Interim CFOs and fractional CFOs are both temporary, part-time solutions for businesses in need of financial expertise, but they differ in a few key ways.
Interim CFOs are typically hired to fill a temporary leadership gap in a company. This could be due to a sudden departure of a CFO or during a transition period when a new CFO is being recruited. Interim CFOs are usually brought in for a fixed period of time, often six to twelve months, and are responsible for leading the finance department, managing day-to-day operations, and developing financial strategies. They are usually full-time employees and work on-site at the company’s location.
Fractional CFOs, on the other hand, are outsourced financial experts who work part-time for multiple clients. They provide strategic financial advice and guidance, but do not typically manage the day-to-day financial operations of a company. Fractional CFOs are usually engaged on an ongoing basis and work remotely, providing guidance and support as needed. They are often hired by small businesses and startups who cannot afford to hire a full-time CFO.
To summarise, interim CFOs are temporary full-time employees who fill a specific leadership gap, while fractional CFOs are part-time outsourced experts who provide strategic financial guidance and support on an ongoing basis.
