Do I need to fire my bookkeeper to hire a fractional CFO?

No. The two roles are complementary. A fractional CFO usually manages or coordinates the bookkeeper rather than replacing them, and pushes routine data entry down to bookkeeping or automation so their own hours go to forecasting and decisions.

What's cheaper, a bookkeeper or a fractional CFO?

A bookkeeper, by a wide margin. Bookkeeping typically runs $400–$2,000 a month because it's a narrower job. A fractional CFO usually runs $2,000–$8,000 a month depending on scope. These ranges are illustrative and vary by industry and complexity.

My bookkeeper can't answer my questions. Is that normal?

Yes. Cash flow, margins, and whether you can afford a hire are forward-looking questions, and answering them is CFO work. Clean books are the input; deciding what to do with them is a different role.

When do I actually need a fractional CFO instead of just a bookkeeper?

A useful trigger: revenue over $1M and more than about 10 hours a month spent decoding cash flow, margins, or affordability questions yourself. Below that, a bookkeeper plus your CPA is usually enough.

Does a fractional CFO or bookkeeper do my taxes?

No. Neither role does tax, attest, or compliance work. That stays with your CPA. A fractional CFO actually makes your accountant's job easier by keeping the books and the story behind them decision-ready year-round.

Can one person be both my bookkeeper and my fractional CFO?

In practice you want the work connected rather than combined. The most cost-effective setup is a CFO overseeing bookkeeping that's handled by a dedicated bookkeeper or automation, so you're not paying CFO rates for data entry. An integrated provider keeps both under one team so their data and assumptions line up.

Advisory

Fractional CFO vs. Bookkeeper: What Each One Actually Does

A bookkeeper records what already happened. A fractional CFO decides what to do about it. Here's how the roles split, what each costs, and when you've outgrown bookkeeping alone.

Read on Walden →