Full-Time CFO vs. Fractional CFO: What’s the Real Cost for Your Business?
As your business grows, so does financial complexity. Forecasting, cash flow management, investor reporting, pricing strategy — these go well beyond bookkeeping. That’s when many business owners realize: we need a CFO.
But do you hire full-time, or bring in fractional expertise?
The answer often lies in what you truly need — and what it will cost you. Let’s break it down.
Cost Comparision
For a small business, hiring a full-time CFO can easily exceed $300,000/year in total cost.
A fractional CFO gives you access to senior finance expertise at a fraction of that cost — with none of the overhead.
🎯 When Does a Full-Time CFO Make Sense?
You’ve crossed $50M+ in revenue
You’re managing multiple legal entities or global operations
You need daily financial leadership, investor relations, or acquisition support
You're preparing for IPO or institutional fundraising
🤝 When a Fractional CFO Is the Better Fit
You’re in the $2M–$50M revenue range
You need forecasting, dashboards, pricing strategy — but not 40 hours/week
You’re not ready for a full-time executive salary + benefits
You need help setting up finance infrastructure, cash planning, or board reporting
Your company is in transition (M&A, PE-backed, founder scaling up)
🧠 Example: The $12M Distribution Company
A Texas-based distribution company burning through $500K in working capital due to poor inventory turns and reactive pricing.
They didn’t need a full-time CFO — but they did need:
Better cash flow visibility
Pricing strategy for margin recovery
KPI dashboards for sales and inventory
Cost of hiring a full-time CFO: $270,000/year
Cost of Fractional CFO support: $8,000/month for 6 months
In 90 days, Fractional CFO can deliver:
13-week cash flow model
Inventory reduction strategy
Pricing restructure to protect margins
The ROI was 5x the investment — and they dont need to hire a full-timer until they were ready.
💬 Final Thoughts
A full-time CFO is a powerful asset — when your business can truly justify the cost and complexity.
Until then, a fractional CFO gives you financial clarity, confidence, and control — without the burden of a full-time hire.
At RelyCFO, we provide strategic finance leadership tailored to your business stage and budget. No fluff. Just results.
📞 Ready to explore what a fractional CFO can do for you? Let’s talk.