For companies looking for top-level financial leadership without the need to hire a full-time executive, a fractional CFO is the perfect fit.
The fractional model enables you to hire an experienced financial strategist on a part-time contract. This expert can guide your strategy, find savings, and fuel growth, all for a fraction of a full‑time executive salary. Learn how hiring a fractional CFO works and what they can do for your company.
The Role of a Fractional CFO
Unlike a traditional CFO who dedicates every workday to one company, a fractional CFO splits their time among several clients.
Each of these clients can tap into the CFO’s high‑level financial leadership without paying a full‑time salary. Instead, they pay only for the time they actually need. For example, you might bring your CFO in for a key project, a short‑term challenge, or a weekly strategy session.
Typically, a fractional CFO lends their services on a set schedule; you might agree to partner with them for a few days each month or a handful of hours each week. During this time, they contribute their deep experience in planning, forecasting, and growth strategies in your industry.
How a Fractional CFO Can Help Your Company
Even on a part‑time schedule, fractional CFOs bring senior‑level know‑how and the skills to drive real results.
Like a traditional CFO, a fractional CFO shapes your financial direction. If you pick the wrong fit, you could miss critical opportunities. To get the most out of this hire, try to identify the financial gaps in your startup. This might be cash flow, cost control, or strategic forecasting. When your objectives are specific, you’ll know exactly what to look for during interviews.
Once you’ve set those priorities, a fractional CFO can help you:
- Assess funding options, from bank loans to investor capital
- Maintain accurate, compliant financial reporting
- Keep cash flowing and safeguard liquidity
- Uncover cost‑saving opportunities and boost margins
- Develop budgets and long‑term financial plans
- Build financial controls and governance structures
- Advise marketing, product, and other teams on the financial implications of initiatives
- Provide board‑ready analysis to support key decisions
You might ask your fractional CFO to tackle several financial areas at once. That requires setting clear priorities with a schedule that fits your needs. As your financial strategist focuses on these priorities, you can make real progress.
Fractional engagement also carries less risk than a full-time hire. While your fractional CFO works to solve today’s challenges, you’ll identify the exact skills to look for when it’s time to bring on a full-time CFO.
When to Consider Hiring a Fractional CFO
Most companies don’t need a full‑time CFO until revenue reaches a substantial threshold. In the early phases, you and your core team can address budgeting, reporting, and cash-flow tasks. A fractional CFO at that stage can provide you with senior-level guidance on the same tasks without the cost of a full hire.
If you’re undergoing rapid expansion, it’s difficult to forecast revenue and control expenses. In that stage, a part‑time financial leader can help you steer growth without breaking your budget.
These scenarios may also warrant hiring a fractional CFO:
- Gearing Up for an Investment Round, Merger, or Buyout: A fractional CFO can help you with valuations, forecasts, and due diligence
- Facing Unpredictable Cash Flow: Your CFO can find leaks and set up fixes that steady the ship
- Struggling With Inadequate Accounting Tools and Reports: Your CFO can build a more robust financial framework
A fractional CFO can help you scale smartly, giving you expert support and a clear view of what you might need when you are ready for a permanent CFO.
Drive Your Growth With Expert Financial Help
You deserve to grow your business on your own terms. At Zabel & Co., we give you hands‑on guidance so you can accomplish your goals.
With over 30 years of experience, we work alongside you, offering clear action plans, regular check‑ins, and honest feedback. We help your company scale sustainably, making sure that you have time for what matters most in your life. Contact us today.