Fractional CFO vs. Full-Time CFO: When Each Makes Sense

The choice between a fractional and full-time CFO is strategic. Understanding when each model makes sense helps organizations optimize their financial leadership investment.

When a Fractional CFO Makes Sense

Revenue Stage: Typically $1M-$20M annual revenue

Characteristics: - Strategic finance needs without full-time complexity - Predictable business model requiring periodic oversight - Preparing for specific events (funding, sale) - Cost constraints but need for expertise

Benefits: - Access to senior expertise at fraction of cost - Flexibility to scale engagement - Diverse experience from multiple clients - Objective external perspective

When a Full-Time CFO Makes Sense

Revenue Stage: Generally $20M+ with complexity

Characteristics: - Complex financial operations requiring daily attention - Multiple business units or geographies - Significant M&A activity - Public company or complex reporting requirements - Large finance team requiring leadership

Benefits: - Dedicated focus on single organization - Deep institutional knowledge - Available for immediate issues - Cultural integration

The Hybrid Approach

Some organizations use fractional CFOs alongside internal finance managers—getting strategic oversight while building internal capability.

Making the Decision

Consider: - Current and projected revenue - Business complexity - Strategic initiatives timeline - Budget constraints - Internal finance capability

The right answer is the one that delivers strategic financial leadership your organization needs at an investment level it can sustain.