The right financial professional at the right time can significantly impact your business’s success. Many small business owners struggle with financial management, either trying to do everything themselves or hiring the wrong role too soon. This guide outlines when to hire a bookkeeper, controller, or CFO based on your business’s revenue.
$0–$200K: Start with a Bookkeeper
If your business generates under $100K in revenue, a full-time finance team is likely unnecessary. However, bringing in a part-time or full-time bookkeeper can help maintain organization, track expenses, and ensure accurate financial records. This proactive approach prevents future headaches and supports informed decision-making.
Signs You Need a Bookkeeper:
✔ You’re spending too much time managing invoices and expenses.
✔ Your financial records are disorganized.
✔ You want to prepare for tax season without stress.
$2M–$10M: Consider a Fractional CFO
At $2M in revenue, your business may have additional profits but require guidance on the best investment strategies. A Fractional CFO (FCFO) provides financial strategy, cash flow management, and business growth support without the high cost of a full-time hire.
Signs You Need a Fractional CFO:
✔ You’re unsure where to reinvest profits for maximum ROI.
✔ Cash flow management is becoming complex.
✔ You’re planning for long-term growth and need financial insights.
$2M–$10M: Hire a Controller for Financial Oversight
At this stage, a part-time bookkeeper may no longer suffice. A Controller ensures financial operations run smoothly by overseeing bookkeeping, financial reporting, and compliance. Their role includes establishing financial controls and maintaining accurate records.
Signs You Need a Controller:
✔ Your financial operations have grown too complex for a bookkeeper.
✔ You need better reporting for decision-making.
✔ Compliance and accuracy in financial statements are a priority.
$10M–$50M: Hire a Full-Time CFO
Scaling past $10M in revenue necessitates a full-time CFO. This executive leads strategic financial planning, oversees fundraising efforts, and focuses on profitability maximization. A CFO provides the leadership required for sustained growth.
Signs You Need a Full-Time CFO:
✔ You need a dedicated finance leader to drive strategy.
✔ Your business requires financial forecasting and risk management.
✔ You’re seeking investors or planning major expansions.
Final Thoughts
Bringing in the right financial role at the right time helps your business grow efficiently while mitigating financial risks. Whether you need a bookkeeper to keep your records clean, a controller for financial oversight, or a CFO for strategic direction, aligning your financial hires with your revenue stage is crucial.
Need help with bookkeeping, financial reporting, or process improvements? Contact us today to discuss how we can support your business growth!
