CFO Services
What Does a CFO Do? (The eCommerce CEO's Guide)
The CFO role spans seven distinct functions, from cash and treasury to FP&A, capital, and strategy, and which ones matter most depends on where the brand sits in its lifecycle. Most CEOs hire a CFO and find the role does not do what they expected, confusing it with a controller who handles accounting and reporting. At sub $30M brands, the cash function gets the daily attention.
Most CEOs hire a "CFO" and discover the role doesn't do what they expected. Some confuse it with a controller (accounting + reporting). Some expect it to be a strategy function (board materials + fundraising). The real CFO role spans seven distinct functions, and which ones matter most depends on where the business is in its lifecycle.
The 7 functions of an ecommerce CFO
1. Cash management
13-week cash flow forecast, treasury management, runway projection, working capital optimization. The "don't run out of cash" function. The most time-sensitive part of the role — usually the daily attention at sub-$30M brands.
2. Strategic finance
Driver-based forecast, scenario planning, variance analysis, board materials. Translating business strategy into financial mechanics. Where the CFO partners with the CEO on the operating plan.
3. Capital strategy
Debt vs equity vs working-capital financing decisions. When to raise. When to take on a line of credit. When MCA or RBF makes sense (rare). When SAFEs are appropriate vs priced rounds. The function that determines how much of the company the founder gives away.
4. M&A and exit prep
Readiness for sale 12-24 months out. Seller-side QofE, accounting cleanup, working capital target negotiation, EBITDA bridge defense. Brands without CFO-grade exit prep typically lose 10-25% of headline value during diligence.
5. Unit economics + pricing
SKU-level contribution margin, channel-level economics, max CAC ceiling, pricing tests. The function that determines whether the business model actually works at scale.
6. Vendor / banking relationships
Bank relationship, audit firm, tax preparation, key vendor contracts. The "boring" function that compounds — strong banking relationship at year 1 becomes available capital at year 4.
7. Compliance and governance
GAAP compliance, sales tax filings, audit prep, board governance, equity administration. Less glamorous but every brand needs it.
What a CFO doesn't do
- Bookkeeping (that's the bookkeeper)
- Tax filing (that's the CPA)
- Day-to-day accounting (that's the controller)
- Operational ops (that's the COO)
- Marketing ROI (CFO advises, CMO owns)
When does an ecommerce brand need a CFO?
| Stage | Right structure |
|---|---|
| $0-2M ARR | Founder + bookkeeper + CPA |
| $2-5M ARR | Founder + bookkeeper + CPA + fractional CFO advisory (quarterly) |
| $5-15M ARR | Fractional CFO (monthly) + bookkeeper + CPA |
| $15-50M ARR | Fractional CFO (weekly) or part-time CFO + controller + bookkeeping team |
| $50-80M ARR | Decision point — full-time CFO usually justified |
| $80M+ ARR | Full-time CFO + finance team (controller, FP&A, accounting) |
What it costs
- Fractional CFO (quarterly): $5-15K/quarter
- Fractional CFO (monthly): $3-15K/month
- Part-time CFO: $10-25K/month
- Full-time CFO (US, $50M+ ARR): $250-500K total comp + equity
There is also a fourth scenario the table above doesn't cover: when a full-time CFO leaves mid-flight and you need senior coverage for a few months while you backfill. That is what an interim CFO engagement is for, the same depth on a fixed-term basis.
How an ecommerce CFO differs from other industries
The functions are the same; the daily priorities differ. Ecommerce CFOs spend disproportionate time on: working capital + inventory turn, CAC payback, contribution margin by SKU/channel, peak-season cash plan, FBA fee economics.
SaaS CFOs spend time on: ARR growth, retention, sales efficiency, burn multiple, gross margin durability.
Services CFOs spend time on: utilization, project margin, AR collection, partner economics.
The principles transfer; the daily decisions don't. Hire someone with operational experience in your specific model.
Common hiring mistakes
- Hiring too late. Waiting until $30M ARR means foregoing 3-5 years of better capital, cleaner unit economics, better M&A positioning. Most brands should engage fractional CFO by $5M.
- Hiring too senior too early. A $300K full-time CFO at $10M ARR consumes 3% of revenue — the value isn't there yet. Fractional bridges this.
- Hiring without the ecom muscle. Former enterprise CFOs often struggle with the inventory + working capital intensity of DTC.
- Conflating CFO with controller. Hiring a controller-level person at CFO title produces clean books but not strategic value.
Frequently Asked Questions
What does a CFO actually do day to day?
Seven functions: cash management, strategic finance, capital strategy, M&A prep, unit economics, vendor relationships, compliance.
When does an ecommerce brand need a CFO?
Fractional from $5M ARR. Full-time usually justified by $50-80M.
CFO vs controller?
Controller manages backward-looking accounting accuracy. CFO sets forward-looking strategy.
What does a fractional CFO cost?
$3-15K/month depending on scope and brand size.
How is an ecom CFO different from SaaS or services?
Same functions, different daily priorities. Ecom: working capital + inventory. SaaS: ARR + retention. Services: utilization + project margin.
Related
- Outsourced CFO services guide
- Fractional CFO for Amazon FBA
- Best fractional CFO services 2026
- 7-Layer eCommerce Profitability Audit
- PROFIT Score framework
Considering a CFO hire? Talk to a CFO — 30 minutes to scope what you actually need.