CFO: Full-Time vs. Fractional
Deciding between a full-time CFO and fractional CFO services is a critical strategic decision that impacts your financial operations, investor relations, and ability to scale. This guide helps you understand when each approach makes sense for your organization.
When to Hire a Full-Time CFO vs. Fractional CFO
Consider a Full-Time CFO When:
- You have $35M-$75M+ in annual revenue with multiple revenue streams, complex accounting, or require daily financial oversight
- You're preparing for IPO within 12-18 months or are already public, requiring dedicated SEC compliance and investor relations
- You have 200+ employees with multiple business units, geographies, or complex financial structures
- You're in constant fundraising mode (late Series B/Series C+) and need dedicated investor relations and financial strategy
- Your financial complexity demands daily oversight: multiple entities, international operations, complex revenue recognition, inventory management, M&A activity
- Finance is core to your business strategy and requires deep organizational integration
- Your annual outside financial consulting spend exceeds $250K-$300K (approaching cost of full-time hire)
Consider a Fractional CFO When:
- You're in startup to scale-up phase ($1M-$50M revenue, 10-300 employees) with periodic but not constant financial leadership needs
- You've raised seed through Series B funding and need sophisticated financial planning but don't require daily CFO presence
- Your financial requirements fluctuate by quarter, fundraising cycle, or business stage
- You need senior-level financial expertise but your budget is $60K-$240K annually vs. $350K-$600K+ for full-time (including equity/bonuses)
- You have a strong controller or finance manager handling day-to-day operations and just need strategic oversight
- You're building toward a full-time CFO role but need immediate financial infrastructure and board reporting
- You need to balance financial leadership with other critical investments
- You're preparing for fundraising rounds and need financial modeling, due diligence prep, and investor-ready reporting
- You want to preserve equity for other key hires and avoid diluting ownership
- You need expertise in specific areas (fundraising, M&A, financial modeling, unit economics, SaaS metrics) without full-time commitment
- Your business model is relatively straightforward (single/few revenue streams, domestic operations, standard SaaS or service business)
- You need 20-80 hours monthly of CFO-level strategic work vs. full-time dedication
Related Resources
The Bottom Line
For most growth-stage companies, a fractional CFO provides strategic financial leadership, expertise, and flexibility at a fraction of the cost. You get access to experienced financial executives without the overhead, hiring risks, equity dilution, and fixed costs of a full-time hire.
As your company matures and financial needs become more constant and complex (approaching IPO, public company, complex operations), you can transition to a full-time CFO. Many companies use fractional CFOs as a bridge, building their financial capabilities while they scale to the point where full-time leadership makes sense.