For many SMEs, finance is one of the last areas to receive strategic investment, with the founder or CEO of the business wearing this hat instead. Yet as a business scales, so do its financial risks and the cost of missed opportunities.

This is where a fractional CFO can step in, offering high-level financial leadership without the commitment or cost of a full-time hire.

But is a fractional CFO really worth it? Should you bring one into your business? And what sort of return can you expect on that investment? In this article, we explore those questions and offer a clearer picture of the financial value a fractional CFO can provide.

Photo sourced from Kraken Images on Unsplash

What is a fractional CFO?

A fractional CFO is a part-time or project-based financial leader who brings the same level of strategic insight as a full-time CFO, but works with your business on a flexible basis. They’re particularly valuable for growing companies that need expert financial direction but aren’t yet in a position to hire someone full-time.

The appeal is clear: you get access to senior financial expertise when you need it, without committing to the full cost of a permanent position.

But beyond this flexibility, the real value lies in what a fractional CFO can help you achieve. From cash flow forecasting to funding readiness, they elevate your decision-making with clarity and precision.

Does my business even need a fractional CFO?

If your business is evolving, you may already feel the tension: rising revenue but unclear margins; more staff but less financial confidence; growing ambition without the financial infrastructure to support it. These are common signs that senior financial leadership is needed, even if only for a few days a month.

You can read more about this in our blog on 5 tell-tale signs you need to hire a Finance Director, which equally applies to fractional support.

Fractional or full-time?

When deciding if a fractional CFO is worth it, it helps to understand how this model compares with hiring a full-time CFO. A fractional CFO offers strategic input, but at a significantly lower cost, typically charging for the time and scope you need. This creates flexibility, enabling you to scale support up or down as your business changes.

A key benefit of fractional CFOs is the breadth of their experience. Many have worked across multiple industries and understand the nuances of growth-stage finance. Their ability to step in quickly and apply best practices across forecasting, financial reporting, pricing strategies and investor relations can make a measurable impact within weeks.

As our founder, Anita Tweats, puts it: "Tapping into senior financial leadership as & when required is a great decision for scaling businesses, avoiding the high cost of a full-time CFO. They can also offer greater experience of the issues SMEs face due to working with various clients."

Criteria	Fractional CFO	Full-Time CFO
Strategic Financial Input	Yes	Yes
Cost	Lower (flexible hours or project-based)	Significantly higher (salary + benefits + NI)
Flexibility	High - scalable to your needs	Low - fixed contract
Range of Experience	Broad - often working across several sectors	Broad - often working across several sectors
Commitment	Part-time or project-based	Full-time, ongoing
Onboarding Time	Fast - experienced with plug-and-play integration	Slower - long-term cultural alignment needed

What can a fractional CFO offer my business?

To understand ROI more tangibly, it helps to look at what a fractional CFO typically delivers. While it varies by business, common outcomes include improved forecasting, clearer decision-making frameworks, cost control strategies, and better investor readiness. All of these contribute to a more stable and scalable business. Discover the benefits of a fractional CFO.

Take TMT First, for example. In our case study, we outline how this tech logistics company used fractional CFO support to improve financial oversight and prepare for strategic growth. With better visibility and stronger financial processes in place, they were able to make confident investment decisions and manage risk more effectively. Read more case studies here.

It’s not just established companies who benefit. For early-stage ventures, a fractional CFO can be a vital strategic partner. If you're wondering whether your startup needs a CFO, this blog walks through the factors to consider.

What if I’m already handling the finances myself?

Considering the opportunity cost of going without and continuing to manage your finances yourself? Businesses that delay this level of financial leadership often find themselves in reactive mode: struggling with cash flow surprises, missed tax planning windows, or decisions made without adequate financial insight.

As our blog on the true cost of DIY finances explains, the risk isn't just inefficiency, it's making decisions based on incomplete or outdated information.

What does ROI really look like for a fractional CFO?

When considering whether a fractional CFO is worth it, it's helpful to break down the different types of value they deliver. A strong fractional CFO typically delivers ROI in three core areas:

Strategic ROI: This is about aligning your financial systems and decisions with long-term business goals.

Creating a 12–24 month financial roadmap to guide hiring, investment, and pricing
Supporting M&A readiness or investor due diligence with accurate, structured data
Challenging assumptions and modelling different growth scenarios for decision-makers

Operational ROI:Focused on improving how your finance function runs day to day, reducing inefficiencies, and mitigating risk.

Introducing rolling cash flow forecasts to pre-empt shortfalls
Establishing cost controls and reviewing supplier contracts for savings
Upgrading reporting processes to deliver faster, more meaningful monthly insights

Cultural ROI: Often underestimated, this is about embedding financial awareness and accountability across the wider team.

Helping department heads understand budget impact and profitability
Introducing KPIs and dashboards that influence behaviour and drive action
Creating a culture of informed, data-driven decision-making throughout the business

While fractional CFOs are inherently more cost-efficient than full-time hires, their value also extends far beyond the savings. These three dimensions of ROI combine to create a more confident, more scalable, and ultimately more resilient business.

How to hire the right fractional CFO for your business

So, we’ve convinced you! How do you go about hiring the right fractional CFO? Hiring the right financial leader, even on a part-time basis, is about finding someone who can unlock value and align financial operations with your vision. If you're considering this route, our blog on the dos and don'ts of hiring a Finance Director offers helpful guidance.

So, is a fractional CFO worth it?

If you’re looking for clearer insight, tighter financial control, and better decision-making, without the cost or commitment of a full-time hire, then yes, a fractional CFO can absolutely be worth it.

Their value lies not only in the work they do, but in the mindset and structure they bring to your business. It’s a move that signals maturity, readiness, and strategic intent - qualities that attract both talent and investment.

And because the support is flexible, it’s a solution that can grow with you.

At The Finance People, we help SMEs access exactly this kind of support, tailored to your stage, sector, and goals. If you're exploring your options, we’d be happy to have a no-obligation discovery session to discuss what kind of financial leadership could work best for you.

Is a Fractional CFO Worth It? Breaking Down the ROI