https://youtu.be/vLrjRCifV9A?si=5vN3YfuO-H_TtAS5
As we often discuss here at Advise RE, growth creates complexity. What starts as a simple business with clean books and steady revenue can quickly evolve into multi-state payroll, layered revenue streams, partner distributions, and major tax exposure.
The question many founders eventually face is this:
When do you actually need a CFO?
Not necessarily a full-time executive — but strategic financial leadership that helps you make smarter decisions as you scale.
Let’s break it down.
What Does a CFO Really Do?
Many business owners assume a CFO is simply an advanced bookkeeper. That’s not accurate.
A bookkeeper records transactions.
A CFO interprets the numbers and builds strategy around them.
A true CFO focuses on:
• Financial forecasting and long-term planning
• Cash flow management and runway analysis
• Risk mitigation and compliance oversight
• Structuring partner and shareholder distributions
• Strategic tax positioning
• Capital planning and growth strategy
In short, a CFO doesn’t just track what happened — they help you decide what should happen next.
Why Growing Businesses Hit a Wall
In the early stages, basic accounting software and a competent bookkeeper are often enough. But as revenue grows, complexity usually grows faster than profit.
You may start noticing:
• Multiple revenue streams that don’t align cleanly
• Payroll across multiple states
• Contractors versus employees creating compliance questions
• Partner distributions becoming complicated
• Major financial decisions being made without projections
• Increasing tax exposure or audit risk
At this point, the business often feels profitable — but unclear.
That’s typically where a part-time CFO becomes valuable.
What Is a Part-Time CFO?
A part-time CFO provides executive-level financial leadership without the cost of a full-time hire.
Instead of paying a six-figure salary plus benefits, businesses engage a CFO for strategic oversight on a monthly or quarterly basis.
This allows founders to:
• Gain clarity on cash flow
• Build forward-looking projections
• Structure distributions properly
• Prepare for capital raises or financing
• Reduce tax and compliance risk
It’s about bringing high-level thinking into the room — without overbuilding overhead.
When It Might Be Too Early
Not every business needs CFO support immediately.
If you are:
• Pre-revenue
• In the very early startup phase
• Still validating your product or market
You may benefit more from strong bookkeeping, clean tax compliance, and disciplined cash management before layering in CFO oversight.
The key is timing.
CFO services make sense when financial decisions become strategic — not just administrative.
The Real Question
The real issue isn’t “Can I afford a CFO?”
It’s:
Can you afford to make major financial decisions without one?
As revenue scales and complexity increases, financial clarity becomes leverage.
The right financial leadership at the right time can accelerate growth — or prevent costly mistakes.
If you’re unsure whether you’ve reached that stage, it may be time to evaluate where your business truly stands.
🎥 Watch the full video discussion here:
https://youtu.be/vLrjRCifV9A?si=5vN3YfuO-H_TtAS5
📬 Need help determining whether a part-time CFO is right for your business?
Contact: contact@adviseretax.com
Visit: www.adviseretax.com
