How to Hire a VP of Finance

VP Finance vs CFO: When to Hire Which

The VP of Finance is typically the right hire when the company needs strong financial operations leadership — FP&A, financial reporting, cash management, and the operational finance infrastructure that keeps the business running — but does not yet need the strategic finance leadership and investor-facing capabilities that a CFO provides. This is usually appropriate at 50–150 employees with $5M–$20M ARR, before the fundraising complexity and board reporting requirements that make a CFO essential.

Companies that hire a CFO too early — before they need the investor-facing and strategic capabilities — often find themselves with an overqualified and underutilised finance leader who leaves within 18 months. The VP of Finance hire allows the company to build the financial operations foundation while preserving the CFO hire for when the strategic and investor-facing dimension is genuinely needed.

What a VP Finance Needs to Own

Financial planning and analysis is the core of the VP Finance role at a growth-stage company — building the annual operating plan, managing the monthly financial close, producing the board reporting package, and maintaining the financial model that the CEO and board use to make capital allocation decisions. The VP Finance who does this well gives the CEO financial clarity without requiring a full CFO investment.

Cash management and runway visibility is increasingly important in the current funding environment. A VP Finance who can maintain an accurate rolling 12-month cash runway projection, model the impact of hiring decisions on burn rate, and flag covenant or runway risks before they become crises is providing direct business value. This capability requires both technical finance skill and the operational discipline to maintain the model as the business changes.

Evaluating VP Finance Candidates

Ask VP Finance candidates to describe the most complex financial model they have built and walk you through how they structured it. The depth of their answer reveals both technical capability and how they think about financial architecture. Candidates who describe models in terms of inputs, drivers, and scenarios are demonstrating FP&A maturity. Candidates who describe models in terms of Excel formulas and tab structure are demonstrating technical skill without strategic framing.