A Fractional CFO: What Is It and What to Expect Bennett Thrasher

On the other hand, a retainer fee can be a better choice if you need ongoing support and want to ensure that your fractional CFO is available when you need them. Businesses should start by evaluating their financial goals, saas fractional cfo assessing their current financial resources and cash flow management practices, and setting clear objectives. Fractional CFOs assist in setting up financial systems, securing initial funding, and establishing financial strategies to support growth.

Average Cost Range for Hiring a Fractional CFO

A fractional CFO can provide the strategic guidance needed during these critical periods. Hiring a fractional CFO is ideal when your business reaches a point where the financial complexity outpaces your current team’s capabilities. As your company grows, you may encounter challenges such as managing your cash flow, planning for expansion, or navigating financial uncertainty. These situations demand the insight and expertise of a CFO, but a full-time position may not be practical or necessary.

Retainer-Based Pricing

You may also simply see financial professionals market the actual services they provide, without referring to the any of these job titles. In a “services we offer” section of their website you may see things like ‘forecasting and cash management’ or strategic financial planning’. The average annual salary of a full-time CFO in the U.S. is around $200,000–$400,000, not including benefits, bonuses, or stock options. Hiring a fractional CFO allows businesses to access similar expertise at a fraction of the cost, with flexibility to scale services up or down as needed. For instance, hiring a CFO part-time for recurring advisory services may cost less than a full project-based engagement, but it depends on the intensity of income statement support required.

Signs You’ve Got the Wrong CFO

One way to narrow a search is to ask others in your industry for recommendations. You can narrow candidates by their service offerings, prioritizing those who specialize in your identified needs or who offer a broad range of services. Try asking candidates to provide specific examples of the advice they’ve provided to other startups and the outcomes of their leadership. A fractional CFO can also be a good investment if you’re experiencing rapid growth, want to secure additional funding, or need strategic planning advice after funding has been obtained. Plus, outside of specific goals, one of the key benefits of a fractional CFO is that it may feel (or be) less risky than a full-time hire.

• For instance, if you require a fractional CFO for 20 hours a month at $250 per hour, your annual cost would be approximately $60,000 — saving you more than $383,000 compared to a full-time hire.
• A fractional CFO can help develop a budgeting and forecasting process that is tailored to the company’s specific needs.
• This will give you insight into the Fractional CFO’s performance, communication skills, and ability to deliver results.
• A fractional CFO not only provides high-level financial strategy, they also help to implement the strategy, fine-tune systems, train personnel, facilitate strategic partnerships and relationships, and more.
• Sustain CFO’s team brings decades of entrepreneurial experience to their role, delivering expert guidance in navigating complex financial strategies and decisions.

By leveraging these tactics, the Fractional CMO benefits your organization with an undeniably sharper competitive edge, fostering not only growth but sustainability in the longer term. Without clear onboarding processes and communication channels, fractional leaders may struggle to build trust and collaboration with team Bookstime members which can negatively impede their effectiveness as leaders. The first few months as a startup’s first finance hire are instrumental in shaping future success. Here, our VP of finance, Dan Kang, shares advice for getting off on the best foot.

• Leadership’s lack of awareness can not only result in politicized DEI policies but can raise questions about what an illegal DEI policy looks like.
• At TLG Marketing, we’ve seen firsthand how our Fractional CMO services enable businesses to adapt quickly to market changes and seize opportunities.
• Some businesses hire a CFO on a project basis for specific needs, such as mergers or cash flow audits.
• For businesses requiring more frequent guidance, monthly financial reviews, and strategic planning, costs range from $8,000 to $12,000 per month.
• An hourly rate model allows the flexibility to pay for services as needed, making it a cost-effective option for businesses with limited or specific requirements.

As we pointed out above, several factors influence the cost of hiring a Fractional CFO. Here are details on how Fractional CFOs charge their clients and what you might expect to pay in different situations. That is why, when deciding to hire a Fractional CFO, it’s essential to understand exactly what you’re paying for.