twelve months, and then they are hiring again because the person they brought in could not scale with them. The whole game is matching the hire to where the business is heading, not where it is today.

What a CFO actually does, and what they do not

A CFO is not a senior accountant with a bigger title, and they are not a scorekeeper. The ones who change a business are the ones who use the numbers to move it forward, not the ones who report them accurately after the fact. There is a clean line between the finance leader who scores and the one who builds.

The best description of the job I have heard came from Rob Shore, CFO of Retail Food Group, on The CFO Track. He put it like this: a CFO should never be the true industry expert in the business. “At Retail Food Group, there is no way I am the best person to advise on making a doughnut. But what you have to do is translate from the technical side to numbers and back.” The value is in understanding how the business makes money, which KPIs matter, and being able to carry that between the board, the investors and the floor.

That is why a controller and a CFO are different hires, not different titles. A controller owns accurate, timely reporting: the close, compliance, clean numbers. A CFO owns what you do with them. Ben Watiwat, who has scaled finance at SafetyCulture and Immutable, framed the gap between the two exactly: “People eke out through the controllership role, but the broader commercial side is the key element to land the senior role. You need that blend of both. Yes, this is accounting, but how do you make this business better?”

The signals you actually need a CFO

Revenue is the signal everyone reaches for, and it is the weakest one on its own. I have placed finance leaders into $8m businesses and watched $20m businesses run well on a strong Head of Finance. What actually moves the decision is a cluster of these, showing up together.

If you are earlier than this and working out the first finance hire rather than the CFO, I broke that decision down separately.

The close breaking is the clearest signal of all

When the numbers stop arriving fast enough to act on, you have outgrown your finance setup. Rob Shore described walking into a business with three divisions that were not integrated, an ERP only one of them actually used, and books that took thirty days to close. “You are moving from businesses that would close their books thirty days after the month finished, and they have suddenly got to do it in five. And they have got to be able to forecast how the results are going to go in the future.” That gap, thirty days down to five, is the difference between finance that reports the past and finance that shapes the next decision.

There is a right order to fixing it, and it is not a shortcut. As Rob put it: “You do not jump to AI solutions. You go through these stages of getting your data in order, getting your controls in order and getting your systems in order.” A CFO who has done it before knows that sequence. It is a large part of what you are paying for.

If a raise is coming, start earlier than feels comfortable

A live or imminent raise is one of the strongest genuine triggers for a CFO, and the timing is almost always later than it should be. Ben Watiwat is blunt about it: the old idea that you have two years of runway so you start raising at twelve months does not hold, because a raise takes longer and investors are pickier. At Immutable he was refinancing the bank every year and running a capital raise roughly every eighteen months while the business grew from 50 to 2,500 people.

The part founders miss is what happens after the money lands. “The moment you have raised a round, expectations reset to zero. Anything you did prior to that raise does not count.” And diligence is not a once-every-few-years event at a fast-growing business. Alexey Mitko, who built finance from scratch at Eucalyptus before it sold for $1.6 billion, told me they raised almost every six months in the early days, so “diligence was a thing you would do almost constantly.” When an investor asks for a metric mid-round and no one owns the model, you are reconstructing it under pressure. That is the job you are hiring a CFO to have already done. The payoff for getting the timing right is real: a CFO who runs the process properly can shave months off a raise and add 10 to 20% on valuation. If a raise is the trigger, start the search the quarter before you start the deck.^[7]

The stages, and what to hire at each one

Here is the ladder I walk founders through. The numbers are Australian high-growth ranges quoted as base, with superannuation on top at the rate the ATO sets, and they are guides, not gates. A capital-heavy fintech hits the CFO threshold earlier than a lean SaaS business on the same revenue.

First finance hire: roughly 10 to 20 staff, $5m to $10m ARR

This is a Head of Finance or a strong financial controller, not a CFO, and it is not a bookkeeper either. Your first finance person is the one who builds the infrastructure the business grows on: the reporting frameworks, the compliance structure, the systems that let you fundraise, acquire and scale without losing control. It is the hardest hire a founder makes, and not because good candidates are rare. It is because most founders do not come from finance, so they cannot assess what good looks like. They end up writing a job description on guesswork and asking an AI what a Head of Finance should cost.

One thing to get right at this stage: a Head of Finance is not two jobs in one. If the brief asks for strategic oversight and decision support and the month-end close and the payroll and the reconciliations, you have written two roles. Pair a Head of Finance with a bookkeeper or accounts assistant underneath them. They are too expensive a resource to have running AP.

I set out what each salary band actually buys, from a senior accountant with a controller title up to someone who has built the function before.

The fractional CFO stage: usually between the two

There is a real gap between a business that needs more than a controller and one that can justify a full-time CFO salary. A fractional or interim CFO fills it well: senior judgement two or three days a week, often through a raise, without committing to the full-time hire before you are ready. In our Q2 2026 market report, 48% of businesses were using interim cover while continuing the permanent search, keeping the function running rather than settling.^[1]

I went through when a fractional CFO genuinely works, when it does not, and what it should cost.

First CFO: Series A or B, roughly 50+ staff, $10m+ ARR

This is the point where finance needs to lead, not report. A raise is live or coming, the board wants a forward view, and the founder can no longer be the person who owns the model. This is also where the difference between two CFOs on paper becomes real money. I recently mapped the market for a scale-up and had one candidate at $260k with eighteen months as a CFO, and another at $350k with thirteen years. The $350k CFO has seen three downturns, led four capital raises and survived two failed system implementations. They know what breaks before it breaks. Sometimes you want the hungry $260k hire who will grow with you, and sometimes you need the $350k hire who will not make expensive mistakes. The point is to know which one your next stage needs before you start.

A useful sanity check: by the time the first CFO lands, the business usually already has a bookkeeper, an assistant accountant and an FC or Head of Finance in place, sometimes with a fractional CFO alongside them. The Head of Finance or FC is typically the first operational finance hire, and the full-time CFO arrives on top of that structure at Series A or B, not instead of it.^[3] If none of that exists yet, you are probably a stage earlier than you think.

Business model moves that threshold more than most founders expect. A capital-intensive fintech, especially in non-bank lending or payments, needs a finance leader around Seed or Series A, when headcount is closer to 30 to 50, because finance is integral to the product itself. Deep tech carries heavy inventory, R&D and grants while the product can be seven or more years away, so a $30 to $50 million Seed round can justify a CFO on its own. A single-jurisdiction SaaS business sits at the other end: a financial controller inside and a fractional CFO outside can carry it a long way.

Whatever the stage, hire for where the role needs to be in 12 to 18 months, not for the problem in front of you. The now in a growing business is short-lived, and a hire scoped only to today’s mess is outgrown before they finish probation. Give the person enough scope to build the role themselves as the business changes around them. The salary band moves with the business too. For one fast-growing non-bank lender I work with, the right CFO number was $280k to $300k twelve months ago, sits at $300k to $350k today, and will likely be $350k to $400k in another twelve to eighteen months as the loan book scales.^[4] Budget for the role the growth creates, not the role you are advertising.

Hiring a CFO too early is the more expensive mistake

Founders worry about hiring late. In practice the early hire costs more. A CFO with nothing strategic to do will build process the business does not need yet, or leave. Either way you have spent $300k of salary and a year of runway to learn you needed a Head of Finance and a good fractional. Wait for the signals in the table above to show up together, and you hire once, into a role that has real work in it.

Why the search looks nothing like a job ad

The best finance leaders are almost never on the market. Nationally, there are only around 200 to 300 people who have built and scaled a finance function from scratch in an Australian startup and would happily do it again. The best of them are not on Seek. They get approached directly, through networks and people who know the market, so if you are running an advert the candidates you actually want are gone before you are ready to call.

It also matters what those people are choosing on. When we polled the Story network for our Q3 2026 State of the Market report, the most attractive founder trait for a CFO was a clear vision at 46.9%, followed by trusting the team at 32.7%. Only 7.1% cared whether the founder was financially literate. You do not need to out-finance your finance hire; bring clarity of direction and the willingness to let them own the function, because that is what the best of them are choosing you for.^[5]

That is what a mapped, relationship-led search is for. I posted a CFO role at 1pm on a Friday and by 10am Monday had a shortlist of five immediately available, top-tier candidates , met and ready to send within six business hours. That does not happen from a job board. It happens when the reach and the trust are already there. On the roles I run, a shortlist lands in about five working days and the average from brief to signed contract is around fifteen.^[2]

If you want the detail on how a retained finance search runs and what to ask before you brief one, I wrote that up.

For the traits that separate a good CFO from a great one, see what makes a great CFO.

Common questions