What Fractional CFOs Actually Do (And When You Need One)

The term "fractional CFO" gets thrown around a lot. Sometimes it means a part-time bookkeeper. Sometimes it means a strategic finance partner. The difference matters.

Here's what fractional CFOs actually do—and when you need one.

What Fractional CFOs Actually Do

A true fractional CFO brings CFO-level strategic thinking on a part-time basis. They're not doing your bookkeeping—they're helping you make better financial decisions.

Strategic Planning

Fractional CFOs help you:

Build financial models and forecasts
Set realistic budgets and targets
Plan for growth, fundraising, or exits
Understand the financial implications of strategic choices

They translate your business strategy into financial reality.

Financial Analysis

They dig into your numbers to answer questions like:

Where are we making money? Where are we losing it?
What's our true customer acquisition cost?
Are we pricing correctly?
What's our path to profitability?

They don't just report the numbers—they explain what they mean.

Systems and Processes

They help you build financial systems that scale:

Monthly close processes
Reporting dashboards
Budgeting and forecasting workflows
Financial controls and safeguards

They create infrastructure that supports growth.

Investor Relations

When you're raising capital, they:

Prepare financial materials
Answer investor questions
Build credibility through financial clarity
Negotiate terms from a position of knowledge

They speak the language investors understand.

When You Need One

You need a fractional CFO when:

You're making big financial decisions: Raising capital, making acquisitions, planning exits—these require CFO-level thinking.

Your financials are complex: Multiple revenue streams, complex cost structures, international operations—you need strategic financial guidance.

You're scaling quickly: Rapid growth creates financial complexity. A fractional CFO helps you navigate it.

You're preparing for a transaction: Whether it's fundraising, acquisition, or exit, you need financial sophistication.

You're outgrowing your bookkeeper: Your bookkeeper keeps accurate records, but you need strategic financial guidance.

What They're Not

Fractional CFOs aren't:

Bookkeepers: They don't categorize transactions or reconcile accounts.
Accountants: They don't prepare tax returns or handle compliance.
Controllers: They don't manage day-to-day accounting operations.

They're strategic partners, not operational staff.

Making It Work

A successful fractional CFO relationship requires:

Clear scope: Define what you need—strategic planning, analysis, investor relations, or all of the above.
Right fit: Find someone who understands your business model and your stage.
Regular cadence: Establish a consistent schedule—weekly, bi-weekly, or monthly.
Good communication: Share context, ask questions, stay engaged.

The Investment

Fractional CFOs typically cost $2,000-$8,000 per month, depending on scope and experience. That's a fraction of a full-time CFO salary ($150,000-$300,000+), but you get CFO-level expertise.

The ROI comes from better decisions, faster execution, and stronger financial positioning.

The Bottom Line

Fractional CFOs bring strategic financial expertise without the full-time cost. They're not for every business, but when you need one, they're invaluable.

If you're making big financial decisions, scaling quickly, or preparing for a transaction, a fractional CFO can be the difference between success and struggle.

Don't wait until you need one desperately. Bring one on when you're ready to level up your financial operations.