When Should You Hire a CFO?

July 28, 2025
When Should You Hire a CFO?

Whether you’re running a startup, scaling fast, or facing financial complexity, the question eventually comes up: Is it time to hire a CFO? This guide breaks down when to bring in a full-time, fractional, or interim CFO — and how to know which one is right for your company’s stage.

When Do You Need to Hire a CFO?

Running a growing company means wearing a lot of hats — but at some point, financial decisions become too complex to manage without expert guidance. Whether you’re scaling fast, navigating uncertainty, or preparing for a major event like fundraising or exit, there comes a time when you need more than a bookkeeper or controller. You need a CFO.

What Does a CFO Do for Your Business?

InterimExecs RED Team’s Vic Datta, who has more than 25 years of deep experience as an interim CFO, says companies increasingly expect CFOs to see around corners.

“What you get is this need for sort of an athlete that looks at operations, that looks at finance, that looks at IT, and that also looks very numerate…sort of connect all those dots, and forecast performance as well as forecast basic sales and margins for the firm,” he says. 

But should that be a full-time hire? An interim solution? Or would a fractional (part-time) CFO be enough?

Here’s how to know when it’s time, and what type of CFO might be right for your business.

1. When the Numbers Stop Telling You the Full Story

You might have strong accounting support and basic financial reporting in place. But if you’re looking at spreadsheets and still can’t answer critical questions like:

  • Where are we leaking cash?
  • Can we afford to hire or expand?
  • What’s our true cost per customer?
  • Are we set up for an audit or due diligence?

… then it’s time to level up.

A CFO brings clarity, not just reports. They connect the dots between financials and strategy, helping you make smarter decisions with confidence.

2. When You’re Preparing for What’s Next

Bringing in a CFO isn’t just about fixing problems. It’s about preparing your company for what’s ahead.

Common triggers for bringing on a CFO include:

  • Raising Capital: Investors want to see solid financial modeling, risk controls, and clear use of funds.
  • M&A Activity: Whether you’re buying or selling, a CFO plays a critical role in due diligence, valuation, and deal structure.
  • Expansion: Growth into new markets, products, or regions increases complexity — and risk.
  • Operational Inefficiencies: If margins are shrinking or decisions are being made without clear financial data, a CFO can help refocus on profitability.

3. What Type of CFO Do You Actually Need?

Not every business needs a full-time CFO right away. In fact, hiring one too early can be expensive and inefficient. The good news is there are flexible options:

Full-Time Interim CFO

This is a seasoned executive who steps in temporarily, often during a period of transition or challenge. For example:

  • Your last CFO left unexpectedly.
  • You’re preparing for a major transaction.
  • Your finance team needs reorganization or new systems.
  • You’re facing a cash crisis and need expert help to stabilize.

An interim CFO can lead the finance function, mentor your team, implement better systems, and even help hire a permanent replacement. They’re hands-on, full-time, and focused on immediate impact.

Fractional (Part-Time) CFO

Not every company needs 40+ hours a week of executive-level financial leadership. A fractional CFO gives you access to top-tier talent — typically for a few days a week or month — at a fraction of the cost.

Ideal when:

  • You need high-level financial insight, but not every day.
  • You’re watching overhead closely.
  • You’re early-stage and need help with forecasts, fundraising, or board reporting.
  • Your business is seasonal or project-based.

InterimExecs RED Team fractional CFOs have deep experience across industries and bring a strategic, outside perspective — without the long-term commitment or cost of a full-time hire.

4. What a Great CFO Brings to the Table

Whether interim or fractional, a strong CFO doesn’t just “keep the books.” They drive change, improve performance, and provide financial leadership that touches every part of the business.

Key contributions include:

  • Cash flow management and forecasting
  • Building and refining financial models
  • Setting KPIs and tracking performance
  • Navigating debt or equity financing
  • Strengthening controls and audit readiness
  • Partnering with operations and sales to improve margins
  • Advising on M&A, exits, or restructuring

The right CFO helps you look forward and can be a game-changer in taking your company to the next stage.

Conclusion: Don’t Wait Too Long

Many business owners wait too long to bring in a CFO — often because they think a top-tier financial executive is only for much larger companies. But if financial decisions are keeping you up at night, you’re flying blind, or you’re on the cusp of something big, it’s time.

Fortunately, options like interim and fractional CFOs mean you can get the help you need, tailored to your company’s size, stage, and budget.

Ready to Hire a CFO?

At InterimExecs, we match companies with world-class fractional CFOs from our elite RED Team — available for part-time, project, or ongoing engagements. 

Get matched with a rock star CFO

FAQ

Q: When should I hire a CFO?
A: You likely need a CFO when your business is experiencing rapid growth, raising capital, facing cash flow complexity, or preparing for an audit or exit. It goes beyond managing the numbers at that point, and strategic CFO support can be a game-changer.

Q: When should a startup or growth-stage company hire a CFO?
A: Startups and growth-stage companies typically hire a CFO when they begin raising capital, managing investor relations, or need financial forecasting to scale. A fractional CFO brings deep experience to the table, helping early-stage companies build investor confidence, streamline fundraising negotiations, and avoid costly financial missteps.

Q: Can I hire a CFO part-time?
A: Yes. Many companies hire a part-time CFO, known as a fractional CFO, to get high-level financial leadership without the cost of a full-time executive. Fractional CFOs are ideal for startups, lean teams, or businesses that need strategic financial guidance but aren’t yet ready for a permanent CFO.

Q: What’s the difference between a fractional and interim CFO?

A: A fractional CFO provides long-term, part-time financial support to growing companies. An interim CFO typically works full-time for a short, defined period—stepping in during a leadership gap, financial crisis, or major transition.

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