The short answer
A head of finance keeps the finance department running: bookkeeping, month-end close, controlling and reporting. A CFO works one level up: representing the company to investors, banks and buyers, and steering financing, planning and major decisions. If what you need most is reliable numbers, a head of finance is enough. If you need someone to raise money or prepare a sale with those numbers, you need a CFO.
Many companies decide by the title that sounds best on a job board. The better question is where things are stuck right now: inside the department, or at the interface with the outside world.
The two roles compared
| Head of finance | CFO | |
|---|---|---|
| Core task | Deliver correct numbers on time | Use the numbers to steer and finance the company |
| Focus | internal: processes, team, close | external: investors, banks, buyers |
| Main counterpart | management, tax advisor, team | shareholders, board, lenders |
| Typical outputs | month-end close, cost centres, management reporting | funding round, bank facility, exit, business plan |
| Day rate at nugrow | from EUR 1,300 net | from EUR 1,800 net |
When a head of finance is enough
- The month-end close takes too long or cannot be relied on.
- Bookkeeping works, but nobody analyses the numbers for management.
- The finance team is growing and needs a hands-on lead.
- A system change, such as a new ERP, has to be carried through cleanly.
- Management handles financing and investor contact well itself.
In these cases a CFO costs more than necessary and is often under-used. If the lead is only missing for a transition period, an interim head of finance runs the department until the role is filled permanently. If all you need is extra capacity in the team, interim accounting and FP&A is leaner still.
When you need a CFO
- A funding round or a larger bank facility is due in the next six to twelve months.
- A financial investor has come in and expects board-level reporting.
- A sale or an acquisition is being prepared.
- The company is in difficulty and banks want to see a plan that holds up.
- Several companies have to be steered together.
Here the external role decides money: valuation, interest, purchase price. What a financial investor expects after closing is covered in the first 100 days in a portfolio company.
The most common mistake
The costliest mistake is not the wrong role but the right role at the wrong time. Hire a CFO before the department produces reliable numbers and you pay CFO rates for closing work. Look for a CFO only once the funding round is under way and you negotiate with numbers nobody can clean up in time.
So the order is almost always the same: get the numbers in order first, then go outside.
Combining both roles
In many scale-ups and mid-sized companies the best answer is not either-or. Two set-ups are common:
- Permanent head of finance, interim CFO. The department is led internally; a CFO joins for a funding round or a sale and leaves afterwards.
- Interim CFO as a bridge. An interim CFO leads the department for a few months, builds it up and hands over to a head of finance who can grow into the role.
How interim, part-time CFO and permanent hire differ is set out in the decision guide to the three models.
What it costs
With nugrow's entry rates and three days a week, the picture looks roughly like this:
| Role | Day rate | per month | over 6 months |
|---|---|---|---|
| Head of finance | EUR 1,300 | about EUR 16,900 | about EUR 101,300 |
| Interim CFO | EUR 1,800 | about EUR 23,400 | about EUR 140,300 |
Based on 4.33 weeks a month, net of VAT, excluding travel and expenses. The difference of about EUR 6,500 a month is well spent when the CFO tasks actually arise. All roles and a calculator are on the pricing page.
A quick self-check
- Is the month-end close ready by the tenth working day at the latest?
- Is there a twelve-month plan that management trusts?
- Is a funding round, a loan or a sale due in the next twelve months?
- Does an investor or a board expect regular reports?
- Does financing take more than one day a week of management time today?
Two noes on the first two questions: start with a head of finance. One yes on questions three to five: you need a CFO, at least for a while.
How nugrow helps
nugrow fills both roles on a fixed-term basis, from a network of around 500 finance freelancers across the German-speaking region. Many mandates start with a conversation about which of the two roles is actually missing. More on the interim head of finance, the interim CFO and interim management in the finance department.
Talk to Sebastian Janus about which role your company needs
Frequently asked questions
What is the difference between a head of finance and a CFO?
A head of finance makes sure the numbers are right and on time: bookkeeping, month-end close, controlling, reporting. A CFO uses those numbers to steer the company and represent it externally: to investors, banks and buyers, on financing, planning and major decisions.
When does a company need a CFO?
Not at a particular size, but once financing, investors or a transaction regularly take up management time: before a funding round, in bank negotiations, during exit preparation, in a restructuring, or when a financial investor expects board-level reporting.
Can a head of finance grow into the CFO role?
Yes, it is a common path. It works when the person is involved early in investor meetings, planning and bank appointments. An interim CFO can support that transition and hand over the external work step by step.
What does an interim head of finance cost compared with an interim CFO?
At nugrow a head of finance starts at EUR 1,300 and an interim CFO at EUR 1,800 net per day. At three days a week that is roughly EUR 16,900 and EUR 23,400 a month. Travel and expenses are billed separately.
Read on
- Interim head of finance: tasks, process and cost
- Interim CFO, CFO as a Service or a permanent hire?
- What does an interim CFO cost?
- CFO handover and vacancy
- Closing backlog and fast close
- Pricing: day rates and worked example
Sources and status
Based on nugrow's published entry day rates and its own mandate experience with scale-ups and portfolio companies. The worked example is illustrative. Status: October 2026.
