What is a fractional CFO?
A fractional CFO is an experienced finance leader who works for a company part-time or for set days each month, often alongside other clients, instead of being employed full-time. They do chief financial officer work, such as forecasting, fundraising, board reporting and building the finance function, for businesses not ready for a full-time hire.
Also calledpart-time CFOoutsourced CFOvirtual CFOCFO services
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- Engagement
- Part-time or retainer
- Work
- Forecasting, fundraising, board
- Suits
- Growing companies before a full-time CFO
How fractional CFO services work
A fractional CFO is engaged directly as a contractor, through a specialist firm, or as part of an accounting firm's advisory services, usually on a monthly retainer for a defined number of days or deliverables. The work sits above bookkeeping and the monthly close: turning management accounts into a forecast and cash plan, preparing for fundraising or a sale, setting KPIs, presenting to the board, and choosing finance systems. Startups and growing companies use fractional CFOs between the stage where an external accountant is enough and the stage where a full-time CFO is justified, or to cover a gap. The arrangement works best when the books are accurate and closed on time, which is why many providers combine CFO services with bookkeeping. Pilot offers CFO services alongside its bookkeeping and tax for startups.
Common questions
When does a company need a fractional CFO?+
Usually when it is raising money, planning fast growth, facing cash pressure or preparing for a sale, but cannot yet justify or attract a full-time CFO.
What is the difference between a fractional CFO and an accountant?+
An accountant or bookkeeper records transactions and produces accounts and returns. A fractional CFO uses those numbers to plan, forecast, raise funds and advise the leadership team.
How are fractional CFOs paid?+
Typically a monthly retainer for a set number of days or deliverables, or a project fee for a specific piece of work such as a fundraising.
Providers of fractional CFO services
Part of Accountio’s accounting technology coverage · Glossary
