Many businesses hit a point where financial questions start piling up, how much can we afford to hire? Are we spending too fast? Will our current runway last?
But not every company needs a full-time Chief Financial Officer. For those in-between stages, a fractional CFO can step in. This is a part-time finance leader who brings expertise to help you make better decisions without committing to a full-time hire.
What Is a Fractional CFO?
A fractional CFO is a senior finance professional who works on a part-time or contract basis. They take on CFO-level responsibilities for a business that may not yet be ready for a full-time role.
Unlike bookkeepers or accountants, they’re focused on direction, decision-making, and helping you plan ahead.
But the label “fractional CFO” is used loosely. Some firms use it to describe services that are actually accounting or controller-level support. The difference lies in the background, true fractional CFOs have worked in finance leadership roles and know how to work directly with founders and executive teams.
What They Actually Do
- Financial Planning
- Planning revenue and costs
- Mapping out hiring timelines
- Looking at different outcomes depending on growth, delays, or new markets
- Managing Cash Flow
- Monitor income and expenses
- Spot early warning signs of upcoming shortfalls
- Put simple systems in place to avoid trouble
- Reporting and Reviews
You don’t need 30 charts and dashboards. You need the right set of reports that tell you how your business is performing.
A good CFO will help set up a clear reporting schedule that includes:
- Key numbers that matter to your business
- Monthly and quarterly reviews
- A reporting rhythm that helps keep your team aligned
- Business Decisions and Scenarios
Need to hire a team? Launch a new feature? Enter a new market?
Your CFO helps model what those choices look like financially. That way, you can see how each option plays out before you commit. This isn’t about fancy math, it’s about using what you already know to make thoughtful decisions.
- Support for Fundraising
Raising money? A fractional CFO can help by:
- Building your financial model
- Refining your story for investors
- Sitting in on meetings or answering investor questions
- Building the Right Setup
As your company grows, your financial processes will need better systems. Your CFO can help you put together the right setup, tools, people, and workflows to handle day-to-day needs and long-term growth.
This might include:
- Choosing software for billing, payroll, or expenses
- Bringing on bookkeepers or finance assistants
- Setting up processes that don’t fall apart as the team expands
When to Consider Hiring One
- You’re growing and can’t answer basic financial questions
- You're preparing to raise funds or get acquired
- You want better reports but don’t need a full-time finance lead
- You feel your current setup is too slow or scattered
Budgeting for a Fractional CFO
Hiring a fractional CFO means bringing in an experienced finance professional who can handle core responsibilities without needing a full-time role. The cost typically starts at a base fee that reflects the expertise, involvement, and outcomes expected. Instead of being charged by the hour, the pricing usually aligns with the nature and depth of the work involved. This helps keep the focus on results, not just time spent.
Every engagement is different, so the pricing is structured around what the business truly needs. A good CFO will help define the scope clearly and work within that to deliver meaningful outcomes.
Leave A Comment