If you’re scaling your business, at some point, you can’t manage the finances yourself. But when is the right time to hire finance support? And what does that look like at each stage?
- One of the most common questions I get from founders is:
- At what stage should I increase my finance team?
- Should I hire in-house or outsource?
- What should my finance department even look like?
I get why this is confusing. At the early stage, you’re wearing all the hats—founder, CEO, operations, sales, and yes, finance.
But as you grow, your finance function needs to evolve. The problem? Hiring too soon wastes cash, but waiting too long can slow your growth or kill a fundraise.
So, to help you, I’ve created a finance function guide based on your startup’s headcount.
A quick note: Every business is different. Some companies bring in finance leadership earlier; others stretch it out longer. This is a general guide, not a rigid rulebook.
But if you’re not sure where to start, this breakdown will help.
Stage 1: 0 – 5 Headcount → DIY Finance
Best for: Solopreneurs, early-stage consultants, small service-based businesses
What you need:
- Handle your own bookkeeping (use Xero or QuickBooks)
- Keep track of invoices and expenses manually each month
- Hire an annual tax accountant (you don’t need to do this yourself, trust me)
Warning signs you need help:
If numbers make your head spin or bookkeeping takes up too much time, move to the next stage sooner rather than later.
Stage 2: Up to 20 Headcount → Outsource Bookkeeping
Best for: Growing startups with regular transactions, VAT/GST, payroll, and expenses
What you need:
- Outsource your bookkeeping – keeping this in-house is a waste of time
- Hire an accountant for tax and compliance (they can be separate from your bookkeeper) and in general, you only need them annually.
- Get payroll sorted – don’t try to manage this manually
Not sure how to find a good bookkeeper? I have a Bookkeeping Guide that walks you through:
✅ How to find the right bookkeeper
✅ Red flags to watch for
✅ What tasks they should handle vs. what should stay in-house
Stage 3: 20+ Headcount → Bring in a Fractional CFO
Best for: Startups with real growth, revenue, or fundraising plans
What you need:
- Keep bookkeeping outsourced (unless super complex)
- Hire a Fractional CFO – they’ll manage finance, fundraising, and strategy
- Consider hiring a Finance Manager or Analyst to support day-to-day tasks
Stage 4: 50+ Headcount → Hire a Full-Time Finance Leader
Best for: Scaling companies, post-Series B+, high-growth startups
What you need:
- Hire a Finance Director or CFO in-house
- Build out your finance team (FP&A, accounting, compliance)
- Upgrade finance systems for efficiency & automation
By this stage, your investors, board, and leadership team will expect a strong in-house finance function.
Most founders wait too long to bring in finance support, only to scramble when cash flow is tight, or investors ask for reports they don’t have.
If you’re unsure what you need, I can help.
Drop a comment or contact us now, and we can figure out the right setup for your business.