Get that CFO Out of the Weeds.

Advice for Founder-Led Companies

After more than two decades as a privately held, often founder-led company, I've seen a pattern: In smaller organizations, it's tempting for CFOs—or whoever holds the finance title—to jump into the weeds and "just do it themselves, " especially when resources are thin. I get it. But even in smaller companies, CFOs closing the books is a mistake. Here's why.

Can someone please rescue this CFO?

It's a Misallocation of Strategic Time

In founder-led companies, the CFO’s role is even more critical: guiding cash management, building financial forecasts, supporting strategic decisions, and preparing for future growth or transactions. When Ispend time closing the books, making actual journal entries on a monthly basis, I'm not focusing on activities that move the business forward. I am not working on my highest and best use. Your CFO should be working on funding plans, building reporting dashboards, understanding the economics of the business, deeply, and managing risk—not chasing debits and credits.

It Limits the Development of a Scalable Finance Function

Small companies often struggle to build scalable infrastructure. If the CFO is "doing" instead of "building," the company never grows past its current bottlenecks. Even with limited resources, companies should invest in bookkeepers, controllers, or outsourced accounting services to handle transactional tasks. The CFO’s job is to design the system, not be the system.

I've worked with founder-led businesses where the CFO was buried in month-end entries—which delayed board reporting, slowed decision-making, and led to constant burnout. Once we separated operational accounting from All The Other Things finance, the company was able to scale the back office and the CFO was happier.

It Increases Risk of Error and Control Weakness

In smaller organizations without layers of control, the risk of mistakes and overlooked issues is already higher. If the CFO posts journal entries and also oversees financial reporting, critical segregation of duties is lost. All companies benefit from having basic checks and balances—and the CFO needs to stay independent from the transactional work to maintain integrity in the numbers.

It Sends the Wrong Message to the Team and the Market

Founders often rely heavily on their CFO as a trusted advisor. When the CFO is bogged down in clerical tasks, it sends a message—internally and externally—that the company isn't yet ready for prime time. Investors, bankers, and strategic partners notice when financial leadership is tactical instead of strategic. If your company aims to grow, your CFO needs to operate like a CFO, even if the team underneath them is lean.

Lean Finance Machine

In founder-led companies, resources are often tight. But the CFO's highest and best use is never making journal entries—it's building the financial foundation for scalable growth. Invest in even modest accounting support. Free your CFO to focus on strategy, capital, and building enterprise value. Your future self will thank you.