It’s all about the people.
|
|
CFO |
Finance Director |
Head of Finance |
|---|---|---|---|
|
Focus |
Strategy, capital, investor and board relationships |
Governance, compliance, financial control at scale |
Running finance operations day to day |
|
Typical business size |
$50m+ revenue, or PE-backed / pre-IPO |
$20m-$150m, or a division of a larger group |
Under $100m, or a function within a larger finance team |
|
Reports to |
CEO or board |
CEO or CFO |
CFO or Financial Controller |
|
Sydney base salary (2026) |
$260,000-$700,000 or more |
$180,000-$280,000 |
$140,000-$200,000 |
|
Deal or board exposure expected |
Usually |
Sometimes |
Rarely |
In Australia, these titles are used inconsistently, which is exactly why so many businesses hire the wrong one. The table above is the general pattern, the sections below explain the actual difference in what each person does.
A CFO sits on the leadership team and is accountable for the financial strategy of the business, not just its financial reporting. That means capital allocation decisions, funding and banking relationships, M&A and due diligence when relevant, investor or board relations, and a genuine seat at the table when the business decides where it is heading.
A good CFO spends less time in the detail of the ledger than most people expect, and more time translating numbers into decisions the CEO and board can act on. If your finance leader is not currently doing any of that, you may not need a CFO yet, however senior the title on their business card looks.
This is where Australian usage gets genuinely inconsistent. In some businesses, particularly those with a UK or multinational parent, Finance Director is simply another name for CFO. In many Australian mid-market businesses, it sits a level below, focused on governance, statutory compliance, financial control and managing the finance function at scale, without the same degree of external investor or board exposure.
A Finance Director is often the right hire for a business that has outgrown a Financial Controller but does not yet need someone setting capital strategy, for example a business expanding into new markets or building out a more sophisticated banking relationship, but not yet raising capital or preparing for a sale.
Head of Finance usually sits below Finance Director and CFO, running the finance team's day to day operations, month end, reporting, budgeting cycles and often a small team of accountants. It is a strong operational role, but not typically a strategic one, and the person in it usually reports to a CFO, a Finance Director, or directly to the CEO in a smaller business.
This is frequently the right hire for a business between $10 million and $30 million in revenue that needs strong financial discipline but does not yet have the complexity to justify a CFO or Finance Director title, or the budget for one.
Ask yourself three questions.
Business size is a reasonable proxy but not a perfect one. A $40 million business preparing for a sale might genuinely need CFO-level capability despite its size, while a stable, founder-owned business turning over $150 million might be perfectly served by a strong Finance Director for years.
The most expensive mistake we see is a business hiring a CFO title and salary when what it actually needed was a strong Finance Director or Head of Finance. It is not just a wasted budget line, the CFO hired into an under-scoped role usually leaves within 12-18 months out of frustration, and the business is back to square one having spent the fee, the salary and the notice period gap twice over.
The reverse mistake is just as costly. Hiring a Finance Director when the business genuinely needs CFO-level strategic input means important capital and growth decisions get made without the right person in the room. See our How Much Does a CFO Earn in Sydney? 2026 Salary Guide for what each level actually costs in Sydney, so you can sense-check the budget against the scope before you write the job ad.
Is a Finance Director senior to a CFO?
Not usually in the Australian market, though it depends on the business. In most mid-market Australian companies, CFO is the more senior title. In some multinational structures, Finance Director and CFO are used interchangeably, or Finance Director sits above a regional CFO.
Can a Head of Finance be promoted into a CFO role?
Yes, and it happens often, but the skills gap is real. Strategic thinking, board exposure and external stakeholder management are not automatic byproducts of running a finance team well, so factor in support or coaching if you are promoting internally.
Do all three roles require the same qualifications?
CA or CPA here in Australia is common across all three at this level; the difference is in scope and strategic exposure rather than technical qualification.
Should a growing business hire a CFO early, just in case?
Generally no. Hiring ahead of genuine need means paying for capability the business is not yet using, and a strong CFO in an under-scoped role tends to get restless. Hire for where the business is now, and revisit in 12-18 months.
Getting the level right before you start a search saves months of wasted process and a great deal of money. If you are not certain which of these three roles fits your business right now, that uncertainty is worth resolving before the brief goes out, not after the shortlist arrives.
We specialise in senior finance recruitment across Sydney and can usually tell you within a short conversation which level your business actually needs. Get in touch with HPR Consulting if you want a second opinion before you write the ad.
