For startups and growing technology companies, financial leadership is essential long before hiring a full-time Chief Financial Officer becomes a practical decision.

Founders must manage cash runway, allocate capital, prepare for fundraising, and build financial infrastructure that can support growth. For international companies establishing operations in Israel, these responsibilities also involve local accounting, payroll, reporting requirements, and coordination across jurisdictions.

CFO as a Service (CFOaaS) provides access to experienced financial leadership through an outsourced engagement, without requiring a permanent executive hire.

The model enables companies to obtain strategic financial guidance and operational oversight at a level aligned with their stage, complexity, and business objectives.

What Is CFO as a Service?

CFO as a Service is an outsourced financial leadership model in which an external CFO, or a specialized finance firm, performs some or all of the responsibilities traditionally associated with an in-house Chief Financial Officer.

Unlike conventional accounting services, which primarily focus on recording and reporting financial transactions, CFOaaS takes a forward-looking approach.

It connects financial data with business strategy, helping management understand capital requirements, evaluate performance, and make informed decisions.

The scope can range from part-time strategic advisory to comprehensive financial management supported by accounting, controllership, and payroll professionals.

For venture-backed startups, CFOaaS can provide executive-level financial expertise without the fixed cost and organizational commitment of a full-time CFO.

What Does a CFO as a Service Provider Actually Do?

The responsibilities depend on the company’s maturity and operating structure, but typically include six core areas.

1. Financial Strategy and Business Planning

A CFO translates business objectives into measurable financial plans, including revenue assumptions, operating budgets, hiring projections, and capital allocation.

For technology companies, this may involve SaaS unit economics, customer acquisition efficiency, gross margins, and profitability scenarios.

2. Cash Flow Forecasting and Runway Management

A CFO develops cash flow forecasts, monitors burn rate, and evaluates how strategic decisions affect liquidity.

For startups operating between funding rounds, this visibility is critical to determining when additional capital may be required.

3. Fundraising and Investor Reporting

CFOaaS providers support fundraising readiness through financial modeling, investor reporting, due diligence preparation, and board-level financial presentations.

They help founders communicate the financial assumptions behind their growth strategy and maintain consistent reporting to investors.

4. Financial Planning and Analysis (FP&A)

FP&A connects operating performance with financial forecasts.

It includes budget-versus-actual analysis, KPI monitoring, scenario modeling, and periodic forecast updates that enable management to respond to changing business conditions.

5. Financial Controls and Reporting

As companies scale, financial reporting must become more structured.

A CFO oversees reporting processes, internal controls, and coordination with accounting teams to improve the reliability of financial information.

6. Cross-Border Financial Management

Companies operating across multiple jurisdictions require coordinated financial oversight.

This may involve consolidated reporting, multi-currency operations, intercompany transactions, and collaboration with local tax and legal advisers.

For international businesses entering Israel, these capabilities are particularly relevant.

CFO as a Service vs. an In-House CFO

Both models provide financial leadership, but their operating structures differ.

For early-stage startups, CFOaaS can provide a flexible alternative to building an executive finance function internally.

For larger organizations, an in-house CFO may become preferable when financial complexity requires continuous executive involvement.

The two models are not mutually exclusive. Some companies use outsourced finance professionals alongside an internal leadership team.

CFO as a Service for International Companies Expanding into Israel

Establishing operations in Israel creates financial requirements that extend beyond the initial decision to enter the market.

An international company may need to establish a local entity, hire employees, manage payroll, implement accounting processes, and coordinate financial reporting with its overseas headquarters.

The appropriate structure depends on the nature of the activity, ownership arrangements, and applicable legal and tax requirements.

A CFOaaS provider with Israeli and international experience can help management establish financial processes that support local operations and group-level oversight.

Key considerations include:

• Local financial infrastructure: Establishing accounting, reporting, payment, and financial control procedures.
• Payroll and employment-related costs: Budgeting for compensation and coordinating payroll administration in accordance with applicable Israeli requirements.
• Intercompany transactions: Supporting financial documentation, reconciliations, and coordination with transfer pricing specialists where relevant.
• Group reporting: Aligning local financial information with the reporting requirements of an international parent company.
• Financial planning: Forecasting the costs of recruitment, research and development, office operations, and expansion.
• Tax and regulatory coordination: Working with qualified advisers to address applicable Israeli obligations.

For multinational companies, the objective is to maintain reliable financial oversight across jurisdictions while ensuring that local operations receive appropriate support.

When Should a Startup Consider CFO as a Service?

There is no universal revenue or headcount threshold for engaging a CFO.

The decision should reflect the complexity of the company’s financial requirements.

Common indicators include:

1. Preparing for a Seed, Series A, or subsequent financing round.
2. Needing reliable cash runway forecasts and financial models.
3. Expanding operations or hiring employees in Israel.
4. Managing subsidiaries or transactions across multiple countries.
5. Facing increasingly complex investor or board reporting requirements.
6. Requiring financial leadership beyond the capabilities of an existing bookkeeping or accounting function.

For many startups, engaging CFO-level expertise before a major financing or expansion milestone allows financial processes to develop alongside the business.

How to Choose the Right CFO as a Service Provider

Selecting a provider requires more than evaluating accounting qualifications.

Founders should consider whether the firm understands venture-backed businesses, international operations, and the financial requirements of their specific industry.

Relevant questions include:

• Does the provider have experience with startups at our growth stage?
• Can it support fundraising, financial modeling, and investor reporting?
• Does it understand Israeli financial operations and cross-border structures?
• Can it coordinate CFO services with accounting, controllership, and payroll?
• How will responsibilities, reporting frequency, and senior-level involvement be defined?

The strongest engagement combines strategic financial insight with the operational capabilities required to implement financial decisions.

CFO as a Service in Israel: How ERB Proximo Supports Growing Companies

ERB Proximo provides outsourced financial services for startups, technology companies, and multinational organizations operating in Israel and international markets.

Its services include CFO-level financial management, controllership, bookkeeping, payroll, financial reporting, and support for multinational operations.

For startups, this integrated approach helps establish financial infrastructure, monitor cash flow, and prepare financial information for management and investors.

For international companies establishing a presence in Israel, ERB Proximo supports local financial operations and coordination with overseas finance teams, alongside appropriate legal and tax advisers.

By combining strategic CFO expertise with ongoing financial operations, companies can access a finance function designed to evolve with their business.

Frequently Asked Questions

Is CFO as a Service the same as a fractional CFO?

The terms are closely related. A fractional CFO typically provides part-time executive financial leadership, while CFO as a Service may also include supporting accounting, controllership, and financial operations, depending on the provider.

Can a foreign company use CFO as a Service in Israel?

Yes. International companies can engage an outsourced CFO provider to support Israeli financial operations, reporting, budgeting, and coordination with overseas headquarters.

Does CFO as a Service replace bookkeeping?

Not necessarily. Bookkeeping records financial transactions, while CFOaaS focuses on financial oversight and strategy. Some providers offer both services through an integrated finance team.

Can CFOaaS support fundraising?

Yes. CFOaaS can support financial modeling, investor reporting, capital planning, and due diligence preparation. It does not guarantee a successful fundraising outcome.

When should a startup transition to a full-time CFO?

A full-time CFO may become appropriate when the company’s size, organizational complexity, and strategic demands require dedicated executive leadership.

Build Your Financial Foundation with ERB Proximo

Whether you are launching a startup in Israel, preparing for your next funding round, or expanding an international business into the Israeli market, effective financial leadership can support stronger decisions and sustainable growth.

Explore ERB Proximo’s CFO as a Service solutions and build a financial infrastructure aligned with your next stage of growth.