When Should SaaS Startups Make Their First Finance Hire?

Let’s be honest, no one launches a SaaS startup because they’re itching to spend late nights rifling through their bank transactions. But sooner or later, every founder reaches that moment of realisation: finance is taking up far too much of their time. Fundraising, revenue recognition, and cash flow forecasting aren’t just admin tasks. They’re an important part of scaling successfully. So, when’s the right time to hire your first finance professional? And what kind of hire should you be making? Let’s break it down.

Signs You Need a Finance Hire

Many startups get by with an outsourced bookkeeper and the occasional accountant in the early days, but as you grow, finance complexity increases. There are some clear signs that it’s time to bring in in-house expertise

Revenue Milestones

Once you cross the £1M ARR mark, cash flows become more unpredictable, forecasting demands increase, and investor reporting requirements become more detailed. You need someone who can help make sense of the numbers and tell the story behind them.

Funding Rounds

A part-time CFO might suffice for pre-seed and Series A, but after that, investors expect more sophisticated financial operations. According to the Tech CFO Survey 2024, 63% of CFOs are confident in their ability to fundraise in 2024/25, highlighting the need for strong financial leadership in scaling companies.

Business Complexity

A simple subscription model is one thing, but once you start adding enterprise deals, usage-based pricing, or multiple product lines, financial clarity is an essential. Mistakes in revenue recognition can lead to major compliance issues for businesses.

International Expansion

If you’re hiring teams abroad or selling in multiple currencies, regulatory complexity increases dramatically. A finance professional can help you stay compliant across tax jurisdictions and manage foreign exchange risk more effectively.

Draining Time for Founders

If you find yourself spending more time on financial admin than product or growth, it’s a clear sign that you’re holding back your own company. Founders should be focused on strategy, not spreadsheets.

Choosing Your First Finance Hire

Different growth stages call for different types of finance professionals. Here’s the main points to consider when it comes to hiring the right person at the right time.

Fractional CFO (Pre-Series A, Revenue < £2.5M)

A fractional CFO is a great way to get senior financial leadership without committing to a full-time salary. They typically help with fundraising, investor relations, high-level forecasting, and financial modelling. Expect to pay between £1,000-£5,000 per month, depending on their involvement.

Financial Controller (Series A, Revenue £2.5M–£4M)

A Financial Controller is more hands-on, focusing on building financial processes, reporting structures, and cash management. This role is perfect when you need reliable financial operations but aren’t quite ready for a strategic CFO. Pay ranges from £85,000 to £110,000 per year, according to the Tech CFO Survey 2024.

Head of Finance or Finance Director (Series B+, Revenue £4M+)

When your company starts scaling aggressively, you need a finance leader who can build a team, oversee financial planning & analysis (FP&A), and partner with leadership on strategic decision-making. Salaries for these roles typically start at £120,000+ plus equity, where most CFOs in later-stage companies earn between £120,000-£180,000, with nearly half earning more than £160,000.

Most startups follow a natural progression: hiring a Financial Controller first, followed by a Finance Director or CFO as they scale.

Making the Call

The right finance hire should pay for themselves multiple times over by improving efficiency, reducing financial risk, and enabling smarter decision-making. So don’t let the short-term financial implications hold you back. Waiting too long can result in cash flow blind spots, compliance headaches, and poorly managed fundraising rounds.

But bear in mind that finance professionals aren’t just number-crunchers. They need to work seamlessly with your product, sales, and marketing teams to make sure that your financial strategy aligns with business goals. As a result, today’s CFOs oversee far more than just finance. The Tech CFO Survey 2024 found that 75% of CFOs manage additional departments like legal, HR, and compliance, so look for someone who can grow into a broader leadership role.

The Cost of Waiting

Postponing your first finance hire can be an expensive mistake that can lead to:

• Poor financial planning that results in unexpected cash crunches.
• Unprepared due diligence, making fundraising more difficult.
• Compliance risks, especially as tax and reporting requirements increase.
• Inefficient resource allocation due to a lack of financial insights.

The survey also found that 91% of CFOs plan to raise basic salaries in 2024, reinforcing the demand for strong finance leadership. The longer you wait, the harder (and more expensive) it might be to hire the right person.

The Bottom Line

The timing of your first finance hire is key. If you’re pre-Series A, a fractional CFO can provide strategic guidance without the full-time commitment. As you scale past £2.5M ARR, a Financial Controller becomes essential. And once you hit £4M+ ARR, it’s time to invest in a Finance Director or CFO to drive long-term strategy.

Hiring the right finance professional is about more than just about keeping the books in order. It’s about making sure your business is set up to scale efficiently and sustainably. Need help finding the right finance professional for your start-up? Harmonic Finance specialises in placing top finance talent in high-growth SaaS companies. For guidance on your first finance hire, reach out to Thomas at [email protected].