Do You Need a CFO Yet?

What Financial Support Looks Like at Every Stage of Growth

As a business grows, its financial needs change, often faster than founders expect. Many entrepreneurs know they need “help with the numbers,” but aren’t sure what kind of help makes sense at their current stage.

This guide breaks down what financial support typically looks like at different revenue levels, explains the difference between a bookkeeper, controller, and CFO, and helps you recognize when it may be time to upgrade your financial support.

Why This Question Matters

Hiring the wrong level of financial support can be costly in two ways:

• Too little support: poor data, bad decisions, cash flow surprises

• Too much support: paying for complexity you don’t yet need

The goal isn’t to “get a CFO as fast as possible.”

The goal is to have the right financial support at the right time.

Financial Support by Stage of Business Growth

While every business is different, most follow similar patterns as they scale:

Early Stage: $0 – $2M in Revenue

Primary Focus: Proof of business plan and survival of business, simplicity, and compliance

At this stage, founders are usually wearing multiple hats, focused on revenue and product/service delivery, and managing cash very closely themselves.

Typical financial needs:

• Basic bookkeeping

• Expense tracking

• Tax compliance

• Simple reporting (P&L, cash balance)

Best-fit support:

• Outsourced bookkeeping

• CPA for tax compliance

Common finance and accounting challenges:

Common challenges in this stage result from DIY bookkeeping where the numbers reported don’t help facilitate growth-based decision making, are mainly kept for tax filing purposes, and provide limited visibility into true profitability.

Key question to ask:

“Do I trust my numbers enough to make decisions?”

Growth Stage: $2M – $10M in Revenue

Primary Focus: Control, clarity, and consistency

This is where financial complexity increases quickly. Businesses at this stage often experience hiring and payroll growth, new or unplanned revenue streams, tighter cash flow management needs, and increased tax exposure

Typical financial needs:

• Monthly closes

• Accurate balance sheets

• Cash flow visibility

• Budgeting and forecasting

• Tax strategy (not just filing)

Best-fit support:

• Outsourced controller

• More proactive CPA involvement

Common finance and accounting challenges:

Common challenges in this stage include the lack of proper review and technical expertise. This manifests as bookkeeping “being done” but not reviewed for accuracy. Financials are commonly delayed or unreliable, which leaves founders making decisions by gut feel, rather than objective data.

Key question to ask:

“Do I understand why the numbers look the way they do?”

Scaling Stage: $10M+ in Revenue

Primary Focus: Strategy, planning, and forward-looking decisions

At this stage, financial decisions directly shape the future of the business. Businesses here are often dealing with complex cash flow dynamics (vendors requesting 30 day terms while customers stretch you out to 90 days), volume based pricing and margin decisions, substantial investments into technology, and owner compensation.

Typical financial needs:

• Forecasting and scenario modeling

• Strategic financial planning

• KPI tracking

• Leadership-level financial insight

• Proactive tax and cash planning

Best-fit support:

• Fractional CFO

• Integrated controller support

Common finance and accounting challenges:

Common challenges in this stage result from no one interpreting financial reports because founders don’t have a financial thought partner. Decisions can feel higher-stakes with less margin for error, which can be a very lonely place for a founder. No one likes being on an island.

Key question to ask:

“Do I have someone helping me plan ahead instead of just reporting the past?”

Bookkeeper vs. Controller vs. CFO (In Plain English)

Understanding these roles helps clarify what kind of support you actually need.

Bookkeeper

• Records transactions

• Categorizes income and expenses

• Keeps books up to date

Focus: Accuracy and completeness

Controller

• Oversees bookkeeping

• Ensures financial statements are accurate

• Manages the monthly close

• Improves financial processes

Focus: Reliability and structure

CFO

• Interprets the numbers

• Builds forecasts and scenarios

• Helps with strategic decisions

• Advises on cash flow, growth, and risk

Focus: Insight and planning

Think of it this way:

Bookkeepers record the story.

Controllers make sure it’s accurate, consistent, and repeatable.

CFOs help decide what happens next.

Signs You’ve Outgrown DIY or Basic Bookkeeping

You may be ready for a higher level of support if:

• You don’t trust your financials

• You’re surprised by cash shortages

• Decisions feel riskier than they used to

• You’re spending too much time in the books

• You only talk to your CPA at tax time

These are not failures. They are growth signals.

What a Fractional CFO Actually Does

A fractional CFO provides senior-level financial insight without the cost of a full-time hire.

Typical responsibilities include:

• Cash flow forecasting

• Budgeting and planning

• Financial decision support

• KPI development

• Strategic tax and compensation planning

• Acting as a financial sounding board

Fractional CFO support is designed to scale with the business, adjusting as needs

evolve.

Key Takeaway

Not every business needs a CFO, but every business needs financial clarity.

The right level of financial support:

• Improves decision-making

• Reduces stress

• Prevents costly surprises

• Helps founders move from reactive to proactive

Want Help Determining the Right Level of Support?

If you’re unsure what kind of financial support makes sense for your business today, a short conversation can often bring clarity.

We work with growing businesses to provide bookkeeping, controller, and fractional CFO support and tailored to where they are now and where they’re headed.

Links to Learn More

• Bookkeeping Services

• Outsourced Controller Services

• Fractional CFO Services

• Cash Flow Planning for Entrepreneurs

Frequently Asked Questions (FAQs)

What’s the difference between a bookkeeper, controller, and CFO?

A bookkeeper records transactions and keeps the books up to date.

A controller oversees accuracy, manages the monthly close, and ensures financial reports can be trusted.

A CFO focuses on forward-looking decisions, including forecasting, cash flow planning, and strategic guidance.

Most growing businesses need all three functions at different stages, just not always as

full-time hires.

At what point does a business need a CFO?

There’s no single revenue number, but many businesses begin to benefit from CFO-level support once:

• Financial decisions feel higher stakes

• Cash flow requires forecasting instead of guesswork

• The founder wants help planning ahead, not just reporting the past

This is often when revenue reaches a level where mistakes become expensive, not necessarily when the business is “large.”

Is a fractional CFO only for large or venture-backed companies?

No. Fractional CFO support is commonly used by small and mid-sized businesses that:

• Don’t need (or want) a full-time CFO

• Want strategic financial insight without the overhead

• Are growing and need better planning and visibility

Fractional CFO services are designed to scale with the business.

Can a bookkeeper provide CFO-level advice?

Bookkeepers play an essential role, but their work is generally centered on transaction recording rather than strategic planning. Our firm takes a specialized team approach, assigning professionals to distinct functions, each with a proven track record at their respective level of service. Our factional CFO services are NOT “upscaled bookkeepers.”

CFO-level support involves:

• Interpreting financial data

• Building forecasts and scenarios

• Advising on growth, cash flow, and risk

• Helping founders make informed decisions

These are different skill sets, even though they work best together.

How do I know if I’ve outgrown basic bookkeeping?

Common signs include:

• You don’t fully trust your financial reports

• Cash flow surprises are becoming more frequent

• You’re making decisions without clear numbers

• Financials are always delayed or “still being finalized”

These are normal growth signals, not red flags.

Do small businesses really need financial forecasting?

Forecasting isn’t about predicting the future perfectly, it’s about reducing uncertainty.

Even simple forecasts help business owners:

• Plan hiring decisions

• Understand cash runway

• Prepare for tax obligations

• Make growth decisions with more confidence

Forecasting becomes more valuable as complexity increases.

Do you work with businesses in New Jersey?

Yes. We work with entrepreneurs and growing businesses throughout New Jersey, providing bookkeeping, controller, and fractional CFO support tailored to each stage of growth.

Our approach is designed to support decision-making, not just compliance.

Is this type of financial support industry-specific?

While the underlying financial principles of cash flow, margins, planning, and reporting apply across most businesses, our clients consistently value the depth of experience we bring within their specific industries. Please visit our expertise page to learn more about our industry specialties.