Many founders hire a full-time CFO because the numbers feel disorganised or something seems to be slipping. But that is usually not a CFO problem.
The reality
- A bookkeeper logs transactions.
- A management accountant brings order and explains what is going on.
- An FC pulls performance together and helps plan.
- A CFO gets involved when the business is raising money, doing deals or making big commercial decisions.
Jumping straight to hiring a full-time CFO often leads to issues and can cost the business in more ways than one.
They get stuck doing work they do not enjoy
CFOs grew tired of posting journals years ago. Going back to transactional work drains their energy and does not use their expertise.
You are paying more than you need to
It is like hiring an electrician to change a plug. They can do it, but it is not good value.
The problems still exist months later
If a full-time CFO was not the right fit for the stage you are at, the original issues probably have not improved.
A strong Management Accountant or Financial Controller, plus perhaps a part-time experienced Fractional CFO, is often a much better setup. Remember to always hire the level that matches the size of the job, not the title that looks impressive.
