What’s a Fractional CFO?
A fractional CFO is a Chief Financial Officer hired on a part-time basis, providing businesses with high-level financial expertise without having to employ a full-time professional.
Fractional CFO services are becoming increasingly in demand among startups, scaleups, and even established organizations seeking the seniority and expertise of a full-time CFO, but for fewer hours and at a fraction of the cost. Fractional CFOs typically work for more than one employer and are paid on a monthly contractual basis.
I’m a fractional CFO with a knack for steering startups and scaleups like BinckBank and Brand New Day towards growth. I combine a hands-on approach with strategic insight, offering practical, real-world advice and support to founders, boards, and investors.
–Two-Time Unicorn & IPO Scale-up Fractional CFO on 10x
Hire a Fractional CFO for your organization
Who Needs a Fractional CFO?
A fractional CFO is ideal for organizations that need high-level financial expertise but may not be ready or have the budget to hire a full-time CFO. Hiring a fractional CFO can be a great choice for startups and small to mid-sized organizations, as well as businesses that are growing rapidly or undergoing restructuring and need a financial expert to help them scale their operations efficiently.
Our scale-up needed an experienced CFO to help with our funding round, manage our finance department and support international expansion. The 10x fractional CFO exceeded our expectations.
– Merel van Helsdingen (Founder & Managing Director of Next Musem)
What Are the Benefits of Hiring a Fractional CFO?
The flexibility of hiring a fractional CFO brings a range of cost and efficiency savings. Instead of paying for a full-time CFO working 40 hours a week, organizations can benefit from the same level of expertise on a part-time or project basis, making hires that align with their specific needs and budget. This arrangement is becoming increasingly appealing when hiring for senior roles like CFOs, as organizations can rely on their services as and when it’s needed, e.g. during an M&A, annual financial planning, or raising venture capital.
Hiring a fractional CFO instead of a full-time CFO is also beneficial if an organization needs immediate financial expertise. The hiring process is typically much less time-consuming, with many fractional workers available on demand and ready to be hired immediately. Seasoned fractional CFOs are also adaptable and typically come with years of experience in multiple industries and at different business stages, enabling them to quickly embed themselves into an organization and add value where it’s needed most.
Interested in hiring fractional talent in other areas of your business? Start searching for a range of roles including CMOs, CTOs, Project Managers, and more.
What Skills Should a Fractional CFO Have?
A fractional CFO combines senior leadership capabilities with proven expertise in a range of financial skills. Common fractional CFO services include:
- Creating and executing financial strategy
- Managing cash flow efficiently and optimizing liquidity
- Budgeting and forecasting for business growth
- Preparing and analyzing financial reports
- Ensuring financial compliance and regulatory adherence
- Assisting with fundraising, including investor relations and securing capital
- Overseeing mergers, acquisitions, or business restructuring
- Implementing and improving financial systems and processes
- Offering strategic guidance during key business transitions or growth phases
Ultimately, a fractional CFO should be capable of guiding organizations through complex financial situations and adapting to the specific needs and requirements of their employer.
What Are Average Fractional CFO Rates?
Fractional CFO rates typically vary between €150-400 per hour depending on expertise and the services required, although some may offer a fixed monthly retainer amount or per project. Compared to a full-time CFO or interim CFO, working with a fractional CFO provides organizations with a greater degree of flexibility in negotiating the exact hours and services provided, which makes it much more cost-efficient.
Is Hiring a Fractional CFO the Right Decision for My Organization?
More and more companies are opting for fractional CFO services as a flexible, cost-effective alternative to hiring a full-time or interim CFO. It’s a smart investment for organizations that are seeking financial leadership without the full-time commitment (and costs that come along with it). This is especially valuable for startups and scaleups, who are more likely to have limited budgets and need proven experience to help them grow and scale operations cost-effectively.
Whether it’s securing investor funding, navigating an M&A, or overcoming complex financial challenges, hiring a fractional CFO can be hugely beneficial in today’s economy.
Hiring a Fractional CFO For Your Organization: Find Top Talent with 10x
10x is a members-only platform giving organizations access to a strictly-vetted database of elite fractional CFOs and other fractional job roles. With a proven track record of connecting the top 1% of fractional talent with ambitious organizations across a range of industries, you can request access to the platform and we’ll work with you to find the perfect candidate.
FAQ
Can I Hire a Fractional CFO on an Hourly Basis?
Yes, many fractional CFOs offer their services on an hourly basis, making it a highly flexible option for organizations looking to get temporary support for specific projects or responsibilities in a cost-effective way.
How Can 10x Help Me Hire a Fractional CFO?
10x connects organizations of all shapes and sizes with the highest quality fractional CFO services on demand. As 10x is an invite-only platform, the first step is to request access. You will then be asked to answer a couple of questions to better assess your needs and goals. This input is vital in helping us to pair you with the most suitable 10x-er for your organization. Our experts thoroughly vet all 10x professionals before matching, making sure they have the right knowledge and experience to solve your challenges and add value from day one.
How Much Does a Fractional CFO Consultant Cost?
The costs of fractional CFO services can vary depending on the specific needs of your company, the duration of employment, and the fractional CFO’s level of experience. So the exact amount is calculated on a case-by-case basis. Request access to the 10x platform and we’ll work with you to find a solution that fits your specific needs.
What Are Some Tips for Hiring a Fractional CFO for My Business?
- Define your needs: Before you start searching for a suitable fractional CFO, think about the scope of work you need support with—whether it’s cash flow management, financial reporting, fundraising, strategic planning, or anything else. This gives you a clearer idea of what background and skillsets you’re seeking in a candidate, helping to ensure you hire a fractional CFO with the right expertise for the tasks at hand.
- Background check: While top fractional CFOs typically have a broad scope of knowledge and industry expertise, it’s important to find one who has a proven track record with organizations of your size and industry.
- Working arrangement: Consider the duration of employment and the expected working hours per week, as well as how much you’re willing to spend. These factors can vary widely, so having these details on paper will make it much easier to find a fractional CFO that fits your timeline and budget.
- Effective communication: Onboarding and maintaining effective communication with a fractional professional differs slightly from a full-time CFO, as they may not be in the office full-time. This may require companies to invest in project management and communication tools, as well as investing team resources into collaborating with the fractional CFO.
Would Startups Benefit from Hiring a Fractional CFO?
Hiring a fractional CFO can be a cost-effective option for startups, which are more likely to have limited budgets and face financial challenges surrounding cash flow management, securing investors, and scaling operations cost-efficiently. Startups are typical clients of 10x’s fractional work platform, typically needing executive financial support without wanting to commit to the long-term costs of a full-time CFO.
Startups are also more likely to be focused on growth, and that’s where they’re more likely to benefit from the strategic insights of a fractional CFO professional, helping startups to make informed decisions that set them up for sustainable, long-term success.
How Do I Find a Fractional CFO for My Business?
One of the most effective methods for hiring a top-quality fractional CFO is via dedicated fractional work platforms that have experience in connecting businesses with the right professionals. Leveraging these platforms gives you the best chance of hiring a candidate who has proven experience, aligned to your unique needs and goals.
10x’s invite-only platform has a highly-vetted database of 500+ fractional professionals on demand, including top fractional CFOs. Request access to the platform today to start the hiring process for your business.