When to call on a CFO: five signals to look at
Cash flow, reporting, financing and responsibilities: five signals to examine before choosing a finance mission, part-time or recruitment.
Co-founder and Fractional CFO
Figures that are difficult to reconcile, decisions without a cash flow scenario or dispersed responsibilities can justify financial reinforcement. This guide helps examine five signals before choosing a targeted assignment, recruitment or Fractional CFO. There is no signal that makes the latter option automatically necessary.
1. You can't explain cash burn
The manager sees his bank balance, but does not know which payments, customer delays or investments explain its evolution. For a startup, burnout and runway must be built on shared definitions, with identified financing hypotheses.
Consider three questions: Is the starting point close to the banks? Are the deadlines known? Who updates the assumptions when a payment is delayed? The time required to find information does not, in itself, constitute a recruitment threshold.
Start by understanding the cash flow, then examine the perimeter of a cash flow forecast if the need concerns dates and scenarios.
2. Numbers come after decisions
The accounts useful for a management review are still provisional or incomplete. Identify missing pieces, unfinished reconciliations and the role of each stakeholder. A difficulty in collection or coordination does not necessarily imply changing accounting firms.
| Question | Useful check |
|---|---|
| What is management expecting? | Decisions to be prepared, figures needed and agreed timetable |
| Where is the delay located? | Parts, invoicing, banking, stocks or validation of entries |
| Who takes over? | Correction manager, firm contact and date of review |
There is no closing deadline presented as a sector standard here. The objective is an achievable schedule with your team, distinguishing provisional figures from validated data.
3. Financing requires defensible hypotheses
A fundraising or a banking meeting requires linking activity, workforce, investments and cash needs. The model must explain its assumptions and the deviations from reality. The manager and the councils remain stakeholders in the preparation.
- What data supports the revenue forecast?
- Which commitments remain funded if a receipt or collection is delayed?
- What documents are missing from the data room and who prepares them?
A mission offundraising support can handle financial preparation. Its timing depends on data and stakeholders; no percentage reduction in time or funding success is promised.
4. The budget does not explain the discrepancies
Your sales are growing, but managers can't explain margin variations, costs incurred, or inventory needs. The subject concerns sources and decisions, not a universal threshold of ten employees.
Choose a few indicators linked to your activity, specify their definition, then compare the results to the budget. A useful review identifies a discrepancy, its explanation, and the action to follow. The outsourced management control presents these deliverables without imposing an identical number of KPIs on all companies.
5. Finance tasks depend too much on the founder
The founder collects the documents, reconciles the files and contacts each participant. Distinguish between administrative tasks, controls and decisions: delegating collection does not require the same skills as arbitrating an investment.
List the tasks over a representative period, their managers and the blocking points. There is no number of hours here that automatically triggers a need for a CFO. Continuity in the event of absence and documentation of access also count.
6. Choose the appropriate reinforcement
| Need | Option to consider | Condition to check |
|---|---|---|
| A specific deliverable or project | Targeted mission | Data, deliverables, responsibilities and end of mission |
| Regular piloting without daily presence | part-time CFO | Agreed availability and coordination with the team |
| Sustainable daily management | Employee CFO | Charge, seniority, recruitment and continuity |
| A temporary relay | Interim CFO | Mandate, written delegations and handover |
The comparison of employed or Fractional CFO helps compare budget and availability. The part-time CFO responds to recurring tracking; the transition responds to a temporary mandate. For a startup or a SaaS, the offer Fractional CFO specifies investor reporting and growth scenarios.
Questions before contacting a firm
What budget should you plan?
€3,000–8,000 excluding VAT/month for recurring Iter plans, depending on scope and profile. Consult Fractional CFO prices; a one-off project is defined separately.
What deadlines should be expected?
Start-up and first deliverables depend on the availability of profile, access and data. No handover within 48 hours or deployment within two weeks is guaranteed.
Can we keep our accountant?
Yes, if the distribution of work and contacts is clear. The CFO does not automatically replace accounting production.
What recurring commitment?
Without minimum commitment period, can be canceled with 30 days' notice. Responsibilities and possible additional projects are formalized in the contract. To prepare for the first exchange, list the upcoming decisions, tools, stakeholders and deadlines. Present my financial needs.
