A fractional CFO is a senior finance leader who works for your company part-time, usually on a monthly retainer, instead of as a full-time employee. You get CFO-level judgment on cash, reporting, fundraising, and strategy for a fraction of the cost of a full-time hire, which is where the name comes from.
For most venture-backed startups between seed and Series B, it’s the practical answer to a real gap: the business needs someone who owns the numbers and can sit in front of a board, but not 40 hours a week of it, and not a $300,000 to $400,000 salary plus equity.
What a fractional CFO actually does
The work varies by company and stage, but most engagements cover some combination of:
Cash and runway. Tracking burn, building a 13-week cash flow, and knowing exactly when the company needs to raise. See our guide to the 13-week cash flow forecast.
Financial model and forecast. A model built from the unit economics up, with assumptions you can defend when an investor pushes on them.
Board and investor reporting. The quarterly package, the variance walk, and the prep before each meeting. See what goes in a startup board reporting package.
Fundraising and diligence. Getting the financials, metrics, and data room ready before the term sheet, then running the diligence process. See our Series A due diligence checklist.
Strategic decisions. Pricing, hiring plans, vendor commitments, and the trade-offs between growth and runway.
Oversight of the finance function. Making sure the bookkeeping, close, payroll, and compliance underneath all of this are actually right.
How it differs from a bookkeeper or controller
A bookkeeper records transactions. A controller makes sure the books are accurate, closed on time, and compliant. A CFO uses those numbers to make decisions and explains them to the board and investors.
All three matter, and at many startups one engagement covers more than one of them. Our comparison of fractional CFO vs. controller vs. VP Finance covers where the lines fall.
How it differs from a full-time CFO
The skills are the same. The difference is time and cost. A full-time CFO makes sense when the finance function needs daily leadership: a large team to manage, a complex multi-entity structure, or a path to going public. Before that point, most of a full-time CFO’s week would go to work that doesn’t need a CFO.
A fractional CFO covers the parts that do need that level of judgment, on a schedule that matches how often the company actually needs them.
Fractional, virtual, outsourced, interim: are they different?
Mostly, these terms describe the same idea from different angles. “Fractional” describes the time commitment. “Virtual” describes working remotely. “Outsourced” describes the relationship. “Interim” usually means a full-time stand-in while a company searches for a permanent CFO, which is a different arrangement. Our comparison of fractional, outsourced, and interim CFO goes deeper on the distinctions.
What a fractional CFO costs
Pricing depends on how much work the company needs, how often the board meets, whether a raise is underway, and whether the engagement includes the accounting work underneath. Our breakdown of what a fractional CFO costs covers the market, and our pricing page shows how we structure it.
When does a startup need one?
The common triggers are a fundraise coming in the next 6 to 12 months, a first institutional board, an audit on the horizon, burn that nobody can explain with confidence, or a founder spending too many hours on finance instead of the business. Our guide to when to hire a fractional CFO walks through each of these.
Common questions
Is a fractional CFO worth it for an early-stage startup?
Usually from around seed or Series A onward, when there’s a board to report to, a raise to prepare for, or real money to manage. Before that, a good bookkeeper and a founder who reviews the numbers monthly is often enough.
How many hours does a fractional CFO work?
It varies with the company’s needs and changes over time. Engagements are typically scoped by deliverables and responsibilities rather than a fixed number of hours, with more time around board meetings, fundraises, and audits.
Can a fractional CFO work remotely?
Yes, and most do. Nearly all of the work happens in the accounting system, the model, the data room, and video meetings. See our virtual CFO services.
What’s the difference between a fractional CFO and a CFO consultant?
A consultant is usually brought in for a specific project. A fractional CFO has ongoing responsibility for the finance function and is accountable for the numbers month after month.
Does a fractional CFO replace our bookkeeper?
Not necessarily. Some companies keep their bookkeeper and add CFO oversight. Others move everything to one provider so the books, the close, and the strategic work are handled together.
Trying to figure out whether your company needs a fractional CFO, or what level of support fits your stage? Start a conversation.