The finance function ladder
- Stage 0 (pre-revenue / under £250K): founder + bookkeeper + accountant for year-end.
- Stage 1 (£250K-£1M): bookkeeper, monthly cloud accounting (Xero/QuickBooks), accountant, ad-hoc CFO advice.
- Stage 2 (£1M-£3M): Financial Controller (in-house or outsourced) + fractional CFO 1-2 days/month.
- Stage 3 (£3M-£10M): FC + fractional CFO 2-4 days/month, or outsourced CFO firm.
- Stage 4 (£10M+): full-time CFO + finance team underneath.
Signs you actually need a CFO (not an FC)
- You're 6-12 months from a fundraise, acquisition, or sale.
- You're making strategic spend decisions (£100K+) without confidence in the numbers.
- Your board (or you) need monthly KPI reporting that explains why, not just what.
- Cash management is operationally tense and needs a 13-week forecast you trust.
- You're considering R&D tax claims, EIS/SEIS, EMI scheme, or international expansion — strategic finance decisions.
Signs you don't yet
- Your finance pain is operational (invoices going out late, suppliers chasing) — that's an FC or better bookkeeper.
- Your data is messy — software and process improvement first; CFO later.
- Revenue is volatile and under £1M — the cost-benefit usually doesn't stack up.
FAQ
Frequently asked questions
What's the difference between a CFO and a Financial Controller?+
An FC owns the numbers — accuracy, timeliness, statutory compliance, monthly close. A CFO owns the meaning — strategy, fundraising, board narrative, scenario decisions. SMEs sometimes blend the two roles, but at scale they're distinct.
Can my accountant do CFO work?+
Some can. Most accountancy firms focus on compliance and don't have CFO-grade strategic experience. If yours does and you have a good relationship, ask. If not, a fractional CFO is the usual route.
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