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Fractional CFO
Posted on 1/12/26 at 10:36 am
Posted on 1/12/26 at 10:36 am
Anyone been a part of a company that hired a part time CFO? Was it beneficial? Did they add value? What would you have done differently?
9
Posted on 1/12/26 at 10:38 am to Rex Feral
Really depends on the situation. I've seen it done quite a bit. For companies where the CFO is a glorified accountant it's not as big of a deal but if you get a turd in there who doesn't do much work and is just trying to sign off on P&Ls there won't be much value. For companies that do real financing activities i've seen it be disastrous.
This post was edited on 1/12/26 at 11:04 am
Posted on 1/12/26 at 10:40 am to billjamin
quote:
For companies that do real financing activities i've seen it be disastrous.
Can you elaborete?
Posted on 1/12/26 at 10:45 am to Rex Feral
quote:
Can you elaborete?
If the CFO is expected to raise capital or manage complex capital structures like joint ventures, warehouses, special performance vehicles, etc. then you really need someone full time in the role. A line of credit with a banking partner wouldn't be a big deal, but if you're playing with any institutional money you need a dedicated pro in that chair. With the exception being if there's a PE or VC firm involved they'll usually handle all that and put someone cheaper in the CFO role because they're basically just a yes man for the firm at that point.
Posted on 1/12/26 at 10:47 am to Rex Feral
This is a growing marketing ploy in my line of work. The majority of CPAs who are offering CFO services are basically acting as in house accountants with limited input on the daily functions of the business. If youre lucky you might get a monthly chat gpt analysis of your financials.
Posted on 1/12/26 at 10:57 am to SippyCup
quote:
This is a growing marketing ploy in my line of work. The majority of CPAs who are offering CFO services are basically acting as in house accountants with limited input on the daily functions of the business. If youre lucky you might get a monthly chat gpt analysis of your financials.
I echo this sentiment - the industry determined that the expression Fractional CFO sounds a lot better than 2nd accountants but generally is the same thing.
It really comes down to what your needs are
Posted on 1/12/26 at 10:57 am to Rex Feral
There is a legal marketing company that pushes this HARD.
They try to sell you on if you don't do this and spend a min of $10k/month on advertising, you want your family to be poor.
I never really got past that so I didn't look into it further, but, imagine this, THEY offer a fractional CFO service for lawyers. What a coincidence.
They try to sell you on if you don't do this and spend a min of $10k/month on advertising, you want your family to be poor.
I never really got past that so I didn't look into it further, but, imagine this, THEY offer a fractional CFO service for lawyers. What a coincidence.
This post was edited on 1/12/26 at 11:00 am
Posted on 1/12/26 at 11:00 am to SippyCup
quote:
This is a growing marketing ploy in my line of work.
It's not just your line of work.
I'm seeing more and more "fractional CISO" bullshite. Nine times out of ten they tout their GRC and Audit creds as reasons why to hire them.
If your CISO is solely focused on risk and compliance, you are fricked. But not before your fractional CISO has moved on to other jobs, laughing all the way to their bank account.
This post was edited on 1/12/26 at 11:03 am
Posted on 1/12/26 at 11:07 am to Rex Feral
I offer fractional services but not in the financial space.
It allows people to hire a senior leader on a project basis or on a consistent part time basis with a small retainer.
As someone mentioned, depends what you need.
Do you need someone to help you hire, fundraise, and ensure you don't make a catastrophic mistake as the founder/CEO? Then it works and is 1/5th the cost.
Do you need someone to run day-to-day so you can sell? Hire someone FT.
It allows people to hire a senior leader on a project basis or on a consistent part time basis with a small retainer.
As someone mentioned, depends what you need.
Do you need someone to help you hire, fundraise, and ensure you don't make a catastrophic mistake as the founder/CEO? Then it works and is 1/5th the cost.
Do you need someone to run day-to-day so you can sell? Hire someone FT.
This post was edited on 1/12/26 at 11:09 am
Posted on 1/12/26 at 11:11 am to Rex Feral
There are retired CFO’s you could hire for a special project or need. If you cannot afford a full time one, go that route or hire a CPA.
Posted on 1/12/26 at 11:15 am to Rex Feral
quote:
Anyone been a part of a company that hired a part time CFO? Was it beneficial? Did they add value? What would you have done differently?
we have a fractional CRO. There's some value and I think he's set up some good processes for us to adhere to as we grow. Good guy and I think he brings value.
That being said, our CEO is a glorified salesman who started the company he needs help. I'm fine with the temporary hire, but if he's still here in a year, we all did something wrong.
That's not to knock him, he built a very successful small business, but he's just not a CEO.
This post was edited on 1/12/26 at 11:16 am
Posted on 1/12/26 at 11:54 am to Rex Feral
I do this line of work. We find it is really helpful for companies that can, or have hired someone at $150k+ a year as their accounting lead but struggle to see value, and basically have them as a very expensive admin that they have to deal with employee problems of a FT employee (sick kids, vacations, etc). Especially when that person is in charge of all accounting, they may struggle with higher level analysis. This problem gets worse the more qualified/compensated that individual is, because they are still just one person.
Having someone in that role FT is just not always a great fit. Often they just need a bookkeeper with some level of oversight. Companies in the $2M-10M range that have ownership in management often have limited resources but still need to talk about sensitive things with another manager is an ideal fit for fractional. With a fractional CFO, you get expertise for the things you need, but don’t need to wonder what I’m doing with my time when I’m not there, because you aren’t paying for it.
Other reason we may come in is for process improvements, tech stack recommendations or system implementation. If a company is good on accounting but needs someone with experience in these areas, having someone that sees how more companies do it is helpful.
Not all fractional CFOs are created equal. But if you can find the right fit it can be very beneficial, at least it has in my experience. My setup provides bookkeeping as well, but I’ve learned that I can basically only offer this with 3 clients max so I don’t do marketing.
Having someone in that role FT is just not always a great fit. Often they just need a bookkeeper with some level of oversight. Companies in the $2M-10M range that have ownership in management often have limited resources but still need to talk about sensitive things with another manager is an ideal fit for fractional. With a fractional CFO, you get expertise for the things you need, but don’t need to wonder what I’m doing with my time when I’m not there, because you aren’t paying for it.
Other reason we may come in is for process improvements, tech stack recommendations or system implementation. If a company is good on accounting but needs someone with experience in these areas, having someone that sees how more companies do it is helpful.
Not all fractional CFOs are created equal. But if you can find the right fit it can be very beneficial, at least it has in my experience. My setup provides bookkeeping as well, but I’ve learned that I can basically only offer this with 3 clients max so I don’t do marketing.
Posted on 1/12/26 at 12:10 pm to Rex Feral
As has been stated fit is critical here (and for any fractional role)
Where I’ve seen it work:
Entrepreneurial companies without a moderate level of financial leadership in the company. Think companies who get it done and make money but aren’t really sure how. The right fit can help them clean up the books, get reporting and insight straight, etc.
also, when people are looking to do M&A or other specific projects outside the expertise of the current otherwise strong team, they’ll get someone to augment their expertise.
Where it doesn’t work is when you bring someone in to be the savior and they don’t fit the company at all
Where I’ve seen it work:
Entrepreneurial companies without a moderate level of financial leadership in the company. Think companies who get it done and make money but aren’t really sure how. The right fit can help them clean up the books, get reporting and insight straight, etc.
also, when people are looking to do M&A or other specific projects outside the expertise of the current otherwise strong team, they’ll get someone to augment their expertise.
Where it doesn’t work is when you bring someone in to be the savior and they don’t fit the company at all
Posted on 1/12/26 at 12:14 pm to Rex Feral
My uncle does it. He was CFO and retired. New guy not as much experience and they started adding business with some mergers and he went back part time to help. Works from home and likes it.
Posted on 1/12/26 at 12:30 pm to 3nOut
quote:
That's not to knock him, he built a very successful small business, but he's just not a CEO.
Most entrepreneurs do not make good CEO’s of mature companies. I worked for a large healthcare company. The CEO would have an idea on Saturday and would want it implemented in 200 hospitals by Wednesday with no consideration of whether it would work or not. Company had urban and rural hospitals and he thought one size fits all. Horrible leader.
Posted on 1/12/26 at 11:14 pm to Auburn80
quote:
Most entrepreneurs do not make good CEO’s of mature companies
I think he’s aware of it, thus the CRO. We’ve all told him to his face that he’s a fantastic salesman and visionary but running a company is not his thing.
His son (nepobaby but also our most productive team member) and I are working through succession plans. Obviously I’m on the outs with that as a non family member but we’re pretty simpatico moving forward.
This post was edited on 1/12/26 at 11:15 pm
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