The fractional CFO category is the most mature of the fractional executive functions. Most $5M-$50M B2B companies use one. But scope and pricing vary enormously — and most companies hire the wrong type for their stage. Here's the honest breakdown.
A fractional CFO is a senior finance executive (typically 12-20+ years experience, often CPA + operator background) embedded part-time with a company. Typical engagement: $8K-$20K/month for 1-2 days/week, 12-24 month commitments. Best fit: $3M-$30M ARR companies needing strategic finance leadership beyond what a controller provides. Not the same as a bookkeeper or controller — different role, different price.
Five categories of scope:
1. Strategic finance. Forecasting, financial planning, scenario modeling, KPI architecture.
2. Fundraising support. Investor materials, due diligence prep, term sheet negotiation support.
3. M&A and exit prep. Buy-side diligence, sell-side prep, deal structure analysis.
4. Board reporting and finance communications. Monthly/quarterly reports, board prep, audit committee support.
5. Finance team leadership. Hiring controller/staff accountant, building finance ops processes.
What it's NOT: bookkeeping (controller/bookkeeper), tax filing (CPA firm), payroll processing (HR/PEO).
Three different roles often confused:
• Bookkeeper ($30-$80/hr): records transactions, manages AP/AR, monthly close mechanics.
• Controller ($80K-$180K full-time, $5K-$10K/mo fractional): oversees accounting, prepares financial statements, manages audit, supervises bookkeepers.
• Fractional CFO ($8K-$20K/mo): strategic finance, forecasting, fundraising, board reporting, exit prep.
Most growing companies need ALL THREE roles filled in some form — different people, different skills, different price points. Hiring a fractional CFO to do bookkeeping is wildly inefficient; hiring a bookkeeper to do strategic finance produces bad strategy.
Five signals:
1. You're raising capital and need investor-grade financials and modeling
2. You're $3M+ ARR and your founder is doing financial work that's distracting from CEO duties
3. You need monthly board reporting and don't have a finance leader to produce it
4. You're preparing for M&A (buy or sell side)
5. Your finance function has scaled past 'controller + bookkeeper' but doesn't yet justify a full-time CFO
Typical fractional CFO engagement: $8K-$20K/month for 1-2 days/week. Variance:
• Stage: $3M-$10M ARR engagements lean toward $8K-$14K. $10M-$30M ARR engagements lean toward $14K-$20K.
• Scope: Standard CFO duties at lower end. Active fundraising or M&A work at higher end.
• Industry expertise: SaaS metrics, fintech finance, healthcare regulatory — operators with specific industry depth charge premium.
Compare to: full-time CFO at $250K-$400K base + equity ($350K-$550K all-in). Fractional is 30-50% of full-time cost.
Typical engagement structure:
• Weeks 1-4: Diagnostic. Review financial state, assess accounting hygiene, identify gaps, build initial model.
• Weeks 5-8: Foundation. Clean up reporting, establish forecasting rhythm, set up KPI dashboards.
• Weeks 9-12: Operating cadence. Monthly close discipline, board reporting templates, regular finance review with CEO.
• Quarter 2+: Strategic projects. Whatever's the immediate need — fundraising, M&A, restructuring, exit prep.
Fractional makes sense when: $3M-$30M ARR, defined need (raise, exit, restructure), can't yet justify $400K+ for full-time.
Full-time makes sense when: $30M+ ARR with complex finance, public-company prep, deep institutional finance knowledge needed permanently.
Pattern: most growing companies hire fractional CFO at $3M-$5M ARR, transition to full-time at $25M-$50M ARR. The transition is usually triggered by a strategic event (fundraise, M&A, IPO prep).