The role of the CFO in Latvian companies – a necessity or a luxury?

The position of CFO is relatively expensive in Latvian conditions, however, without a CFO it is difficult to create meaningful budgets, plan investments and attract financing, as well as ensure the development and implementation of the company's strategy, including capital appreciation. What are the available economic solutions and what are the advantages of outsourcing the CFO (so-called "fractional CFO"), read in the latest article by Reinis Ceplis, partner at Baker Tilly Baltics AS.

In Latvia's economy, the concept, role, and importance of the CFO began to emerge deeply and bring tangible benefits to companies in the late 1990s and early 2000s. Nowadays, the position is common in many medium and large companies, but understanding of the CFO’s role is still often insufficient. It should be emphasized that the CFO is not the chief accountant—the two roles work in tandem. The accountant ensures accurate record-keeping and financial reporting, while the CFO needs forward-looking, strategic planning, risk management, and the ability to explain past results reflected in the company’s financial data. Both are partners, and both roles are important.

Without a CFO, it is difficult to create meaningful budgets, plan investments, attract financing, and ensure the company’s strategy development and execution, including capital value growth. The CFO works closely with the company’s owners and board and is essentially part of the strategic management core, even if not formally a board member.

However, the CFO position in Latvia is relatively costly. Data from the portal algas.lv shows that 80% of financial managers in Latvia earn between 2019 and 6090 euros per month. According to the State Revenue Service’s information https://www.vid.gov.lv/lv/informacija-par-darba-vietam-2025gada-atbilstosi-profesiju-klasifikatoram, in July 2025 the average hourly rate for a CFO was 23.39 euros. Calculated for a 168-hour work month, this amounts to roughly a 3930-euro gross salary, and the total cost to the company, including taxes and employee additional expenses, averages around 6000 euros per month. In large companies or for highly qualified specialists, these costs are even higher.

For this reason, many companies - especially small and medium-sized  -still view the CFO need with skepticism, considering it "some kind of different chief accountant" or a broad-profile financial manager with vague tasks. In reality, the CFO role is much more specific: it includes attracting financing or investors, developing strategy, handling company purchase or sale transactions, business expansion, and systemic changes like replacing accounting software. These are not everyday tasks and require a high level of expertise.

Is there a solution? Yes - the market has been developing outsourced CFO services (the so-called "fractional CFO") for several years. These allow companies to engage an experienced professional on a part-time or project basis. This means management can flexibly use the professional’s knowledge exactly when needed without bearing full-time employment costs. Moreover, outsourced CFOs often work more efficiently - their motivation is to achieve specific results rather than simply keeping a position.

For such cooperation to be successful, it is important for the company to precisely define its needs and hire a suitable, trustworthy specialist. Then the CFO becomes a valuable bridge between management and accounting - ensuring strategic intentions are based on real financial data and a sustainable approach.

Read more about the advantages of outsourced CFO services and global trends in the article by our international network colleagues at Baker Tilly: https://www.bakertilly.global/insights/cfo-for-hire.