onlycfo.io · 2024-02-09
· 846d
Guide to Headcount Efficiency and Salary Benchmarks for Finance Roles
The article addresses how software companies can balance headcount costs (~70% of expenses) with revenue growth, emphasizing proper staffing over arbitrary cost-cutting. It provides guidance on fixing inefficiencies from the ZIRP era (title inflation, overhiring, unsustainable salaries) and introduces zero-based budgeting and strategic hiring practices. The article concludes with cash compensation benchmarks for CFO and accounting/finance roles across different company stages.
Metrics in this report
Other Costs (Rent, Insurance, etc.) as % of Total Expenses
5-10percent
typical
Software businesses
People Costs as % of Total Expenses
65-75percent
typical
Software businesses
Software/Infrastructure Costs as % of Total Expenses
15-25percent
typical
Software businesses