Published: October 202
Many Australian founders excel at building products, acquiring customers, and scaling operations. However, when it comes to financial management, even the most capable entrepreneurs can find themselves out of their depth. If you're wondering whether it's time to bring financial expertise in-house, you're probably already overdue.
The challenge isn't just recognising the need. It's understanding which financial role your business requires right now, and when to make that investment. This guide breaks down the critical stages where financial guidance becomes essential, and helps you identify the right hire for your growth phase.
Australian startups typically encounter three pivotal moments where professional financial guidance shifts from helpful to essential:
When you've moved beyond survival mode and established consistent revenue, proper financial management can determine whether you continue scaling or hit a growth ceiling.
Once your business generates consistent six-figure annual revenue, the complexity of financial operations increases substantially. Cash flow management, tax obligations, and financial forecasting require dedicated attention.
Whether you're opening new locations, launching new product lines, or scaling your team significantly, having robust financial systems and expertise becomes non-negotiable.
Missing the right timing at these stages can create problems that are expensive to fix later. Poor financial management early on doesn't just cost money. It can damage relationships with suppliers, create compliance issues with the ATO, and limit your strategic options when opportunities arise.
Not all financial professionals serve the same purpose. Understanding which role fits your current needs prevents the common mistake of hiring too senior (and expensive) or too junior (and ineffective) for your situation.
For Australian startups in their first 12 to 24 months of consistent revenue, you need someone who can wear multiple hats effectively. This person should be comfortable with both strategic planning and tactical execution.
Look for someone with strong skills in:
At this stage, titles like Finance Manager or Head of Finance often work well. This person doesn't need to be a qualified accountant, but they should understand accounting principles and work effectively with your external accountant or bookkeeper.
The key is finding someone who can build financial models that guide decision-making while also ensuring bills get paid on time and payroll runs smoothly. For many Australian startups, this might be someone with three to seven years of experience in corporate finance or a similar high-growth environment.
Once you've established consistent revenue and are scaling your operations, your financial needs typically split into two distinct areas: accounting operations and strategic finance.
At this point, you may need to decide whether to:
A Financial Controller brings rigour to your accounting processes. They ensure your books are maintained correctly, financial reporting is accurate and timely, and you're meeting all compliance obligations. For Australian businesses, this includes managing BAS requirements, superannuation obligations, and maintaining audit-ready records.
Your strategic finance person focuses on forecasting, scenario planning, and providing insights that drive business decisions. They should be analysing unit economics, customer acquisition costs, and building models that help you understand the financial impact of strategic choices.
If you're managing a business above $20 million in revenue, operating across multiple locations, or dealing with complex financial structures, you need a Chief Financial Officer with relevant experience.
At this level, technical accounting knowledge is table stakes. What matters more is:
For Australian businesses considering significant expansion, major equipment or property investments, or complex operational changes, a CFO who's navigated these situations before becomes invaluable. Their experience and ability to anticipate challenges can prevent costly mistakes.
Beyond identifying which role you need, several practical considerations will determine whether your finance hire succeeds.
Founders naturally think about the future. You're building something that will grow substantially, and it's tempting to hire for where you'll be in two years rather than where you are today.
Resist this temptation with finance hires.
Hiring a CFO when you need a Finance Manager means paying $250,000+ for someone who will be frustrated doing work below their capability level. Hiring a junior accountant when you need strategic financial guidance means making decisions without proper financial insight.
Hire the person who can solve your problems today. You can always adjust your structure as you grow.
Recognising that your needs will evolve helps you structure roles and employment arrangements appropriately.
The Finance Manager you hire today may not be the right person to become your CFO in three years. That's perfectly acceptable, and you should structure your employment offers and organisational design accordingly.
Many Australian startups use a combination of:
This flexibility allows you to scale your finance function up or down as your business evolves, without being locked into arrangements that no longer serve your needs.
Modern financial software has transformed what a small finance team can accomplish. Cloud-based accounting systems, automated accounts payable platforms, and sophisticated reporting tools mean two people can do what previously required five.
For Australian businesses, platforms like Xero provide robust accounting functionality, while specialised tools handle everything from expense management to financial consolidation. Investing in the right technology stack early means your finance team can focus on analysis and strategy rather than data entry and manual reconciliation.
This technology leverage is particularly valuable for startups. Instead of hiring a large team to manage transactional finance, you can keep your team lean while still maintaining tight financial controls and generating meaningful insights.
Not every finance function needs to be handled internally, particularly in the early stages. Many successful Australian startups use external CFO services, outsourced accounting teams, or specialist consultants to fill gaps in their capabilities.
This approach works particularly well for:
The key is being strategic about what you bring in-house versus what you access externally. Generally, anything that requires deep knowledge of your specific business or needs to happen frequently should be internal. Specialised expertise needed periodically can often be accessed more cost-effectively through external providers.
Sometimes the question isn't whether to hire, but whether you've already waited too long. Several warning signs indicate you need financial expertise urgently:
If you're regularly surprised by cash shortfalls, struggling to meet payroll, or unclear about your runway, you need help immediately. These issues don't resolve themselves, and the stress they create affects every aspect of your business.
When you're turning down opportunities or delaying expansion because you don't have clear visibility on whether you can afford it, you're leaving money on the table.
Missing BAS deadlines, getting behind on superannuation payments, or receiving notices from the ATO are red flags that can't be ignored. Compliance problems create legal and financial risks that threaten your business.
If you're avoiding important strategic decisions because you don't have clear financial data to guide you, you're operating blind. Good financial insight doesn't guarantee correct decisions, but making decisions without financial clarity usually leads to poor outcomes.
When you find yourself spending nights and weekends trying to manage finances instead of building your business, you've passed the point where DIY makes sense. Your time has value, and it's almost certainly better spent on activities that drive revenue and growth.
Many Australian startups find themselves in an awkward position. They clearly need professional financial expertise, but they're not quite ready to commit to a $120,000+ salary plus on-costs for a full-time Finance Manager or Controller.
This is where outsourced finance teams provide a practical bridge solution.
Services like Scale Suite allow you to access senior financial expertise without the full-time commitment. This approach lets you:
You get strategic CFO support, management reporting, budgeting and forecasting, and financial analysis at a fraction of the cost of a permanent hire. For many businesses between $1 million and $10 million in revenue, this provides the optimal balance of expertise and cost-effectiveness.
Many businesses use outsourced finance support for 12 to 24 months before transitioning to an internal hire. By that point, they understand exactly what they need, have robust systems in place, and can justify the investment in a permanent team member.
Scale Suite provides outsourced CFO and finance team services for Australian businesses from $1 million to $20 million in revenue. We help businesses build robust financial foundations, implement effective systems, and make data-driven decisions that accelerate growth.
Our team brings experience from leading Australian businesses across diverse industries. We understand the unique challenges of the Australian market and provide practical, actionable financial guidance tailored to your growth stage.
Whether you need strategic CFO support, help building financial models, management reporting, or someone to oversee your finance function as you scale, ScaleSuite offers flexible solutions that grow with your business.
Visit scalesuite.com.au to learn how we can support your financial operations.
For early-stage startups, a Finance Manager typically commands $110,000 to $150,000 plus superannuation. A Financial Controller ranges from $130,000 to $180,000. When you factor in recruitment costs, onboarding time, and potential bonus structures, the total first-year cost often exceeds $160,000 for a Finance Manager role. This is why many businesses between $1 million and $5 million in revenue opt for outsourced finance support initially, which typically costs $3,000 to $8,000 per month depending on the level of involvement required.
Not necessarily. For early-stage strategic finance roles, business acumen and financial modelling skills often matter more than accounting qualifications. However, if your primary need is ensuring compliance and maintaining accurate books, a qualified accountant (CA or CPA) brings valuable expertise. Many startups pair a strategic finance person with an external accounting firm to cover both bases, or use an outsourced finance team that provides both skill sets.
If your main challenges are forecasting, budgeting, and understanding your unit economics, you need a Finance Manager focused on financial planning and analysis. If you're struggling with accurate bookkeeping, timely financial reporting, or compliance issues, a Financial Controller is the better choice. Many early-stage businesses actually need both skill sets, which is where an outsourced finance team can be particularly valuable as they provide comprehensive coverage across both areas.
Absolutely, and for many Australian startups this is the optimal approach. Outsourced CFO services provide senior strategic guidance at a fraction of the cost of a full-time executive. This works particularly well before you hit $10 million to $20 million in revenue, or if you need specific expertise for a limited time. The key is ensuring your outsourced CFO has sufficient time allocated to understand your business properly. Many businesses use this as a bridge solution before transitioning to an internal hire once they reach sufficient scale.
At minimum, you should have cloud-based accounting software (Xero is standard for Australian startups), a separate business bank account, and basic processes for tracking invoices and expenses. However, don't wait for perfect systems before hiring. A good finance hire will assess your current setup and implement improvements as needed. Starting with basic systems is fine as long as you're ready to invest in proper tools as you grow.
As a general rule, finance and accounting costs (including salaries, software, and external services) typically represent 2% to 5% of revenue for early-stage companies. As you scale and operations become more complex, this might increase to 5% to 7%. However, these are guidelines, not hard rules. The right investment in finance capability often pays for itself many times over through better decision-making, improved cash management, and avoiding costly compliance mistakes.
Waiting too long. Many founders try to handle everything themselves well past the point where it makes sense. The second most common mistake is hiring someone too senior too early, or too junior too late. Understanding which capabilities you actually need right now, and being willing to evolve your structure as you grow, prevents both problems. Using outsourced finance support as a bridge can help you avoid both mistakes while building the capability you need.
Focus on their ability to explain complex financial concepts in plain language, their experience with businesses at your stage, and their practical problem-solving approach. Ask them to walk through how they'd approach specific challenges you're facing. Consider involving a trusted adviser, board member, or external finance professional in the interview process to provide technical assessment. Cultural fit and communication skills matter enormously for your first finance hire, as they'll need to work closely with you and educate the broader team. If you're working with an outsourced provider initially, this gives you time to understand what good finance support looks like before hiring internally.
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.
Considering hiring finance staff? Let's compare what you'd get with an internal hire versus our embedded team approach.
Our experts will show you the complete picture - costs, capabilities, and flexibility - so you can make the right decision for your business.
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