Fractional CFO vs. Full-Time CFO
As your business grows, so does the complexity of your financial operations. At some point, strategic financial leadership becomes essential, but does that mean you need to hire a full-time Chief Financial Officer (CFO) or is a Fractional CFO a better fit?
Both options bring valuable expertise to the table, but the best choice depends on your company’s size, stage, and strategic needs. In this guide, we break down the differences, benefits, and key considerations to help you decide between a full-time and a Fractional CFO.
What Is a Full-Time CFO?
A full-time CFO is a senior executive dedicated solely to your business. They lead all aspects of the finance function, spanning from financial reporting and budgeting through risk management, investor relations, and M&A strategies. This role typically commands a high six-figure salary (~$250K+), a health benefits plan, a performance bonus plan, 4+ weeks of vacation equity, and typically a minimum payout of 6 -12 months of severance upon termination
A full-time CFO may be the right choice if:
You’re a large (at least > $100M in revenue), mature company with multiple divisions, international operations, and extensive compliance requirements
You need constant, in-house financial oversight across every department on a full-time basis
You can keep a top executive fully utilized every day, long-term
Your company has the scale and resources to support ongoing executive costs.
What Is a Fractional CFO?
A Fractional CFO is a highly experienced financial executive who works with your business on a part-time, contract, or project basis. They provide strategic financial leadership without the cost and commitment of a full-time hire.
Think of it as accessing top-tier CFO-level expertise at a fraction of the cost. Ideal for small to mid-sized businesses (SMBs) and growing companies that need senior, strategic, and dependable financial leadership but can’t yet justify a full-time CFO on payroll.
A fractional CFO might be the right fit for you if:
You are growing quickly and need strategic financial guidance to keep up
You are at an inflection point where better financial leadership could unlock growth, improve profitability, and cash flows
Your company needs better financial systems, or financial restructuring, but not 40+ hours of CFO time per week
You want flexibility, cost-efficiency, and on-demand senior-level support that scales with your business
A Hybrid Approach: Start Fractional, Grow into Full-Time
Many high-growth companies start with a Fractional CFO, then transition to a full-time hire when the company’s complexity and size increase to a full-time need. Our team can help you recruit and onboard your future full-time CFO, ensuring a smooth handoff. Ultimately, it’s not about which option is best; it’s about which one is better for your business right now.
Need Help Deciding?
Book a free consultation to explore which model best fits your business.