Hiring a finance manager represents a significant investment for growing Australian businesses, typically occurring between $5 million and $20 million in annual revenue when bookkeepers and external accountants no longer provide sufficient financial leadership. Understanding the complete cost beyond base salary is essential for budget planning and evaluating whether full-time hiring is the right decision.
The true cost to hire a finance manager in Australia ranges from $145,000 to $210,000 annually when including salary, superannuation, leave entitlements, recruitment fees, software, and overhead. This figure significantly exceeds the quoted salary of $100,000 to $140,000, catching many business owners unprepared for the total financial commitment.
This guide breaks down every component of finance manager hiring costs, from initial recruitment through ongoing employment, and compares alternatives including fractional finance managers and embedded finance services.
Finance manager salaries in Australia vary based on location, experience, industry, and business size, with significant variation across markets.
Sydney and Melbourne finance managers command the highest salaries at $120,000 to $140,000 annually for candidates with 7 to 10 years experience managing bookkeeping teams, producing management reports, and overseeing budgeting processes. Brisbane and Perth finance managers earn $110,000 to $130,000 for equivalent roles, approximately 8 to 10 percent below Sydney rates. Adelaide and Hobart finance managers earn $100,000 to $120,000, about 15 to 17 percent below Sydney. Regional areas pay $95,000 to $115,000, roughly 20 to 22 percent below metro rates.
Melbourne Technology Company at $12 million revenue hires a finance manager at $128,000 annually to oversee bookkeeper, manage monthly reporting, coordinate annual budgets, and provide financial analysis for strategic decisions. An equivalent role in regional Victoria pays $105,000, a $23,000 or 18 percent difference for the same responsibilities.
Graduate finance professionals with 3 to 5 years experience transitioning into finance manager roles earn $85,000 to $105,000, typically managing smaller teams with simpler reporting requirements. Mid-level finance managers with 5 to 8 years experience earn $100,000 to $125,000, handling full team oversight, complex budgeting, and system implementations. Senior finance managers with 8 plus years experience and exposure to capital raising or M&A earn $125,000 to $150,000, often operating as de facto CFOs for mid-sized businesses.
Sydney Retail Chain hires a senior finance manager at $138,000 who previously managed finance teams for a $50 million retailer, bringing expertise in multi-location reporting, inventory management systems, and retail-specific KPIs worth the 15 percent premium over less experienced candidates.
Technology and SaaS companies pay 10 to 20 percent premiums for finance managers familiar with subscription metrics, unit economics, and investor reporting, typically $130,000 to $155,000 in Sydney. Professional services firms pay market rates of $115,000 to $135,000 for finance managers skilled in project-based accounting and revenue recognition. Manufacturing and distribution businesses pay market rates of $110,000 to $130,000 with focus on inventory management and job costing. Retail and hospitality sectors typically pay 5 to 10 percent below market at $105,000 to $125,000 due to lower margins.
Brisbane SaaS Startup at $8 million revenue pays $142,000 for a finance manager experienced with SaaS metrics including monthly recurring revenue, customer acquisition cost, and lifetime value, compared to market rate of $120,000 for a generalist finance manager. The $22,000 premium reflects specialized knowledge critical to their investor reporting and capital raising objectives.
Australian employers must pay superannuation and various statutory costs on top of base salaries, adding 12 to 15 percent to employment expenses.
The superannuation guarantee rate is 11.5 percent of ordinary time earnings, adding $11,500 to $16,100 annually for finance managers earning $100,000 to $140,000. Superannuation is paid quarterly and cannot be included in salary packages without reducing take-home pay below agreed base salary amounts.
Perth Manufacturing Business hiring a finance manager at $125,000 annually pays $14,375 superannuation, increasing total cash outlay to $139,375 per year or $11,615 per month before other oncosts.
Workers compensation insurance rates vary by state and industry classification but typically range from 1 to 3 percent of wages for office-based finance roles. Low-risk classifications in New South Wales might pay 1.2 percent or $1,200 to $1,680 annually, while higher-risk states like Victoria might pay 2.5 percent or $2,500 to $3,500 annually.
Payroll tax applies once total wages exceed state thresholds ranging from $700,000 in Victoria to $2 million in Western Australia. Rates vary from 4.75 percent in New South Wales and Queensland to 6.85 percent in Victoria for wages above thresholds.
For businesses already above payroll tax thresholds, hiring a $125,000 finance manager adds $5,938 annually in New South Wales at 4.75 percent or $8,563 annually in Victoria at 6.85 percent.
Adelaide Services Company at $1.8 million annual payroll currently under South Australia's $1.7 million threshold would trigger payroll tax obligations by hiring a $125,000 finance manager, adding $4,750 in payroll tax on the $100,000 portion above the threshold at 4.95 percent rate.
Annual leave, sick leave, public holidays, and long service leave represent significant costs beyond base salary, adding 17 to 22 percent to employment expenses.
Finance managers receive 4 weeks annual leave valued at 7.7 percent of base salary, worth $7,700 to $10,780 annually for $100,000 to $140,000 earners. Leave accrues continuously and must be paid out on termination, representing a real liability on the balance sheet.
During leave periods, businesses must either redistribute finance manager responsibilities to other staff reducing their productivity, hire temporary contractors at $150 to $300 per hour or $1,200 to $2,400 daily, or delay critical financial tasks until the manager returns. Effective leave coverage costs an additional 30 to 50 percent of leave value, adding $2,300 to $5,390 annually.
Finance managers receive 10 days personal and sick leave annually valued at 3.8 percent of base salary, worth $3,800 to $5,320 per year. While not always taken, this represents an ongoing liability and productivity cost when used.
Australia has 11 public holidays annually, with some states adding additional days. Public holidays represent 4.2 percent of working days, valued at $4,200 to $5,880 annually in lost productivity for salaried finance managers.
Long service leave accrues after 7 to 10 years continuous service depending on state, typically at 0.87 weeks per year. This adds approximately 1.7 percent to ongoing employment costs, or $1,700 to $2,380 annually for finance managers expected to remain long-term.
Combined leave entitlements total 17.4 percent of base salary, worth $17,400 to $24,360 annually, before considering coverage costs during absences.
Finding, hiring, and training a finance manager involves substantial upfront investment, typically $25,000 to $45,000 for senior finance roles.
Recruitment agencies charge 15 to 25 percent of first year salary for permanent finance manager placements, translating to $15,000 to $35,000 for $100,000 to $140,000 roles. Executive recruiters for senior finance positions may charge 25 to 30 percent or $30,000 to $42,000.
Sydney Property Developer pays $31,500 recruitment fee at 22.5 percent of $140,000 salary to secure an experienced finance manager with construction industry knowledge and project accounting expertise difficult to find through standard job boards.
Businesses managing recruitment internally incur costs including job board advertising on SEEK or LinkedIn at $500 to $1,500 per campaign, applicant tracking system subscriptions at $100 to $300 monthly during active hiring, and senior management interview time worth $3,000 to $8,000 in lost productivity reviewing applications, conducting interviews, and negotiating offers.
Internal recruitment saves agency fees but takes 60 to 90 days on average compared to 30 to 45 days with recruiters, extending vacancy costs.
New finance managers require 3 to 6 months to reach full productivity, incurring reduced output valued at $15,000 to $35,000, trainer time from business owner or CFO worth $3,000 to $8,000, system access and training on accounting software, reporting tools, and internal processes worth $1,000 to $3,000, and errors or rework during learning period worth $2,000 to $6,000.
Brisbane Manufacturing Company budgets $28,000 for their finance manager's first 6 months including 40 percent reduced productivity valued at $21,000, owner time training worth $5,000, and Xero and Power BI training worth $2,000.
Total recruitment and onboarding costs average $30,000 to $60,000, often amortized over expected 3 to 5 year tenure, adding $6,000 to $12,000 annually to employment costs.
Finance managers require dedicated software, hardware, and workspace, adding $8,000 to $18,000 annually to employment costs.
Accounting software like Xero or MYOB costs $50 to $150 per user monthly or $600 to $1,800 annually for finance manager access. Business intelligence and reporting tools like Power BI, Spotlight Reporting, or Fathom cost $100 to $500 per user monthly or $1,200 to $6,000 annually. Consolidation and planning software for multi-entity businesses costs $200 to $800 monthly or $2,400 to $9,600 annually. Budget management tools cost $50 to $200 monthly or $600 to $2,400 annually.
Total software costs for a finance manager with full reporting capability range from $4,800 to $19,800 annually, with typical mid-market implementations at $8,000 to $12,000.
Finance managers require capable computers with dual monitors for spreadsheet and reporting work, costing $2,500 to $4,000 upfront. Depreciated over 3 to 4 years, hardware costs $625 to $1,333 annually plus $300 to $500 for replacement reserves and repairs.
Office space in metro areas costs $500 to $1,200 per square metre annually including base rent, outgoings, utilities, and fit-out. Finance managers typically require 10 to 15 square metres, costing $5,000 to $18,000 annually in Sydney CBD, $4,000 to $12,000 in suburban locations, or $2,500 to $8,000 in regional areas.
Remote or hybrid finance managers reduce office costs but may require home office allowances at $50 to $100 monthly or $600 to $1,200 annually.
Canberra Services Business provides dedicated office space for their finance manager in a suburban location at $7,200 annually for 12 square metres at $600 per square metre, plus $3,500 in workstation setup including desk, ergonomic chair, and filing storage.
Finance managers require ongoing professional development and industry memberships to maintain skills and credentials, costing $3,000 to $8,000 annually.
CPA Australia membership costs $800 to $1,200 annually depending on designation level. Chartered Accountants Australia and New Zealand membership costs $900 to $1,500 annually. These memberships are typically employer-paid as they maintain the finance manager's professional currency and credibility.
CPD requirements mandate 20 to 40 hours annually of structured learning through courses, seminars, and conferences. Typical CPD costs include industry conferences at $800 to $2,500 per event, technical training courses at $500 to $1,500 per course, online learning subscriptions at $300 to $800 annually, and webinars and workshops at $200 to $600 annually.
Sydney Retail Chain budgets $4,200 annually for their finance manager's professional development including CPA membership at $1,100, retail finance conference at $1,800, Xero advanced certification at $600, and Power BI training at $700.
Finance managers benefit from industry publications, research subscriptions, and technical references costing $500 to $1,500 annually for services like Australian Financial Review, Tax and Super Australia, and accounting technical libraries.
Finance managers require oversight, performance management, and strategic direction from business owners or CFOs, representing hidden productivity costs.
Business owners typically spend 3 to 8 hours monthly managing finance managers including weekly check-ins, monthly performance reviews, strategic planning sessions, conflict resolution, and professional development planning. For owner-managers with opportunity cost of $200 to $400 per hour, this represents $7,200 to $38,400 annually in diverted attention.
Perth Technology Company's CEO spends 5 hours monthly with their finance manager reviewing forecasts, discussing system improvements, and planning capital raising activities. At $350 per hour opportunity cost, this represents $21,000 annually in management overhead beyond the finance manager's direct employment costs.
Combining all cost components, the true cost to hire a finance manager in Australia ranges from $145,000 to $210,000 annually, significantly exceeding quoted base salaries.
For a finance manager at $120,000 base salary in Melbourne, total costs include base salary at $120,000, superannuation at 11.5 percent worth $13,800, leave entitlements at 17.4 percent worth $20,880, workers compensation at 2 percent worth $2,400, recruitment amortized over 4 years worth $7,500, software and technology worth $10,000, office space worth $8,000, professional development worth $4,000, and management overhead worth $15,000, totalling $201,580 annually or $16,798 monthly.
This represents 68 percent above base salary, often surprising business owners budgeting only for the quoted $120,000 figure.
Adelaide Manufacturing Company hiring their first finance manager at $115,000 discovers total year one costs of $183,400 including $30,000 recruitment fee, $8,000 onboarding costs, and all ongoing employment expenses. They amortize recruitment over 4 years, reducing ongoing annual cost to $175,900 or $14,658 monthly.
Despite high costs, hiring a full-time finance manager makes sense in specific circumstances.
Hire a finance manager when revenue consistently exceeds $8 million to $10 million requiring dedicated financial oversight beyond bookkeeper capability, complexity demands full-time attention including multi-entity consolidation, detailed variance analysis, or complex inventory management, growth plans require sophisticated budgeting, forecasting, and capital planning, team oversight is needed to manage growing finance staff including bookkeepers and accounts personnel, or when finance drives competitive advantage through tight working capital management or pricing optimization.
Brisbane Logistics Company at $15 million revenue hires a finance manager at $125,000 to manage 2 bookkeepers, implement job costing across 50 projects monthly, produce weekly cash flow forecasts, and coordinate annual budget process across 4 divisions. The $172,000 total cost is justified by improved cash management saving $200,000 in reduced overdraft usage and better project profitability tracking.
Many businesses below $15 million revenue find alternatives more cost-effective than full-time finance manager hires.
Upgrade bookkeeper to senior level at $75,000 to $90,000 annually, handling transaction processing and basic reporting. Engage fractional CFO at $3,000 to $6,000 monthly for 1 to 1.5 days weekly providing strategic oversight, management reporting guidance, and financial leadership.
Total cost is $111,000 to $162,000 annually, saving $15,000 to $60,000 compared to full-time finance manager while accessing CFO-level expertise for strategic decisions.
Engage integrated finance service like Scale Suite providing bookkeeping, management accounting, and CFO advisory in fixed monthly packages. This delivers equivalent or superior outcomes to finance manager at 35 to 65 percent of cost, with no recruitment risk, faster implementation, and broader expertise across multiple team members.
Perth Services Business at $9 million revenue compares hiring finance manager at $173,000 annually against embedded finance service at $4,200 monthly or $50,400 annually, saving $122,600 while accessing senior expertise unavailable in a single mid-level hire.
Hire experienced finance manager 2 to 3 days weekly at $60,000 to $90,000 annually plus oncosts totalling $75,000 to $115,000, suitable for businesses needing strategic finance oversight without full-time requirement.
This works well when finance manager manages external bookkeeping team rather than internal staff, focusing time on analysis and planning.
Many businesses make costly errors when hiring finance managers.
Underestimating total costs by budgeting only base salary without accounting for 40 to 70 percent oncosts, leading to budget overruns. Hiring too early before business complexity justifies full-time role, paying $170,000 for $50,000 worth of value. Prioritizing low salary over experience, hiring $95,000 junior manager requiring extensive training and making costly errors versus $130,000 experienced manager delivering immediate value. Unclear role definition mixing bookkeeping tasks with strategic work, preventing focus on high-value activities. Insufficient management capacity to oversee finance manager, resulting in productivity below potential.
Sydney Retail Business hires finance manager at $108,000 expecting them to handle bookkeeping transactions plus management reporting. The manager spends 60 percent of time on low-value data entry, delivering only $65,000 of strategic value from a $158,000 total cost role. They later hire separate bookkeeper for $75,000 and redefine finance manager role, improving total value delivery despite higher combined costs.
The true cost to hire a finance manager in Australia ranges from $145,000 to $210,000 annually including base salary of $100,000 to $140,000, superannuation at 11.5 percent, leave entitlements at 17 to 22 percent, recruitment fees of $15,000 to $35,000 amortized over 3 to 5 years, software and technology at $8,000 to $18,000, professional development at $3,000 to $8,000, and management overhead.
Finance manager base salaries in Australia average $100,000 to $140,000 annually depending on location and experience. Sydney and Melbourne pay $120,000 to $140,000, Brisbane and Perth pay $110,000 to $130,000, and regional areas pay $95,000 to $115,000. Including all oncosts, total employment cost is $145,000 to $210,000 annually.
Budget 40 to 70 percent above base salary including 11.5 percent superannuation, 17 to 22 percent for leave entitlements, 1 to 3 percent for workers compensation, 5 to 8 percent annually for amortized recruitment and onboarding, $8,000 to $18,000 for software and technology, $3,000 to $8,000 for professional development, and $7,000 to $20,000 for management time and overhead.
Finance manager recruitment through agencies takes 30 to 45 days on average from role definition to offer acceptance. Internal recruitment takes 60 to 90 days. Onboarding to full productivity requires 3 to 6 months. Total time from decision to hire until effective performance is 4 to 8 months, during which businesses bear costs without full value delivery.
Alternatives include fractional finance managers at $3,000 to $8,000 monthly for 1 to 2 days weekly, embedded finance services combining bookkeeping and finance management at $2,500 to $6,000 monthly, senior bookkeeper with external CFO support totalling $9,000 to $13,500 monthly, or part-time finance manager 2 to 3 days weekly at $5,000 to $8,000 monthly. These alternatives cost 30 to 60 percent less than full-time hires.
Consider hiring a finance manager when revenue consistently exceeds $8 million to $10 million and requires dedicated financial leadership beyond bookkeeper capability. Businesses below $8 million typically optimize costs using senior bookkeepers with fractional CFO support or embedded finance services. Businesses above $15 million usually justify full-time finance managers.
External recruitment fees are 15 to 25 percent of first year salary, or $15,000 to $35,000 for finance managers earning $100,000 to $140,000. Executive recruiters charge 25 to 30 percent. Internal recruitment costs $3,000 to $8,000 in job advertising, senior management time, and extended vacancy costs. Onboarding and training costs $10,000 to $30,000 over first 3 to 6 months.
Experienced finance managers at $125,000 to $145,000 deliver immediate value through proven skills, established processes, and minimal training requirements. Junior finance managers at $95,000 to $115,000 require 6 to 12 months training and make more errors but develop into the role. For most businesses, experienced hires deliver better ROI despite higher upfront costs.
Budget $600 to $1,800 annually for accounting software access, $1,200 to $6,000 for business intelligence and reporting tools, $2,400 to $9,600 for consolidation and planning software if managing multiple entities, $600 to $2,400 for budget management tools, and $2,500 to $4,000 for computer hardware depreciated over 3 to 4 years. Total software and technology costs average $8,000 to $18,000 annually.
Embedded finance services can replace finance managers for most businesses under $15 million revenue, providing equivalent scope including bookkeeping oversight, management reporting, budgeting, cash flow forecasting, and strategic advice at 30 to 60 percent of finance manager costs. Services integrate through daily Slack communication and shared systems, delivering faster implementation and broader expertise without recruitment risk.
Scale Suite provides embedded finance services for Australian businesses evaluating the cost of hiring finance managers. Our Sydney-based team delivers integrated bookkeeping, management accounting, and strategic CFO advisory replacing the need for full-time finance manager hires at significantly lower cost.
Our fixed monthly packages starting at $2,500 include complete bookkeeping and transaction processing, monthly management reporting and variance analysis, cash flow forecasting and budget preparation, strategic financial advisory and planning, BAS preparation and lodgement, and payroll processing and compliance. We integrate through daily Slack communication and shared Xero access, working like an internal finance team without employment costs, recruitment risk, or training overhead.
Businesses choose Scale Suite when evaluating finance manager hiring costs of $145,000 to $210,000 annually and seeking an alternative providing superior expertise at $30,000 to $72,000 annually. Our typical clients operate between $3 million and $30 million revenue across professional services, technology, retail, manufacturing, and property sectors.
For businesses comparing finance manager costs against integrated finance services, Scale Suite typically saves $100,000 to $150,000 annually while providing broader capability spanning bookkeeping, compliance, management accounting, and CFO strategy unavailable from a single mid-level hire.
Visit www.scalesuite.com.au/services/finance to explore whether embedded finance services suit your requirements.
Scale Suite delivers embedded finance and human resource services for ambitious Australian businesses.Our Sydney-based team integrates with your daily operations through a shared platform, working like part of your internal staff but with senior-level expertise. From complete bookkeeping to strategic CFO insights, we deliver better outcomes than a single hire - without the recruitment risk, training time, or full-time salary commitment.
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