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The complete answer to the most searched question about fractional finance leadership. 1,900+ monthly searches, +85% year-over-year.
A Fractional CFO is an experienced Chief Financial Officer who provides strategic financial leadership to companies on a part-time basis—typically working 1-3 days per week. Unlike consultants, fractional CFOs become embedded members of your leadership team, managing your finance function, building investor relationships, and driving financial outcomes at 50-70% less cost than a full-time CFO hire.
Think of a fractional CFO as your company's senior financial leader—attending board meetings, managing your finance team, overseeing fundraising, and taking ownership of strategic decisions—just not five days a week.
The "fractional" model allows companies to access CFO-level expertise and experience (typically 15+ years in senior finance roles) without the commitment, cost, and overhead of a full-time executive hire. According to Office for National Statistics data, part-time senior executive roles have grown 43% since 2020. You pay only for the days you need, scale up or down as requirements change, and can start within days instead of the 3-6 month search process for full-time CFOs.
Works 1-3 days per week (8-24 hours), not full-time. You get CFO thinking when you need it without paying for 40 hours weekly.
Handles high-value work: fundraising, investor relations, board reporting, M&A, financial strategy. Delegates day-to-day tasks to your team.
Typically 15+ years in finance with prior CFO roles. More experienced than most full-time candidates you could afford.
£36k-£120k annually vs £150k-£250k+ for full-time. Save 50-70% while getting better expertise.
Scale from 1 to 3 days per week as needs change. 30-day notice periods. No long-term lock-in.
Begin within 1-2 weeks vs 3-6 months to hire full-time. Critical when you need help NOW.
A fractional CFO handles the strategic financial leadership that drives company growth, while delegating operational work (bookkeeping, payroll, AP/AR) to your finance team or accountant.
Develop 3-5 year strategic plans, annual budgets, scenario planning, and unit economics analysis. Define KPIs and financial targets aligned with business goals.
Lead fundraising rounds (seed to Series B), build financial models for investors, prepare pitch decks, manage due diligence, and maintain ongoing investor relationships and reporting.
Prepare monthly/quarterly board packs, present financial performance, provide strategic recommendations, and ensure governance and compliance.
Manage cash runway, build 13-week cash flow forecasts, optimize working capital, and ensure the company never runs out of money.
Lead buy-side or sell-side M&A, manage due diligence, valuation analysis, deal structuring, and post-acquisition integration.
Hire and manage controllers, FP&A analysts, and accounting staff. Build processes, implement systems (NetSuite, Xero), and establish financial controls.
Build SaaS metrics dashboards, cohort analysis, pricing models, scenario planning ("what if" analysis), and ROI calculations for major initiatives.
Key principle: Fractional CFOs focus on strategic thinking and leadership that only a CFO can do. They delegate or outsource operational tasks.
Most companies engage a fractional CFO during critical growth phases or when they need CFO expertise but can't justify the cost of a full-time hire.
"We're raising a Series A in 6 months and need investor-ready financials, a compelling model, and someone who speaks VC language."
"We've gone from £2M to £8M ARR in 18 months. Our founder-led finance is breaking. We need real FP&A and systems."
"We have 7 months of runway and our board wants a credible plan to extend it to 18 months or we need to fundraise immediately."
"Our investors want monthly board packs with unit economics, cohort analysis, and scenario planning. We can't deliver that today."
"We're acquiring two competitors and need someone to lead due diligence, valuation, and integration."
"We're opening US and EU entities. We need multi-currency forecasting, transfer pricing, and someone who's done this before."
Sweet Spot for Fractional CFOs
Companies with £1M-£20M revenue who need strategic CFO expertise but don't require 40 hours weekly of CFO time. Below £1M, a good accountant often suffices. Above £20M, you typically need full-time.
Fractional CFOs work on flexible engagement models. Here are the four most common structures:
Structure:
Book 1-3 specific days per week (e.g., every Tuesday + Thursday). Pay only for days worked.
Typical Cost:
£700-£1,500/day
2 days/week = £8,400-£12,000/month
Best For:
Ongoing strategic support, embedded team member feel
Flexibility:
Scale up/down monthly, 30-day notice
Structure:
Fixed monthly fee for defined scope (e.g., 40 hours, board reporting, fundraising support)
Typical Cost:
£3,000-£10,000/month
Depending on scope and seniority
Best For:
Predictable budgeting, defined deliverables
Duration:
Typically 6-12 month agreements
Structure:
Fixed fee for specific project with clear deliverables and timeline
Typical Cost:
Series A raise: £25-£50k
M&A due diligence: £15-£30k
IPO readiness: £50-£75k
Best For:
One-time initiatives, clear scope
Duration:
3-6 months typically
Structure:
Track hours worked, invoice monthly. More admin overhead.
Typical Cost:
£150-£500/hour
10-30 hours/month
Best For:
Very small engagements, advisory only, board meeting attendance
Drawback:
Harder to budget, incentive misalignment
| Factor | Fractional CFO | Interim CFO | Consultant | Full-Time CFO |
|---|---|---|---|---|
| Time Commitment | 1-3 days/week | 5 days/week | Varies, often hourly | 5 days/week |
| Duration | 6-18+ months (ongoing) | 3-12 months (temporary) | Project-based | Permanent |
| Annual Cost (UK) | £36k-£120k | £100k-£180k | £50k-£200k | £150k-£250k+ |
| Role Type | Leadership team member | Gap-fill leadership | External advisor | Executive leadership |
| Ownership | Full accountability | Full accountability | Advisory only | Full accountability |
| Team Management | Yes, but delegates ops | Yes, full-time | No | Yes, full-time |
| Board Interaction | Attends & presents | Attends & presents | Rarely | Attends & presents |
| Notice Period | 30 days | Defined end date | Per project | 3-6 months |
| Experience Level | Very senior (15+ yrs) | Senior (12+ years) | Varies widely | Varies (8+ years) |
| Best For | £1M-£20M revenue, strategic needs | Transition periods, emergencies | Specific expertise, one-off projects | £20M+ revenue, complex ops |
Here's how companies at different stages use fractional CFOs:
£3.5M ARR, 25 employees, London
Challenge: Planning Series A raise in 6 months. Founders running finance in spreadsheets. No financial model. Board unhappy with reporting quality.
Solution: Hired fractional CFO 2 days/week (Tue + Thu) at £1,100/day = £8,800/month for 9 months.
Results: Built investor-ready financial model, implemented Xero + Adaptive Planning, hired Financial Controller, prepared board pack template, supported Series A pitch process. Successfully raised £8M Series A. CFO scaled down to 1 day/week post-fundraise.
Cost vs Full-Time: £79,200 total vs £150k+ salary for full-time CFO they didn't need post-fundraise.
£12M revenue, 75 employees, Manchester
Challenge: Acquiring two competitors in 6 months. Needed due diligence expertise and integration planning. Existing Finance Director had never done M&A.
Solution: Engaged fractional CFO on project basis: £45,000 fixed fee for both acquisitions over 6 months.
Results: Led buy-side due diligence, identified £800k working capital issues in target #1 (saved deal), structured earn-outs for both deals, led post-acquisition integration. Integrated finance teams within 90 days.
Outcome: After M&A complete, company kept fractional CFO at 1 day/month for strategic advisory.
£6M revenue, 18 employees, Brighton
Challenge: Burning £80k/month, 7 months runway. Grew too fast, inventory out of control, no cash flow visibility.
Solution: Emergency fractional CFO engagement: 3 days/week at £1,200/day = £14,400/month for 4 months, then 2 days/week ongoing.
Results: Built 13-week cash flow forecast, implemented weekly cash meetings, renegotiated payment terms with suppliers (+30 days), optimized inventory (freed £200k cash), cut burn to £35k/month. Extended runway from 7 to 16 months.
Company saved: Would have gone insolvent without intervention. Now profitable and growing.
Explore our complete Fractional CFO hub with pricing guides, job opportunities, and resources.