A fractional CFO is a senior chief financial officer who works with a business part-time, often a few days a month, to lead financial strategy, cash management, funding and investor reporting. It gives SMEs and scale-ups CFO-level judgement without the cost of a full-time finance executive.
What it means
A fractional CFO focuses on forward-looking finance: forecasting, cash runway, pricing, funding rounds, banking relationships and board reporting. They usually sit above a bookkeeper, financial controller or outsourced accountant, who continue to handle day-to-day transactions and compliance.
The role differs from a part-time finance director mainly in emphasis. A CFO tends to be more strategic and investor-facing, while a finance director is often more focused on control, reporting and the finance team.
When you need one
Common triggers include preparing for investment or a sale, cash pressure, a lender asking for better reporting, rapid growth that the current numbers cannot explain, or a private equity owner wanting stronger financial leadership. Leadership Services provides fractional CFOs from its bench of senior directors, from £1,795 per month.
Frequently asked questions
What does a fractional CFO do in the first few months?
Most start by reviewing the management accounts, cash position and forecasting model, then fix the reporting the board relies on. From there they build a rolling cash flow forecast, agree KPIs and work on the priority issue, whether that is a funding round, margin improvement, lender negotiations or preparing the business for due diligence.
Do I still need an accountant if I hire a fractional CFO?
Usually yes. External accountants typically prepare statutory accounts and tax returns, and a bookkeeper handles transactions. The fractional CFO uses that information to guide decisions, manage cash and plan for growth. They often improve how those providers work together rather than replacing them.
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Last updated: 5 November 2026