How Much will a Fractional CFO cost in 2024?

2024 Fractional CFO Hourly Rate and Cost Insights


It’s no secret that keeping track of finances is a hectic full-time job. However, hiring a C-suite executive, such as a CFO, could cost astronomical with all the remuneration and equity compensation. At the same time, having an officer with financial acumen is important to look after the company's finances. Here's where a fractional CFO comes into the picture. A fractional CFO works part-time and at a lower cost to accomplish the same tasks as a full-time CFO.  In exchange for the cost of a seasoned expert's time, you get a strategic partner that safeguards your investments, identifies areas for efficiency gains, and looks into potential growth opportunities.

What is a ‘Fractional CFO’?

A fractional CFO is a trained financial expert who works part-time or on a project basis to offer small and medium-sized companies high-level financial and strategic guidance. A fractional CFO is an excellent option for expanding businesses that require the strategy, planning, and industry knowledge of a CFO but still require a full-time need.

Hiring a fractional CFO is common when a business is expanding quickly or going through a big transition, such as a merger or acquisition. They can also be helpful when a business is trying to increase profits or raise funds. Fractional CFOs frequently assist companies that need more internal resources to hire a full-time financial executive. Fractional CFOs can contribute significant insights without incurring the additional expense of a full-time CFO by bringing in outside knowledge on a demand basis.

Instead of being viewed as an expense, a fractional CFO should be considered an investment. Your partnership with a fractional CFO ought to yield a quantifiable return on investment. In the event that you don't, then simply you must have gone wrong with the choice of CFO.

Financial advisors who provide short-term or hourly consultations without being involved in implementation are different from fractional or outsourced CFOs. In addition to providing high-level financial planning, a fractional CFO also assists with strategy implementation, system optimisation, employee training, fostering strategic alliances and connections, and more, emphasising long-term success.

Perks Of Hiring A Fractional CFO?

Hiring a fractional CFO has many incredible advantages, which is why hiring one has grown so much in popularity among companies in recent years. Among the potential most significant advantages are the following:

  • Deliver excellent work at a fraction of the full-time CFO's expense.
  • You benefit from a wide range of company experience, knowledge, and connections to support your enterprise.
  • Their extensive network of lawyers, bankers, business brokers, tax CPAs, and insurance experts can be helpful when assembling your company's finance team.
  • A part-time CFO might offer your company ongoing financial support or specialised knowledge for particular tasks.
  • If the CFO is not providing the valuable knowledge you were hoping for, you can terminate the contract at any moment. 
  • Fractional CFOs provide services and capabilities like Budgets, financial projections, scenario modelling, unit economics, formulating strategies, customer contract reviews, etc. If you require any assistance with your 1120 tax return, you can reach out to us. 

How Much Does A Fractional CFO Cost, Including Fractional CFO Hourly Rate And More?

Based on the client's size, complexity of financials, system design and implementation, number of entities, and service level, fractional CFO cost is determined. Nonetheless, interim CFO rates primarily fall into two categories: Fractional CFO hourly rate and overall periodic cost.

Hourly Rate - Part-time CFOs often bill by the hour, and the total price you pay each month is determined by how many hours your CFO works. You should budget between $175 and $350 per hour for a CFO who has experience in the vertical of your company's operations. 

Flat Monthly Rate: Conversely, certain fractional CFO services have a set monthly cost for a predetermined amount of work or hours per month. Compared to paying an open-ended hourly rate, this can result in significant savings and make budgeting for the expense of a part-time CFO easier.

Sometimes, predicting the cost of the CFO's services for a month can be challenging if you decide to pay them hourly for part-time work. Your monthly price will be more, for instance, if the CFO must put in more time organising your books or closing outstanding months before they can begin crunching figures. 

Furthermore, recruiting a full-time CFO can be very costly; the average yearly salary for one is more than $350,000. As a result, several businesses with limited funding choose to avoid hiring a CFO when they need one. CEOs or business owners frequently assume this role when a company starts, but this is a short-term option. Fractional CFO expenses typically fall between $3,000 to $12,000 per month. For most small- to mid-sized businesses, the most common agreements are from $5,000 to $7,500 monthly.

A fractional CFO often puts in 20 hours a week at work; the fractional CFO's hourly rate will scale accordingly. However, this might vary based on the company's particular demands. The services rendered affect the cost of a CFO as well.


Your most extensive financial problems can be affordably resolved with the assistance of a fractional CFO. Working with a fractional CFO can offer forward-looking strategic financial leadership to a business without a CFO with revenue between $5 and $200 million. Revenue and profit growth can be severely impeded when businesses simply look at accounting reports that look backwards each month. 

Some companies request that their temp CFO handle bookkeeping and accounting duties; moreover, this could be a better use of their valuable time and your company's money. Ensure you have the proper ongoing accounting software, like Inkle Books, to support and manage your fundamental financial recordkeeping and accounting activities at a more reasonable cost to avoid paying more than necessary. 

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