How to Hire a Fractional CFO
To hire a fractional CFO, first write down the decisions you need help with and make sure your books are reliable. Then ask each provider the same questions about scope, who does the work, reporting, fees and ending the arrangement, and compare answers in writing.
How do you hire a fractional CFO step by step?
- Define the job. Write down the three or four decisions you want help with in the next year.
- Check your records. If the books are behind, fix that first. See catch-up bookkeeping.
- Set a budget range. Our cost guide has cited market figures.
- Talk to two or three providers. Ask them all the same questions (below).
- Get scope and fees in writing.
- Check what you will receive in the first months.
- Agree how you will judge whether it is working.
What should you define before you call anyone?
Providers can only answer well if you give them something specific. Prepare:
- The decisions you face, such as pricing, a loan, a hire or a sale.
- The accounting software you use. We support QuickBooks and Xero.
- Who your tax professional is.
- Who inside your business will act on the advice.
- Your rough monthly budget.
Be cautious of providers who do not ask about any of this.
What questions should you ask any fractional CFO?
Use these with any provider, including us.
Scope
- What exactly is included each month? Ask for a list. Our CFO scope is forecasting and scenario planning, strategic financial planning, budgets, KPI development, pricing and profitability advice, funding readiness, exit or acquisition preparation, and board and investor reporting.
- What is excluded? We do not prepare tax returns, audit or give investment advice.
- Do you do the bookkeeping, or will I need someone else? See the difference in what a fractional CFO does.
People and background
- Who will do the work, and who will I talk to? Ask who will do the work and how you will reach them.
- What professional background does that person have, and can I check it? Ask for specifics you can verify with the issuing body.
- What is the relevant experience with a business like mine? Ask for the kind of work done, not a list of logos.
- Can I speak to a reference? A provider may refuse because of client confidentiality. That is fair, but ask what they can offer instead.
Rhythm and reporting
- How often will we meet, and what will I receive? Ours runs on a monthly reporting cycle.
- How quickly do you answer questions between meetings? Get the answer in writing rather than relying on a verbal answer.
- Which systems will you use and who owns the files? Make sure your data stays yours.
Fees and terms
- How are fees set? Ours are custom and one fixed monthly fee, covering all the work required, with no surprise bills. See pricing.
- What triggers extra charges? Ask about special projects such as a funding application or a sale.
- How can the arrangement end, and is there a minimum term? You want to know how to leave before you sign.
- What happens to my files and access when we stop?
Working with others
- How will you work with my CPA or tax professional? We work alongside them.
- How will you work with my bookkeeper or controller? See controller vs CFO if you are unsure which you need.
What are the red flags?
- A fixed answer before they have asked about your business.
- No written scope, or a scope that changes the moment you ask a question.
- A claim that they can deliver a specific financial result. Nobody can ensure that, so be wary of anyone who says they can.
- Unclear answers on who does the work.
- Background claims you cannot check.
- Pressure to sign quickly.
- Tax return preparation or investment advice bundled in without a clear explanation of who is responsible.
When should you not hire one?
If your records are unreliable, fix those first. If you have no upcoming decisions, a CFO may not earn their fee. If you need an employee in the building every day, consider a full-time hire. Our guides on whether a fractional CFO is worth it and fractional CFO vs full-time CFO cover both.
How do you compare two offers?
Put the answers in a table.
| Item | Provider A | Provider B |
|---|---|---|
| Monthly fee and what it covers | ||
| Who does the work | ||
| Meeting and reporting rhythm | ||
| Extra charges | ||
| Terms for ending the arrangement | ||
| How tax professional and bookkeeper are handled |
Pick the clearer one, not necessarily the cheaper one. A low fee with a narrow scope can cost more than a higher fee that includes what you need.
This is general information, not tax or investment advice. For the full service description, see our fractional CFO page, and for an overview of the whole firm, what we do. Background reading: what is a fractional CFO.
What English Oak Financial charges
English Oak Financial starts its fractional CFO service from $2,500 a month. Pricing is custom to your business and charged as one fixed monthly fee that includes all the work required.
Need this done for you? See our Fractional CFO & Advisory service, or pricing. English Oak Financial does not prepare tax returns, perform audits or give investment advice. This guide is general information, not tax, legal or investment advice.
Related pages
Common questions
How do I hire a CFO for a small business?
Define the decisions you need help with, make sure your books are reliable, then ask two or three providers the same questions on scope, people, reporting, fees and exit terms. Compare the answers in writing.
How do I hire a good fractional CFO?
Look for a clear written scope, a clear account of who does the work, background claims you can verify, and an honest account of what is not included. Avoid anyone who claims they can deliver a set result.
How do I hire a fractional CFO for a startup?
Start with the same steps, and add whether the provider can prepare investor reporting and funding readiness work. Make sure the bookkeeping is in order first.
What should a fractional CFO contract include?
At minimum: the services included, the fee, the reporting schedule, who does the work, how special projects are priced, data ownership, and how either side ends the arrangement. Have a lawyer review any contract before you sign.
Talk it through with us
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