Senior Financial Leadership When You Need it
Most businesses don’t need a full-time CFO right away. But they do get to a point where the numbers need more attention. A Fractional CFO fulfils this role, giving businesses access to senior financial leadership without the associated costs of hiring someone internally. So how much does it cost in comparison? A CFO can typically command anywhere from £80k to £200k a year in the UK, but our Fractional CFO alternative typically comes in at around 40% cheaper.
Fractional CFO Services UK | Financial Strategy & CFO Support for Ambitious Businesses
What Are Fractional CFO Services?
Fractional CFO services give businesses full access to the senior leadership of a CFO, but on a part-time basis that works on your budget.
Just as you would with a full-time hire, you still get the same level of support with forecasting, reporting, planning and leadership, except you don’t have to fork out for a full-time salary.
A Fractional CFO can fit into your team, often acting as the most senior position to oversee financial operations and provide guidance and expertise.
When Do Businesses Use Fractional CFOs...
Most businesses don’t need a CFO at the start, but it becomes more of a necessity as the business grows and becomes more complex. Cashflow might become more of an issue, or perhaps the business isn’t as profitable as it should be. A CFO uses their experience to answer these questions and steer the business in the right direction.
What a Fractional CFO Typically Handles
A fractional CFO usually focuses on the areas that sit above the day-to-day work.
That might include building forecasts, improving reporting, looking at costs and margins, or helping with planning.
They’ll also support decisions, whether that’s hiring, pricing or investing, making sure there’s a clear financial view behind them.
They don’t replace what’s already there. They work alongside it, filling the gap that tends to appear as the business grows.
A happy client - Gentoo Racing
Full-time vs Fractional CFO: Cost Comparison
A full-time CFO is a big commitment and costs a lot for small businesses. In the UK, you’re usually looking at a six-figure salary, plus employer costs, recruitment fees and the time it takes to get the role up and running.
A fractional CFO works differently. Most businesses either pay a monthly fee or a day rate, depending on how much support they need. That might be a few days a month, or something more regular. Typically our costs are 40% cheaper than an inhouse hire.
The key difference is that you’re not paying for a full-time role if you don’t need one.
How it Works in Practice
In practice, a fractional CFO can work around your existing setup at the most senior level. Working alongside them could be a bookkeeper, an accountant or someone internal managing the day-to-day.
The role sits above that, bringing a bit more structure to how things are run. That might mean putting proper reporting in place, building forecasts or just making sure the numbers are being reviewed regularly and used properly.
It doesn’t need to be complicated, it’s usually about tightening things up rather than changing everything.
Fractional CFO Services vs Outsourced Finance
A Fractional CFO focuses mainly on financial leadership and decision making, however outsourced finance focusses on full coverage of the day to day finance operations. Instead of relying on a single individual, businesses gain access to:
-
Bookkeeping & bank reconciliations
-
Sales invoicing & accounts receivable, including credit control/collections
-
Supplier bills & accounts payable, including payment runs and approvals
-
Payroll, PAYE and pensions, to ensure staff are paid on time
-
VAT returns (MTD), including partial exemption and group VAT
-
Monthly management accounts with clear commentary
-
Cash-flow forecasting and scenario planning
-
Budgeting & variance analysis, including rolling forecasts
-
KPI dashboards & board-level reports tailored to your business
-
Year-end statutory accounts preparation
-
Corporation tax coordination and R&D tax relief support
For companies that want both strategic guidance and operational finance support, this model can provide a more complete finance function.
Does My Business Need a Fractional CFO?
Not every business needs a CFO. But if the numbers are getting harder to manage, or decisions are starting to feel less clear, that’s usually when people start to look at it.
For some, a fractional CFO is enough on its own. For others, it’s part of a wider shift towards a more structured finance setup. Either way, it tends to come back to the same thing, having enough visibility to make decisions with confidence.
What services does a Fractional CFO provide?
A Fractional CFO provides top-level strategy and financial insight.
Usually this includes financial planning, cashflow forecasting, performance reporting, budgeting and support with key decisions such as funding or growth. The focus is on helping the business understand its numbers, use them properly and be an authoritative senior voice that guides business decisions based on the numbers.
How much does a Fractional CFO charge?
In the UK, the salary for a full-time CFO can be upwards of £100,000.
For a Fractional CFO, fees vary depending on the level of involvement, but most businesses pay either a monthly retainer or a day rate. In the UK, this often works out significantly lower than hiring a full-time CFO, as you’re only paying for the level of support you actually need. For our clients, the cost of a Fractional CFO is usually 40% cheaper.
Is a Fractional CFO worth it?
For lots of growing businesses, yes.
A fractional CFO can improve financial visibility, support better decision-making and help avoid costly mistakes. The value usually comes from having the right financial insight at the right time, without committing to a full-time hire.
When should you hire a fractional CFO?
Businesses usually consider a fractional CFO when finances become more complex, for example during growth, when preparing for investment, or when cashflow needs closer management. It’s often the stage after basic accounting is in place but before a full-time CFO is needed.
Can a fractional CFO work alongside my existing team?
Yes, in fact it works well for a lot of our clients.
Lots of businesses use fractional CFO support alongside internal staff such as bookkeepers or finance managers. The role is designed to complement, not replace, your existing setup, building a strong finance team without paying the cost of full-time hires.
Is a fractional CFO suitable for small businesses?
Absolutely.
Fractional CFO services are often used by growing businesses that need better financial insight but don’t yet need a full-time CFO. The level of support can also be tailored depending on budget, and you can decide how involved you’d like the Fractional CFO to be.
Do I still need an accountant if I have a Fractional CFO?
Yes, even with a Fractional CFO onboard, an accountant should still handle compliance and year-end work. A fractional CFO focuses on strategy, reporting and helping you make better financial decisions throughout the year, adding a layer of seniority and decision making to your existing finance team.
Know what you need? Get a quote.
Get an instant quoteGet in touch
Free Advice for Tyre Kickers
View all
