Is a fractional CFO worth it for a business under $5M?

Usually yes if you've crossed $1M and you're financing growth, watching cash tighten, or weighing a big move like a raise or a sale. Under roughly $1M with clean books, a bookkeeper plus your CPA is more cost-effective.

How is this different for an owner-operated business versus a startup?

Startup CFO work is about managing burn toward the next funding round. Owner-operated work is about sustainable cash, dependable owner distributions, and building a business that could survive a sale or handoff. Different goals, different job.

How fast will I see results?

Plan on 60 to 90 days. Month one is diagnosis and cleanup: catching up the books and building the first forecast. Measurable cash improvement typically lands in months three through six.

Will it work with my existing bookkeeper and CPA?

Yes. The fractional CFO coordinates the bookkeeper's day-to-day work and refers all tax, attest, and compliance work back to your CPA. You keep your accountant. There's nothing to switch.

What does a fractional CFO cost for a business my size?

Engagements for $1M–$10M businesses generally run $2,000–$8,000 a month, driven by scope and how much book cleanup is needed up front. That compares to $180,000–$300,000 all-in for a full-time CFO.

What's the biggest risk in hiring one?

Vague scope. "Help with our finances" leaves you no way to measure the work. Insist on named outputs (a cash forecast, a collections plan, margin by job or service line) so you can tell whether you're getting your money's worth.

Advisory

Fractional CFO for Owner-Operated Businesses ($1M–$10M)

For most owner-operated businesses doing $1M–$10M, a fractional CFO is worth it, provided the scope is real. Here's the direct answer, the trade-offs, and what six months actually looks like.

Read on Walden →