Fractional CFO vs Outsourced Accounting
Strategic leadership vs operational support
Key Takeaways
- 1Fractional CFOs work 1-3 days per week, providing senior expertise without full-time costs
- 2UK day rates range from £800 to £1500, depending on experience and sector
- 3Typical engagements save 50-70% compared to full-time executive hires
- 4Ideal for startups, scale-ups, and SMEs needing strategic leadership
- 5No employment overhead: no pension, NI, benefits, or notice periods
Different Problems, Different Solutions
Outsourced accounting handles transaction processing, bookkeeping, and compliance reporting. A fractional CFO provides strategic financial leadership. Most growing businesses eventually need both, but at different stages.
Outsourced Accounting: The Foundation
Outsourced accountants handle AP/AR, payroll processing, bank reconciliation, and basic financial reporting. They keep your books accurate and compliant—essential, but not strategic.
Fractional CFO: Strategic Layer
A fractional CFO builds on accurate books to provide forecasting, strategic analysis, investor relations, and financial decision support. They use financial data to drive business decisions.
When to Add Each
Start with outsourced accounting early. Add a fractional CFO when you need strategic financial guidance—typically when raising capital, scaling rapidly, or facing complex financial decisions.
Cost Comparison
Fractional vs Full-Time Executive
Your Potential Savings
£180k+
Time Allocation
How fractional executives spend their time
UK Fractional Executive Day Rates
Compare day rates across C-suite roles
Fractional vs Interim vs Full-Time
Choose the right engagement model
| Aspect | Fractional | Interim | Full-Time |
|---|---|---|---|
| Time Commitment | 1-3 days/week | 4-5 days/week | 5 days/week |
| Duration | Ongoing/flexible | 3-12 months | Permanent |
| Annual Cost | £50-150k | £150-300k | £200-400k+ |
| Best For | SMEs, startups, scale-ups | Crisis, transitions | Large enterprises |
| Flexibility | ★★★ High | ★★☆ Medium | ★☆☆ Low |
Costs are indicative UK market rates. Actual costs vary by role, experience, and sector.
Calculate Your Day Rate
Calculate Your Potential Income
Based on 2.5 days/week x 2 clients x 48 working weeks. CFO UK average day rate: £1000.
BetaThis calculator provides rough estimates for illustration only. Actual rates and salaries vary based on location, experience, industry, and market conditions.
Related Executive Roles
Complementary leadership for your organisation
Industry Resources & Authority Links
Related Pages
The Fractional Executive Trend
Industry data on the rise of fractional leadership
of executives who moved to fractional work report higher job satisfaction
Source: Harvard Business Review ↗Platform Stats
Founder's background
📊 CFO Market Snapshot
💰 CFO Day Rates
Based on 2026 market data for UK CFO roles.
