When Should You Hire a Fractional CFO?

Hire a fractional CFO when you face decisions the bookkeeping cannot answer, such as pricing, hiring, borrowing, forecasting cash or preparing for a sale, and your books are reliable enough to plan from. If your records are behind or your finances are simple, start with bookkeeping instead.

By Jake McKenna, FounderPublished Last reviewed

When do you need a fractional CFO?

There is no single revenue figure or headcount that makes the answer yes. Revenue alone says little, because a business with modest revenue and thin margins can need planning more than a bigger, steadier one. The better test is the kind of question you are asking. If the question is "what happened last month?", you need bookkeeping. If it is "what should we do next, and can we afford it?", you are in CFO territory.

What are the signs it is time?

Read through these. Several yeses is a signal; one is not.

  • You decide prices by feel. You do not know the margin on each product, service or customer.
  • Cash surprises you. Profit looks fine on paper, yet the bank balance is tight. Our guide on profit vs cash flow explains how that happens.
  • A lender, investor or buyer wants numbers you do not have. That might be a forecast, a budget or monthly reporting packs.
  • You are planning a hire, a second location or a big purchase. You want to test the plan before you commit.
  • Nobody reviews the books. Entries get made, but no one checks whether they make sense, or turns them into management reports.
  • You are thinking about selling or buying. Preparation takes time and starts well before the conversation with a buyer.
  • Your partners or board ask for reporting you cannot produce.
  • You spend your own evenings in the spreadsheet and still do not trust the answer.

What are the signs you do not need one yet?

Signs you may not need one yet:

  • Your books are months behind. Fix the records first. Catch-up bookkeeping gets you to a reliable starting point.
  • Your finances are simple and steady. If there are no decisions on the horizon, monthly bookkeeping with a tax professional may be enough.
  • You have no one to act on the advice. A plan needs an owner. If nobody will use the reports, the cost buys nothing.
  • You want tax preparation, an audit or investment advice. We do not do those, and a CFO is not the right fit for them. This is general information, not tax or investment advice.
  • You need someone on site every day. A fractional arrangement runs on a schedule, not an office desk.

Should I hire a controller first?

Sometimes. A fractional controller makes sure the month closes properly, the records are checked and the controls are in place. A CFO builds on that. Some businesses need both over time, and some need only the controller for a long while. Read controller vs CFO for the full difference.

Fractional CFO or full-time CFO?

A full-time CFO makes sense when the finance workload fills a full week and the company needs an executive in the building. Many growing businesses are not there yet. The fractional CFO vs full-time CFO page compares the two, including where a salaried hire wins.

What should be in place before you start?

A short list makes the first months far more useful.

  1. Books up to date and reconciled in your accounting software.
  2. A clear list of the decisions coming in the next year.
  3. The person who will act on the advice, in the room.
  4. Access to your tax professional, so the work lines up.
  5. An honest view of how much you want to spend each month. The pricing page explains how our fees are set.

Is it better to hire early or late?

Earlier is not automatically better. Hiring before the books are clean means paying for planning on weak numbers. Hiring after a crisis means making decisions under pressure, with fewer options. A sensible middle is to bring in finance leadership when you can name a coming decision, such as a loan application, a pricing change or a hire, and when you have reliable, up-to-date records behind you.

If you are unsure which side of that line you are on, ask someone to look at your last few months of reports. A review of your last few months of reports will show whether the first step is planning or cleanup. For a longer view of how the roles fit together, see our pricing page and the what we do overview.

Is there a free first step?

We offer a free introductory consultation. Details of the service are on the fractional CFO page, and the background is in 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.

Common questions

What size company needs a CFO?

There is no standard size. The need depends on the decisions in front of you, such as pricing, funding, hiring or a sale, and not on a headcount or revenue line.

When should a startup hire a fractional CFO?

When it needs a forecast, a budget or investor reporting and no one on the team can produce them. Before that point, clean bookkeeping is usually the better first step.

Do I need a fractional CFO if I already have an accountant?

Possibly not. Some accountants handle tax and compliance, which is a different job. A CFO plans and advises on the future of the business. We work alongside your CPA or tax professional so the two jobs fit together.

Can I hire a fractional CFO for a short period?

Some providers offer project work, and some prefer ongoing monthly arrangements. Ask any provider how the arrangement can end, and about minimum terms, before you sign.

Talk it through with us

Schedule a free introductory consultation. No surprise bills. No unnecessary services.

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