Quick summary
At some point, a bookkeeper isn't enough and a full-time CFO is too expensive. Bangalore founders navigating this transition have real options. Here's how to think through them.
The spectrum of finance function options
Finance function for a growing startup is not binary. There is a spectrum from 'shared bookkeeper' to 'full-time CFO', and the right point on that spectrum changes as you scale:
- ₹0–₹2 crore ARR: outsourced bookkeeper + annual CA for compliance
- ₹2–₹10 crore ARR: outsourced accounting firm with monthly MIS + fractional CFO (10–15 hours/month)
- ₹10–₹30 crore ARR: outsourced firm + part-time or full-time finance manager + fractional CFO
- ₹30 crore+ ARR or pre-IPO: full-time CFO, internal finance team, outsource only specific compliance tasks
The fractional CFO option
Bangalore's startup ecosystem has a mature market for fractional CFOs. Experienced finance professionals who work with 3–5 companies simultaneously at a fraction of the cost of a full-time hire.
A fractional CFO typically handles: fundraise support (cap table modelling, investor reporting), financial model maintenance, MIS design and board reporting, cash flow management, and strategic finance decisions. They do not replace the day-to-day bookkeeper. They work with one.
Cost in Bangalore: ₹40,000–₹1,20,000/month for 10–20 hours depending on scope and seniority.
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Find a verified accountant in BengaluruWhen to hire a full-time CFO
A full-time CFO is justified when your finance function is complex enough that a single person's full attention is worth the ₹25–60 lakh annual package. The triggers:
- Series B+ funding with investor-level financial reporting requirements
- International revenue or multi-entity structure requiring consolidated accounts
- Acquisition target due diligence or being acquired
- Preparing for a public listing
- Finance decisions are routinely delaying operations because no one owns them full-time
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