Warrior Guide: Building a Scalable Finance Function
The Artemis Fund believes technology can create prosperity for all. With offices in New York, Texas, and Nevada, Artemis leads seed rounds for companies creating resilient families, individuals, and businesses across the US.
In 2008, Airbnb was on the verge of collapse. They had maxed out their credit cards, were running on fumes, and struggled to keep the business alive. But instead of raising more capital or completely panicking, they got scrappy — selling collectible cereal boxes to generate cash and extending their runway just long enough to refine their model. Eventually, they built the multibillion-dollar business we know today.
As a founder, you’re focused on building your team, refining your product, and scaling your business. Without strong financial and accounting practices, even the best ideas can struggle to survive. Every stage of growth brings new financial challenges, and understanding your numbers is key to making smart decisions.
This guide will help you build a finance function that grows with your startup — so you can stay in control, extend your runway, and build with confidence.
Here’s the TL;DR:
- Assess your needs: Needs depend on the complexity of the business as well as the stage of growth.
- Roles: Each accounting and finance role has a distinct use case, ranging from bookkeeper, accountant, controller, head of finance, or Chief Financial Officer (CFO).
- In-house vs. outsourced: Most of the time, we recommend that Pre-seed to Series A stage companies outsource; beyond Series A, we recommend bringing in-house.
- Costs: As you move up the needs and expertise ladder, the cost of services increases; for full-time hires, geography impacts salary bands.
- Tax and audit needs: Tax and audit services are generally outsourced to third-party service providers, even when accountants and finance are in-house. Financial audits are good financial housekeeping and are typically required by institutional investors.
The Two Sides of Startup Finance & Accounting
Startup finance and accounting break down into two distinct functions:
- Finance: Led by a Head of Finance or CFO, this function involves financial planning, modeling, analysis, fundraising, and strategic decision-making.
- Accounting: Handled by bookkeepers and controllers, this function focuses on financial controls and keeping your records precise and compliant.
The right hire — whether a bookkeeper, controller, Head of Finance, or CFO — depends on your startup’s stage, complexity, and budget. You’ll also need to decide whether to outsource part-time support or build an in-house team.
One note to keep in mind: all salary bands below are based on Carta Total Compensation Benchmarks.
Let’s break it down.
Pre-Seed to Seed
✅ Company needs: Day-to-day accrual accounting, base-level financial systems, monthly reports, proper chart of accounts, tax compliance, and payroll.
🧑💻 Recommended role: Bookkeeper or Accounting service
- A Bookkeeper knows how to book revenue and expenses under GAAP, and typically has some training in accrual accounting, but is not a CPA. A bookkeeper is the minimum hire you need to ensure proper financial reporting.
- An outsourced Accounting Service like Pilot is tech-forward, employing bookkeepers and experienced accountants to oversee and ensure reporting accuracy.
👍 Pros
- Cost-effective, since you are not covering overhead and you scale hours as needed.
- Allows you to focus on core business activities versus day-to-day accounting operations.
- Setting up accounts and processes correctly and in accordance with GAAP up front will save you from paying more in the future to fix later.
👎 Cons
- Lack of in-depth business understanding versus an in-house employee.
- Communication barriers from being outsourced or remote can lead to issues when the bookkeeper is not plugged into the business’s day-to-day operations.
- A bookkeeper will not be analyzing your financials or providing insights. It will be up to you or your team to oversee the work and glean insights from the financial reports.
🕗 Time: Part-time outsourced; 5–15 hours a month
💲Cost: Starting at $600-$1K per month
Seed to Series A
✅ Company needs: Financial controls, compliance, accurate and timely financial reporting, account reconciliation, base-level financial model, and base-level analytics.
🧑💻 Recommended role: Controller, Outsourced Accountant, or Fractional CFO
- A Controller is usually a CPA. Depending on complexity and budget, this hire may be in addition to, or a replacement for, a bookkeeper.
- An Outsourced Accountant can provide basic bookkeeping, CPA-level oversight, and tax preparation services. Service providers like Burkland Associates, Attivo Partners, and Launch Finance can scale from base-level bookkeeping, to controllers (CPAs), to fractional CFO services.
- A fractional CFO is a good way to get strategic expertise as needed. At this stage, a fractional CFO could implement scalable financial systems to support growth, support fundraising, or do other project-based work.
🕗 Time: Part-time (5–15 hours) or full-time, depending on business complexity. For example, if you are a fintech company with large volumes of transactions or in a regulated business, you may require more than a fractional accountant.
💲Cost:
Full-time Controller
- Median: $148K Target | Min $126K | Max $170K | 1–25 employees
- Median: $172K Target | Min $134K | Max $181K | 26–100 employees
Fractional Accountant/Controller
- Accountant: $125-$175 per hour
- Controller: $200-$250 per hour
Fractional CFO: see below, under Series A
Series A
✅ Company needs: Long-range planning, scenario modeling, revenue forecasting, cash flow projections, financial metrics, venture debt, sales compensation structures, cap table management, and fundraising.
🧑💻 Recommended role: Head of Finance or VP of Finance, Fractional CFO, or in-house CFO
- A Head of or VP of Finance has experience in financial planning and analysis and may come from a background in investment banking, consulting, or business operations. This hire might have experience with scaling and can also play an active role in fundraising. In addition to being your financial lead, this hire can also oversee the bookkeeping or accounting function, whether in-house or outsourced.
- A Fractional CFO is a good way to get the expertise you need without the expense of a full-time hire’s salary, benefits, and overhead. Typically, fractional CFOs dedicate a certain number of hours per week per client, allowing you to get the exact service you need. They will usually have experience working full-time at operating companies, preferably in your industry. Full-service firms will typically match you with a CFO who aligns with your needs, budget, and industry.
- A full-time CFO makes the most sense for growing companies scaling and gearing up for a Series B raise. This hire should have experience scaling a company, fundraising, and providing strategic financial leadership in finance and accounting.
🕗 Time: Full-time or Fractional
💲Cost:
Full-time Head of Finance
- Median: $168K Target | Min $126K | Max $210K | 1–25 employees
- Median: $177K Target | Min $133K | Max $221K | 26–100 employees
Fractional CFO
- Monthly retainer: $3,000 — $10,000
- Hourly: $350 — $400 per hour
Full-time CFO
- Median: $204K | Min $153K | Max $255K | 1–25 employees
- Median: $217K | Min $163K | Max $272K | 26–100 employees
Growth Stage: Series B, C, and D
✅ Company needs: If you are raising a Series B, you’re most likely generating at least $3M in ARR, and it’s time to bring a financial lead in-house.
🧑💻 Recommended role: Head of Finance or CFO
- A Head of or VP of Finance has experience in financial planning and analysis and may come from a background in investment banking, consulting, or business operations. This hire should have some experience with scaling and should also play an active role in fundraising. In addition to being your strategic finance lead, this hire oversees the accounting function, whether in-house or outsourced.
- A Full-Time CFO at this stage should have experience scaling a company, fundraising, and providing strategic financial leadership on all things finance and accounting.
🕗 Time: Full-time
💲Cost: Full-time CFO
- Median: $204K | Min $153K | Max $255K | 1–25 employees
- Median: $217K | Min $163K | Max $272K | 26–100 employees
Late Stage: IPO, M&A, or Exit
✅ Company needs: Late-stage companies gearing up for an exit, be it an IPO or M&A, require a CFO with experience in enterprise-level financial leadership.
🧑💻Recommended role: CFO
- A CFO at this stage knows how to get a company ready for an exit like an IPO. They probably have public company experience and know how to manage the various stakeholders and teams at this stage. At this stage, the CFO might also have experience managing an M&A transaction and dealing with third parties like investment bankers, auditors, lenders, and other stakeholders.
🕗 Time: Full-time
💲Cost: Full-time CFO
- Median: $263K | Min $197K | Max $329K | 100–500 employees
- Median: $312K | Min $234K | Max $390K | >500 employees
Tax Preparation & Financial Audits: Need to Know
Tax Preparation
Filing corporate taxes requires accountants with specialized tax expertise. Until your company is large enough to justify hiring an in-house tax accountant, this is typically an outsourced function. Many outsourced accounting services offer tax preparation as an add-on.
- Regardless of your startup stage, you’ll need someone to handle your annual tax filings.
- Tax preparation costs vary based on company complexity, but typically range from $2.5K–$5K for early-stage startups.
Financial Audits
Financial audits are conducted by independent third-party firms, and are often required at later growth stages, or as part of an Investor Rights Agreement. While early-stage companies typically don’t need audits, certain investors or lenders may request them.
- Early-stage startups can work with regional or smaller audit firms.
- Growth-stage companies (Series C and beyond) often transition to mid-tier or Big Four (Ernst & Young, KPMG, Deloitte, or PwC) audit firms.
- Choosing an audit firm with expertise in your industry and business model is crucial.
- Financial audits for Seed to Series C companies typically cost $20K-$50K.
Choosing the Right Partners
As your startup grows, the complexity of your financial needs will evolve. Whether managing day-to-day bookkeeping, preparing for a fundraise, or navigating an audit, having the right financial partners in place is critical. Depending on your stage, budget, and needs, you can work with full-service firms, software-driven solutions, or boutique consultants. Here are a few we recommend:
Full-service scalable:
Software-driven for base-level needs:
Boutique:
And finally, a few core principles to keep in mind to set yourself up for success:
- Start with accrual accounting and ensure your bookkeeper or accounting partner follows GAAP — it’s much easier and cheaper to get it right from the start than to fix mistakes later.
- Do your due diligence when selecting financial partners or hires — industry experience matters, and having someone who understands your business model will save time and headaches.
- Work with experts who understand venture-backed startups — they’ll anticipate your needs at every stage and help you navigate fundraising, audits, and long-term financial planning.
Ultimately, strong financial fundamentals don’t just help you scale — they help you survive. In 2020, Airbnb faced a massive crisis when the pandemic brought travel to a halt. With revenues plummeting, they had to make tough financial decisions quickly. Their ability to analyze their numbers, adjust spending, and streamline operations helped them weather the storm and come back stronger, ultimately leading to a successful IPO.
Having a firm grip on your financials — whether through in-house hires or trusted outsourced partners — means you can navigate not just growth, but unexpected challenges. Build that foundation early, and you’ll be ready for whatever comes next.
For more on this topic, we highly recommend How to hire a CFO and build a finance team by BVP Atlas, and Finance 101 for Early Stage Startup Founders, by Mucker Capital.
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