Do You Actually Need a CFO? Instead, Hire for the Problem with Tom Hunter
Tom Hunter, a finance recruitment specialist, discusses how to hire the right first finance person for startups by focusing on solving specific business problems rather than hiring based on generic job titles or requirements. He emphasizes that most founders lack finance backgrounds, need controllers before CFOs, and that successful hiring hinges on clearly identifying what problems the role should solve within 90-180 days.
Summary
Tom Hunter from Story Recruitment discusses the critical challenge of hiring the first finance person at startups. The conversation reveals that approximately 95-99% of founders do not come from accounting and finance backgrounds, causing finance to become "someone's fifth job" until it no longer works. Hunter emphasizes that the hiring decision should be driven by identifying specific business problems rather than generic job titles or seniority levels.
The transcript explores the hierarchy of finance hiring, with Hunter arguing that most early-stage companies need a financial controller or VP of finance before a CFO. A CFO-level role may be better approached fractionally at first. The decision depends on where the business is in its lifecycle and what specific problems exist—whether that's late financial reporting, cash flow issues, or lack of financial controls.
A critical example illustrates the cost of getting this wrong: a founder conflated GST (goods and service tax) into their ARR figures, making their actual revenue appear inflated. This error triggered a chain reaction that caused their lead investor to pull out of a funding round. Hunter notes that sales and use tax issues are nearly universal in his first 90 days with new clients, sometimes representing hundreds of thousands of dollars in exposure.
The conversation addresses how to identify when a company is truly ready to hire and how to position the role correctly. Hunter advocates for a problem-first approach: identify the company's biggest financial challenges, rank them by priority and urgency, then build the job description around solving those specific problems. This contrasts with traditional hiring that relies on generic requirements like "strong communication skills" or "strategic thinker."
Both speakers discuss the role evolution in finance, particularly the shift from traditional accounting-focused controllers to "commercial enablers"—finance professionals who partner with sales, go-to-market teams, and product to drive business decisions. The transcript also explores how AI is changing finance hiring and skill requirements, with AI now expected as table stakes in tech environments but becoming a salary premium if someone is truly leveraging it to reduce headcount needs.
The hiring timeline typically ranges from 4-6 weeks for internal recruitment to 20-25 days for an experienced external recruiter using a targeted approach. Hunter's methodology includes LinkedIn-based market mapping and "story posts" that sell the company's vision and purpose rather than just listing requirements.
Finally, the speakers discuss a specific risk: hiring someone below market rate due to unclear requirements. This often results in either hiring someone overqualified who becomes disgruntled, or underqualified candidates taking the role temporarily. Structuring roles with milestone-based compensation increases rather than standard annual increases can mitigate this risk.
About this episode
The most expensive finance hire can be the one that looks senior enough to feel safe but solves the wrong problem. Tom Hunter of Story Recruitment joins FP&A Today to explain why the first finance hire at a startup is often not a CFO. Story Recruitment focuses on first-CFO and first-finance-hire searches for Australian tech, fintech and deeptech startups, and Tom also hosts The CFO Track Podcast. His starting point is simple: before choosing a title, define the financial problem the business actually needs someone to solve. That often means building the basics first. Tom describes financial controls, governance and reliable reporting as the foundation that FP&A and strategy have to sit on. He also shares an example of a founder who included GST in ARR, overstating revenue and contributing to a chain of due-diligence concerns that ultimately cost the company its lead investor. For growing businesses, the finance function itself becomes a signal of how organized and decision-ready the company really is. The back half of the conversation looks at how the finance skill set is changing. As AI and better tooling reduce the moat around some technical work, communication, commercial judgment, project management and the ability to influence better decisions become more valuable. Tom argues that finance professionals should not see themselves as ticket takers or back-office support. The strongest finance people operate as commercial enablers who understand the problem, explain the numbers and help move the business forward. Key Moments Build the foundation before the forecast. Controls, governance and reliable reporting need to be in place before FP&A can confidently layer forecasting and strategy on top. The first finance hire is usually not a CFO. A Controller, Head of Finance, VP Finance or fractional leader may be a better fit depending on the company’s stage, scale and complexity. Investors judge the finance function as a signal. Clean models, trustworthy reporting and an organized data room can influence how investors perceive the broader business. Write the job around the problem. Rank the financial challenges the business needs solved, then build the role and job description around those priorities rather than around a prestige title. Candidates need to prove outcomes. The strongest finance candidates can explain what problem they faced, how they approached it and what changed as a result. Communication is becoming more valuable. As AI and tooling take on more technical work, finance professionals who can communicate clearly, influence stakeholders and lead decisions become more differentiated. Stay proactive in your career. Continuous learning and volunteering for opportunities gives finance professionals more control than waiting for promotions, vacancies or recruiters. Finance should be the commercial enabler. The best CFOs and FP&A leaders help the business make better decisions instead of operating only as a reporting or support function. Timestamps 03:45 - Why controls and reporting come before FP&A and strategy09:01 - Why investors see the finance function as a signal of how organized the business is10:23 - The ARR reporting mistake that helped cost a founder the lead investor16:04 - Do you actually need a CFO - or even a full-time finance hire?20:02 - Build the finance role around the business problem it needs to solve26:26 - Why communication is becoming one of the most important finance skills37:17 - Staying relevant by learning, leveling up and being proactive52:12 - Why the best CFOs are commercial enablers, not ticket takers Earn CPE Credit If you would like to earn CPE credit for listening to the show, visit: https://earmarkcpe.com/fpa Download the app, take a short quiz, and get your CPE certificate. Further Reading/Listening About Tom Hunter Tom Hunter, Story Recruitment - first-CFO and first-finance-hire search for Australian tech, fintech and deeptech startups. Host of The CFO
Key Insights
- Tom Hunter reports that out of the last couple hundred founders he's spoken to, only about 4-5 came from an accounting background, as most founders come from product, tech, go-to-market, or sales roles.
- Hunter argues that financial controls and governance must be in place before strategic FP&A work can be effectively applied, following a hierarchy of needs model.
- A founder's conflation of GST into ARR figures caused their actual revenue figures to be dramatically wrong, triggering a chain reaction that led their lead investor to withdraw from a funding round entirely.
- Hunter claims that sales and use tax is nearly universally miscalculated in early-stage companies, often representing hundreds of thousands of dollars in liability that gets discovered in the first 90 days.
- Hunter argues that the best CFOs function as commercial enablers of the company rather than financial stewards, partnering with sales, go-to-market, and even marketing teams.
- Tom Hunter does not use contingent fee models (pay-on-placement); instead, he uses retained search, which he argues allows for more consultative, thorough approaches rather than rushing to fill positions.
- Hunter contends that job descriptions have become filled with meaningless buzzwords like 'dynamic environment' and 'strategic thinker,' and should instead specify what problems must be solved within 90-180 days.
- The transcript reveals that AI proficiency is now becoming table stakes (expected standard) in tech finance roles, but candidates with genuine AI implementation expertise command a salary premium.
- Hunter notes a significant gender disparity in how ambition and career proactivity are received in finance, with the same behaviors sometimes glorified and sometimes seen as disrespectful depending on the organization and leadership philosophy.
- Tom Hunter reports that his recruitment process typically takes 20-25 days from shortlist presentation to start date when using his methodology, compared to 4-6 weeks for internal recruitment or 2-3 months for traditional executive search.
- Hunter argues that when hiring below market rate due to unclear role requirements, companies risk either disgruntled overqualified candidates who leave once they recognize their true market value, or underqualified candidates taking temporary positions.
- Both speakers agree that finance professionals who position themselves as problem-solvers and commercial enablers rather than back-office ticket-takers are the ones who get promoted, make business impact, and receive recognition.
Topics
Transcript
There's what level do you actually need and do you actually need someone full time? And so they conflated that into their ARR figures. And so obviously their actual revenue was way off. It all comes back to problems, right? Because ultimately that's what a business is doing when they're trying to hire someone. They're trying to solve a business problem. The best CFOs are the commercial enabler of the company. If you would like to earn CPE credit for listening to the show, visit earmarkcpe.com slash FP&A. Download the app, take a short quiz, and get your CPE certificate. And if you enjoy listening to FP&A Today, please leave a rating and review. And now, on to the show.…
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