Introduction: The Fork in the Road at $10M–$25M

If your company is in the $10M–$25M range, chances are you’ve asked the question:
“Is it time to hire a full-time CFO?”

It feels like a milestone. Bringing in a C-suite finance leader signals maturity. But here’s the problem: too many companies make that hire prematurely—locking in a $250K+ salary (often with benefits, equity, and bonuses) before the role can deliver a return.

The result? An expensive executive who spends 70% of their time managing reporting, clean-up, and compliance—rather than driving growth.

1. What a CFO Should Actually Do

A CFO isn’t just a senior accountant. At the mid-market level, the role is meant to:

• Translate financial data into strategic insight

• Build forward-looking forecasts and scenario plans

• Align capital allocation with growth priorities

• Prepare the business for outside investors, lenders, or buyers

• Coach the CEO and leadership team through decisions

Research Insight: According to McKinsey’s CFO study (2022), only 37% of CFOs at mid-sized companies are seen as true strategic partners—the rest remain stuck in backward-looking reporting roles.

Takeaway: If your CFO isn’t shaping decisions, you don’t have a CFO. You have a highly paid controller with a new title.

2. The Cost of Hiring Too Early

Salary Benchmark:
Korn Ferry’s 2023 Executive Pay Guide puts the median base salary for CFOs in companies $10M–$25M at $250K–$300K, excluding bonuses and benefits.

All-in Cost:
When you add payroll taxes, healthcare, retirement match, and bonuses, the true cost can exceed $350K/year.

The Risk:
If the company’s systems and team aren’t ready, much of that talent is wasted. CFOs spend time plugging operational holes instead of delivering strategy.

Case Example:
A $15M agency hired a CFO at $260K. Within six months, the CEO realized the CFO was spending 80% of their time cleaning up reporting processes. The strategic roadmap the CEO expected never materialized. After parting ways, they engaged Growth CFO to upskill their controller and install systems—at 40% of the cost.

3. Fractional vs. Full-Time: Cost and Control

Fractional CFO / Strategic Finance Team (Growth CFO model):

• Cost: $60K–$150K annually (variable, based on scope)

• Team Structure: 3-person team (CFO strategist, ops/systems pro, financial analyst)

• Value: Covers reporting and strategy, installs scalable systems, coaches leadership, ROI guaranteed

Full-Time CFO:

• Cost: $250K–$350K all-in

• Team Structure: One person, typically reliant on controller/accounting staff for execution

• Value: Depends heavily on individual skillset and how mature your finance function already is
  
  Research Insight: PwC’s 2023 Finance Effectiveness Benchmark found that companies using hybrid/outsourced finance leadership models achieved cost efficiency 35% better than peers—while still achieving strategic outcomes.

Takeaway: Unless you’re $50M+ or preparing for IPO/large-scale capital raise, a fractional model often gives you more horsepower at less risk.

4. When a Full-Time CFO Does Make Sense

There are times when a $250K+ hire is the right move:

• Preparing for a major private equity raise or IPO

• Managing complex multi-entity, multi-national operations

• Leading an aggressive M&A roll-up strategy

• Needing dedicated in-house leadership for investor relations and board management

But for most $10M–$25M firms, these situations aren’t the norm.

5. How to Decide: The CFO Readiness Test

Ask yourself:

• Do I need someone to improve reporting, or to drive strategy?

• Can my finance team close books within 10 days of month-end?

• Do I have project-level or client-level profitability data?

• Is budgeting dynamic and rolling—or an annual ritual that gets ignored?

If the answer is “no” to these, a $250K hire won’t solve your problem. You need a system and a support team first.

The Growth CFO Alternative

At Growth CFO, we don’t just drop in one expensive hire. We bring a 3-person team that:

• Reviews 1,260 financial data points in the first 5 weeks

• Installs reporting, dashboards, and cash forecasts that scale

• Coaches your controller or finance lead to operate at a higher level

• Guarantees ROI: if we don’t find six figures in value in 90 days, you don’t pay

Final Thought

Hiring a CFO too early is like putting a Formula 1 driver in a car with no engine. You’ll pay top dollar, but they can’t do what you expect.

Before you sign a $250K offer letter, make sure you actually know what you need. Often, the smarter play is to install the system, team, and strategic clarity first—and then decide if a full-time CFO makes sense.