At some point, every growing business faces this question: do we need a CFO? And if so, should we hire one full-time or outsource the role? The answer depends on where your business is today and where it’s heading.
Signs You Need CFO-Level Support
Not every business needs a CFO, but most growing businesses reach a point where they need more than a bookkeeper or accountant can provide. Here are the signs:
You’re Making Decisions Without Financial Data
If you’re pricing products, hiring staff, or entering new markets based on gut feel rather than financial analysis, you need CFO-level support. A CFO brings the financial modelling and analysis capabilities that turn instinct into informed strategy.
You’re Raising Capital
Whether it’s a bank facility, angel investment, or Series A round, the fundraising process requires financial models, projections, data rooms, and the ability to answer tough financial questions from sophisticated investors. If you don’t have someone who can lead this process, you’re at a significant disadvantage.
Your Cash Flow Is Getting Complex
As businesses grow, cash flow becomes harder to manage. Multiple revenue streams, varying payment terms, seasonal fluctuations, and increasing fixed costs all create complexity. A CFO builds the systems and forecasts to manage this proactively rather than reactively.
You’re Expanding into New Markets
Expanding into a new country or jurisdiction brings tax implications, regulatory requirements, and structural decisions that have long-term financial consequences. A CFO helps you navigate this strategically.
You’re Preparing for an Exit
If you’re thinking about selling your business or bringing in a strategic partner, the preparation typically starts 12–18 months before the transaction. A CFO leads this process — cleaning up financials, building the narrative, and positioning the business for maximum value.
Full-Time vs. Outsourced: A Comparison
Full-Time CFO
A full-time CFO makes sense when your business has reached a level of complexity and scale that requires daily financial leadership. This is typically at AED 30–50 million in annual revenue, or when you have multiple business units, complex operations, or are in a highly regulated industry.
The cost is significant — a qualified CFO in the UAE typically commands AED 35,000–60,000 per month, plus benefits. But for the right business, the value they create far exceeds their cost.
Outsourced (Fractional) CFO
An outsourced CFO provides the same strategic financial expertise on a part-time or project basis. This model works well for businesses that need CFO-level thinking but aren’t ready for — or can’t justify — the cost of a full-time hire.
Typical scenarios include startups and SMEs with revenue under AED 30 million, businesses going through a specific event such as fundraising, restructuring, or an audit, companies that need interim support while searching for a permanent CFO, or organisations that want ongoing strategic financial guidance without the overhead of a full-time executive.
At Bayswater Financials, our outsourced CFO engagements typically range from a few days per month to a dedicated part-time arrangement, depending on the client’s needs.
How to Decide
Ask yourself these questions:
- Do I need CFO-level input every day, or periodically?
- Can I clearly define the scope of work for a full-time role?
- Is my business complex enough to justify a full-time salary?
- Am I going through a specific event that needs temporary expertise?
If you need daily involvement and have the complexity to justify it, hire full-time. If you need strategic guidance but on a flexible basis, outsource.
The Hybrid Approach
Many of our clients start with an outsourced CFO arrangement and transition to a full-time hire as they grow. The outsourced CFO helps build the financial infrastructure, processes, and reporting that the eventual full-time hire will manage.
This approach lets you benefit from senior expertise immediately without committing to a full-time cost before you’re ready.
Making the Right Choice
The worst option is doing nothing. If your business has outgrown what your accountant or bookkeeper can provide, you need CFO-level support in some form. The format — full-time or outsourced — is secondary to having the capability in place.
If you’re not sure which model is right for your business, we’re happy to discuss your situation and help you figure out the best path forward.