Congrats! You raised your Series B :) You scraped to find Product/Market fit in your Seed Stage, then came market penetration in your Series A.
Now you’re thinking about scaling up and hiring a ton of people. Great! Just make sure that you hire the right people: those that are core to your product. 90% of the time you really don’t need to hire in-house accountants, but I have seen exceptions. The most common pitfall that we see is hiring a “VP of Finance”, “Controller” or “CFO” way too early.
The ideal accounting/finance team should have 3 levels:
Staff Accountant ($60K pp salary)
Controller ($120-150K pp salary)
CFO/CPA ($200K pp salary)
Advisory & Expertise
You have two options:
1. HIRE AN ENTIRE ACCOUNTING/FINANCE TEAM
Achieves Breadth & Depth of service
Accountability: Multiple levels of review
It’s expensive!!!: $400K per year
Poor utilization: people will be sitting idle.
2. HIRE JUST A CONTROLLER OR STAFF ACCOUNTANT… maybe a CFO later?
You’re next thought might be to hire just one of those levels :)
You wont get the breadth and depth of service that you need.
Poor quality work / that person will be overworked.
Its deceptively cheap: you’ll still need to outsource for tax or CFO advisory.
In sum, don’t bring accounting/finance in-house until your Outsourced Accounting/Finance team bills you more that $33K per month ($400K/12 months)