As a business grows, there often comes a point where the finance function needs more senior support. The challenge is knowing what level of support the business actually needs.
Some organisations think they need a CFO when a hands-on Head of Finance would be more suitable. Others wait too long to appoint a Finance Director or CFO, and only recognise the gap when growth, cashflow, funding or reporting becomes more complex.
Getting the level right matters. Hiring too senior can mean paying for experience the business does not yet need or appointing someone who is less involved in the day-to-day detail than required. Hiring too junior can leave the leadership team without the strategic financial advice it needs at an important stage of growth.
The exact responsibilities will vary depending on the size, structure and stage of the business. In some organisations, these job titles may describe very similar roles. However, there are some broad differences.
A Head of Finance is usually focused on the operational running of the finance function. They may manage the finance team, improve processes, oversee reporting, strengthen controls and make sure the business has accurate financial information to support decision-making.
A Finance Director will often combine operational oversight with more strategic input. They may still stay close to the detail, but they will also advise senior leaders, support business planning, review financial performance and help shape commercial decisions.
A CFO is usually a more strategic and external-facing appointment. They are often involved in conversations with banks, investors, private equity firms and other key stakeholders. A CFO-level hire may be needed when the business is preparing for significant growth, investment, acquisition, restructure or another major change.
The right time depends on where the business is now, where it is heading and what pressure the finance function is under.
Many growing businesses start with an Office Manager and/or a Bookkeeper who has developed with the company and taken on more responsibility as the business has grown. That can work well for a period of time. However, as turnover, headcount, reporting requirements and commercial complexity increase, the business may need a more senior finance professional who can look beyond the accounts and advise on future decisions.
A common example is a business that wins a significant volume of new work but does not yet have the cashflow, systems or forecasting in place to support delivery. A less experienced finance professional may manage the day-to-day accounts, but they may not have the experience to forecast cash requirements, assess risk, challenge assumptions or advise the leadership team on the next steps.
External stakeholders can also influence the decision. A bank may want greater confidence in the financial leadership of the business before extending funding. A private equity investor may expect CFO-level support to protect their investment, improve reporting and provide stronger financial control.
In these situations, the question is not just “what job title do we need?” It is “what level of financial leadership does the business need to move forward with confidence?”
There is no one-size-fits-all answer. The right finance hire depends on your current team structure, growth plans, funding requirements, internal capability and the level of commercial support your leadership team needs.
At Sellick Partnership, we take a consultative approach to senior finance recruitment. We work with employers to understand the real gap in their finance function before helping them shape the right role. That may be a hands-on Head of Finance, a commercially focused Finance Director or a strategic CFO.
If you are unsure what level of finance support your business needs, our specialist Finance & Accountancy recruitment team can offer impartial advice and help you understand the market before you go out to hire.
Speak to our team today.
