Many smaller businesses start out with an accountant who grows alongside them. They’re competent, committed, and deeply familiar with the business. As the company scales, the demands on the finance function change, and the skills that were sufficient in the early years may no longer be enough.
It’s a bit like building a house. You can do it without an architect and still end up with a roof over your head, but will it be structurally sound, optimised for your needs, and attractive to the right buyers when you want to sell? A CFO is the architect, designing and strengthening the financial structure so the business can grow with stability and purpose.
Why Scaling Changes the Finance Game
In the early days, finance is often about people and systems: paying suppliers, issuing invoices, and managing payroll. As you start hitting serious numbers, say, moving from R300 million to R500 million in turnover, the stakes rise. Scaling “sucks up money and eats capital,” and you need someone who can manage that complexity.
CFOs are no longer confined to financial housekeeping; they’re strategic business partners, often referred to as the “CEO-in-waiting,” responsible for shaping company strategy, managing risk, and driving growth initiatives. They understand the entire chain from supply to customer, can benchmark your performance, value the business realistically, and build a strategy around both opportunities and risks. They also know when to say no, acting as the “handbrake” that prevents costly missteps.
7 Signs Your Business Is Ready for a CFO
Research shows that fast growth, cash flow strain, and founders spending too much time on finance rather than growth are clear signs it’s time to consider a CFO, or even a fractional CEO that provides services on a part-time or contract basis.
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Your cash flow is unpredictable or under pressure
Tying up millions in stock without a sale plan can cripple growth. A CFO builds processes to prevent these capital traps.
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You don’t know your true valuation
Without benchmarking against competitors, granular gross profit metrics, and a clear view of payroll, you’re making strategic decisions in the dark.
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You’re making big strategic moves without financial science
Whether it’s expanding into new markets or buying another business, CFOs ensure these decisions are based on hard data, not gut feel.
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There’s no formal risk mitigation process
Entrepreneurs often shy away from confronting risks. A CFO quantifies them and builds strategies to reduce exposure.
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You’re mixing short- and long-term capital
A CFO separates operational funding from capital for acquisitions or long-term investments, preventing liquidity crises.
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Your accountant is stretched thin
They’re handling the day-to-day but can’t engage bankers, lawyers, and investors at the strategic level that a CFO can.
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You’re planning for capital raising, acquisition, or exit
A CFO prepares the financial function years in advance so the process is smoother, valuations stronger, and emotions reduced.
Beyond the Numbers: What a CFO Really Does
A good CFO is not just a cost-cutter; they monitor overheads, ensure payroll is sustainable, and help introduce variable cost models, such as outsourcing functions, to provide flexibility. They provide data-driven oversight, better risk controls, and improved forecasting capacity.
Fractional CFOs also bring objectivity, cross-industry know-how, and professional networks that help businesses respond quickly to opportunities. A study found that 85% of SMEs with CFO support (either full-time or fractional) reported an improved capacity to plan and forecast performance.
They also align the owner’s personal wealth goals with the company’s funding model, build valuable networks, and bring in other professionals, from lawyers to bankers, at the right time.
Making the Transition
Sometimes there’s resistance to bringing in a CFO, especially from long-serving staff who may feel threatened. The reality is that a CFO doesn’t replace them, they complement them, giving oversight and strategic direction that enables the whole leadership and finance team to work more effectively.
If you’re already wondering whether your business needs a CFO, you’re probably ready for the conversation. The sooner you put the right financial architecture in place, the better positioned you are to scale with confidence.
