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Should you hire a fractional or full-time CFO? This comprehensive comparison covers costs, benefits, and a decision framework to help you choose the right financial leadership for your business stage.
| Factor | Fractional CFO | Full-Time CFO |
|---|---|---|
| Best for revenue | £1M-£50M | £50M+ |
| Annual cost | £30K-£120K | £150K-£300K+ |
| Time commitment | 1-3 days/week | 5 days/week |
| Hiring speed | 2-4 weeks | 3-6 months |
| Flexibility | High (scalable) | Low (fixed) |
| Notice period | 1-4 weeks | 3-6 months |
| Experience breadth | Multiple industries | Deep specialization |
The true cost difference extends beyond base salary. Here's the complete financial picture including all employer costs:
Annual Savings: £187,640 (62% cost reduction)
This saving can fund additional finance team members, systems, or be reinvested in growth initiatives. Learn more about fractional CFO costs.
Many successful scale-ups follow a natural progression path. Here's how to manage the transition effectively:
Begin with 1-2 days per week to establish financial processes, reporting, and strategic planning. This phase typically lasts 12-24 months.
Increase to 2-3 days per week as complexity grows. Fractional CFO helps recruit and build the finance team, prepares systems for scale.
Assess whether operational complexity justifies full-time leadership. Consider IPO plans, investor requirements, and daily management needs.
Either convert fractional CFO to full-time (if they're interested and suitable) or have them recruit and onboard their full-time successor.
This staged approach minimizes risk, allows you to validate CFO value before full commitment, and ensures smooth knowledge transfer when moving to full-time.
Some companies use a hybrid approach, combining fractional expertise with full-time finance leadership at a more junior level:
Strategic leadership, board reporting, investor relations, major projects, team mentoring
Day-to-day operations, team management, process execution, management reporting
vs £270K+ for full-time CFO alone. Provides strategic CFO expertise PLUS daily operational coverage - better capability at lower cost.
Use this framework to determine which option is right for your business:
Challenge: Raising Series B (£20M round), need investor-ready financials and 3-year forecast model
Solution: Fractional CFO (3 days/week for 6 months, then 2 days/week ongoing)
Outcome: Completed fundraise successfully, established board reporting, built finance team (hired FC and FP&A analyst). Saved £120K vs full-time while getting specialized fundraising expertise.
Challenge: Complex multi-site operations, quarterly PE reporting, preparing for exit in 3 years
Solution: Full-time CFO with manufacturing and PE portfolio experience
Outcome: Daily operational oversight, implemented ERP across 4 sites, led 3 bolt-on acquisitions, delivered 2.8x exit multiple. Required full-time presence for integration complexity and PE relationship management.
Challenge: Managing cash flow across 40 projects, partner reporting, tax planning
Solution: Fractional CFO (2 days/week) + full-time Financial Controller (hybrid model)
Outcome: CFO handles strategic planning and partner relations, FC manages daily operations. Total cost £195K vs £270K+ for CFO alone, with better operational coverage.
Whether you need fractional or full-time CFO expertise, Fractional Quest connects you with experienced financial leaders matched to your business stage and needs.
Complete guide to fractional CFO roles and responsibilities
Detailed cost breakdowns and ROI analysis
2025 rate benchmarks by experience and location
When and how startups should engage fractional CFOs