What is a fractional CFO?

What is a Fractional CFO? WrightCFO Answers Your Questions

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At WrightCFO, we understand that many UK businesses have questions like “What is a fractional CFO?” and “How much do they cost?” Fractional CFOs are an innovative solution that can provide your company with the expertise of a CFO on a part-time basis, at a fraction of the cost of hiring a full-time executive.

In this article, we answer some of your common questions.


1. What is a Fractional CFO and How Can it Benefit My Business?

A fractional CFO is a highly skilled financial professional who provides CFO-level services to multiple businesses on a part-time basis. This means you get access to the strategic financial guidance and oversight you need, without the high cost of hiring a full-time CFO.

Fractional CFOs can offer a wide range of benefits to UK businesses, including:

  • Improved financial performance and profitability
  • Enhanced financial planning and forecasting
  • Cost savings compared to hiring a full-time CFO
  • Strategic financial leadership and guidance
  • Access to a broader network of financial expertise

2. Is a Fractional CFO Cheaper Than Hiring a Full-Time CFO?

Absolutely. Because you share the cost of a fractional CFO with other businesses, it’s a much more affordable option compared to hiring a full-time employee. You’ll only pay for the services you need, and you won’t have to worry about additional expenses like salary, benefits, and office space.

3. What Services Do Fractional CFOs Offer in the UK?

The specific services offered by a fractional CFO can vary depending on the needs of your business. However, some common services include:

  • Financial planning and analysis
  • Budgeting and forecasting
  • Cash flow management
  • M&A advisory
  • Investor relations
  • Risk management
  • Financial Prep Pre-Investment
  • Assistance in Investment Raise

4. How Much Does a Fractional CFO Cost in the UK?

The cost of fractional CFO services depends on the experience of the CFO, the size and complexity of your business, and the specific services you require. However, it’s generally much more affordable than hiring a full-time CFO.

As a general guideline, WrightCFO charges :

-CFO Consultant £1200/day

-Start Up Special Retainer (for 5 hours a month)-  £650/m

-Charities CFO support £750/day

-Bespoke projects are quoted individually

5. What Are the Qualifications of a Good Fractional CFO?

A good fractional CFO should have a proven track record of success in financial leadership. They should also have strong analytical skills, be able to communicate complex financial information effectively, and have a deep understanding of the countries’ business regulations.

In addition, all WrightCFO Consultants are chartered qualified accountants, some have MBAs and are business coach certified, and all are approachable, relatable, and friendly.

6. What is the difference between a Virtual CFO and a Fractional CFO?

The main difference is location:

  • Virtual CFO: Operates remotely, using technology for communication and collaboration.
  • Fractional CFO: May offer some in-person meetings but still works part-time for multiple clients.

WrightCFO Can Help Your UK Business Thrive

At WrightCFO, we have a team of experienced consultants who are passionate about helping businesses succeed. We offer a flexible and customised approach to fractional CFO services, so you can get the exact level of support you need to achieve your financial goals.

Contact WrightCFO today to learn more about how our fractional CFO services can benefit your business.

This article was originally published on LinkedIn on 1st May 2024.