Comparison · Finance

Fractional CFO vs. full-time CFO.

Most startups need CFO-level judgement long before they need a full-time CFO. A fractional CFO gives you that judgement for the moments that call for it, such as a raise, board reporting or a major decision, at a fraction of the cost. Hire a full-time CFO when finance decisions are constant, the team needs daily leadership, or you are preparing for a late-stage raise or exit.

By Drew Glover, Co-Founder, FGV

What does a fractional CFO do?

A fractional CFO works with you part-time on the decisions that shape the company: the financial model, fundraise preparation, board and investor reporting, and scenario planning before a big hire or a new market. Day-to-day bookkeeping and accounting usually sit underneath, with a separate team or service.

When is a fractional CFO the right choice?

When the need is real but not yet full-time, for example:

  • Preparing for a seed, Series A or Series B raise
  • Setting up board and investor reporting for the first time
  • Modeling a major decision: pricing, a new market, a large hire
  • Cleaning up the numbers before diligence

When should you hire a full-time CFO?

When finance needs leadership every day: a growing finance team to manage, complex banking or lending relationships, regulatory reporting, or a late-stage raise, acquisition or IPO on the horizon. At that point the cost of a full-time executive is justified by the volume of decisions.

How do the costs compare?

A full-time CFO carries an executive salary, equity and a long search. A fractional CFO is paid for the time you use, can start quickly, and brings patterns from many companies rather than one. The trade-off is availability: a fractional CFO is not in every meeting.

Can a fractional CFO help you hire the full-time one?

Yes. A good fractional CFO knows when you have outgrown the arrangement and can help define the role. At FGV, Finance and Talent work together, so the CFO search starts from a clear picture of what the role needs to own.

Questions

Do investors expect a full-time CFO at Series A?

Usually not. Investors expect reliable numbers, a credible model and clean reporting; many Series A companies get there with a fractional CFO and a strong accounting function.