Is a fractional CFO really equivalent to a full-time one?

For the strategic work (forecasting, cash flow, margins, financing), yes. The difference is hours and dedication, not capability. Most owner-operated businesses only have five to fifteen hours a month of that senior work to give, which is exactly why the full-time seat is overkill.

How much do you actually save versus a full-time hire?

A full-time CFO runs $180,000 to $300,000 once you include salary, bonus, benefits, and equity. A fractional setup buys the senior judgment by the decision rather than the hour, so you typically pay a fraction of that. The saving comes from pricing each layer of work correctly instead of paying CFO rates for bookkeeping.

What work stays in-house if I go fractional?

Daily operational cash decisions stay with you, informed by the forecast the CFO builds. Tax, audit, attest, and compliance work stays with your CPA. And the production work (clean books, invoicing, reconciliations) still has to get done by a bookkeeper and controller, whether that's your team or the CFO's.

Does a fractional CFO replace my bookkeeper and CPA?

No. A fractional CFO sits on top of the bookkeeping rather than in place of it, because the forecast is only as good as the books underneath it. And it never replaces your CPA; a good fractional CFO hands clean, closed books to your accountant and refers all tax and compliance work back to them.

What's the difference between interim, part-time, and fractional?

Interim is a temporary full-time backfill, usually during a transition. Part-time is fewer hours for a single company. Fractional is ongoing senior work delivered on a retainer, often shared across a few companies, priced for the decisions rather than a seat.

How do I know the fractional arrangement is actually working?

Hold it to numbers: forecast accuracy within about 10% of actuals, days sales outstanding trending down, books closed within five business days, cash visibility of at least 13 weeks, and your own hours on financial admin falling. If those move, you've replaced the function.

Advisory

How to Replace a Full-Time CFO Without the Salary

A full-time CFO runs $180K to $300K all in, yet most owner-operated businesses don't have 40 hours of CFO work to give. Here's how to buy the judgment without the salary.

Read on Walden →