How to Hire a Fractional CFO

You’re ready for greater financial leadership in your business, but how do you hire a Fractional CFO? Hiring a fractional CFO (Chief Financial Officer) can be a game-changer for businesses with $5M to $20M in annual revenue. At this stage of growth, financial complexity increases, and strategic oversight becomes essential to drive profitability, manage risk, and scale efficiently. A fractional CFO offers high-level expertise without the cost of a full-time executive, making it a smart investment for growing, for-profit companies.

What Is a Fractional CFO?

A fractional CFO is a seasoned financial executive who works with your business on a part-time, contract, or project basis. They provide strategic financial leadership, help with forecasting, optimize cash flow, prepare for fundraising or acquisitions, and ensure financial controls are strong. This allows business owners and CEOs to focus on growth while knowing the financial side is in expert hands.

Why Hire a Fractional CFO?

For companies generating between $5M and $20M in revenue, hiring a full-time CFO may not be financially practical or necessary. A fractional CFO provides:

• Strategic Financial Planning: Align financial strategy with business goals.
• Cash Flow Management: Monitor and optimize inflows and outflows.
• Budgeting and Forecasting: Build accurate models to guide decisions.
• KPI Tracking: Identify and track metrics that matter most.
• Financial Reporting: Improve accuracy and timeliness of statements.
• Risk Management: Anticipate and mitigate financial risks.
• Capital Planning: Support with fundraising, bank financing, or M&A preparation.

Steps to Hire a Fractional CFO

1. Define Your Financial Needs. Start by assessing your current financial challenges and goals. Are you struggling with cash flow visibility? Need help building a forecast? Planning a capital raise? Clarifying your needs ensures you find a CFO with the right expertise.
   
2. Set Your Budget. Fractional CFOs typically charge by the hour, day, or project. Costs can range from $150 to $400+ per hour, depending on experience and market. Define a realistic budget based on your company’s complexity and the value you expect.
   
3. Choose the Right Engagement Model. Decide how often you’ll need your CFO:
   • Part-Time Weekly: Ongoing support for businesses needing consistent guidance.
     
   • Project-Based: For system implementations, audits, or transaction support.
     
   • Interim Full-Time: During leadership transitions or high-growth periods.
     
4. Look for Industry Experience. While financial fundamentals are universal, industry-specific knowledge can accelerate results. For example, SaaS, healthcare, or manufacturing firms benefit from CFOs familiar with their financial nuances.
   
5. Evaluate Credentials and Communication Style. A strong fractional CFO should bring more than numbers. Look for:
   
   • Proven track record in similar businesses.
     
   • Strong communication and leadership skills.
     
   • Experience with financial systems and tools.
     
   • Ability to collaborate with CEOs, controllers, and external advisors.
     
6. Use a Trusted Provider or Network. Partnering with a firm that specializes in fractional CFO services ensures a vetted, reliable expert. These firms often offer flexibility, backup support, and additional financial resources like controllers or accountants.

Your Next Steps

Hiring a fractional CFO is not just about filling a role; it’s about gaining a strategic partner who can drive your company forward. For for-profit businesses in the $5M to $20M range, the right CFO can improve financial visibility, unlock new growth opportunities, and strengthen your financial foundation.

If you’re ready to take control of your business finances and plan for sustainable growth, hiring a fractional CFO is a wise next step. Work with a trusted partner who understands your industry, aligns with your goals, and brings the clarity you need to lead with confidence.

Schedule a consultation todayto determine if a fractional CFO is the right move for your business. The right financial leadership can make all the difference in driving long-term success in your company.