The Cost of Hiring a Fractional CFO and What to Expect

Companies looking into hiring a fractional CFO tend to focus only on hourly rates rather than what different levels of service provide. While fractional CFO costs typically range between $200 and $350 per hour, what you get from your experience largely depends on the service you want to pay for.

Service Levels and What to Expect

Different price points correspond to different service levels and expertise in the fractional CFO market. A company with straightforward needs and a small team may need only occasional support, while a rapidly growing company undergoing a major transformation may need a much more hands-on approach. Identifying the type of service you need is the first step to understanding how much a fractional CFO service will cost you.

Entry-Level Services

At this foundational tier, fractional CFOs focus on overseeing the most important financial processes. These services are especially valuable for small businesses and startups transitioning from basic bookkeeping to professional financial management.Entry-level services, which can cost between $1,500 and $3,000 per month, usually include:

• Monthly financial statement review and reconciliation
• Basic budgeting assistance and cash flow projections
• Regular financial updates and variance analysis
• General financial advice and troubleshooting
• Basic tax planning coordination

This level works well for businesses generating less than $5 million in annual revenue or those just beginning to formalize their financial operations. For example, a growing e-commerce business might use entry-level services to establish a proper financial tracking system.

Intermediate Services

Mid-tier services are a considerable step up in both strategic and financial sophistication. At this level, CFOs take a more proactive role in shaping the company’s strategy. Companies in this tier usually pay between $3,000 and $6,000 per month and receive comprehensive support, which includes:

• Detailed financial analysis and multi-scenario forecasting
• Strategic planning and execution support
• Assisting in investor relations and preparing pitch deck presentations
• Creating comprehensive reporting packages with industry benchmarking
• Optimizing capital structure and funding strategy

This service level is ideal for companies generating $5 million to $20 million in revenue or those going through a period of rapid growth.

Advanced Services

Premium-level services give companies comprehensive financial leadership that’s almost equivalent to a full-time CFO. These arrangements, which can cost between $6,000 and $12,000 per month, include:

• Complex financial modeling and scenario analysis
• Merger and acquisition support, including due diligence
• International expansion strategy and implementation
• Sophisticated risk management and compliance support
• Department building and team development
• Executive team coaching and mentoring

Companies generating more than $20 million in revenue or dealing with complex financial situations, like a merger, benefit the most from this level of service.

Maximizing Return on Investment

Companies can maximize their investment in fractional CFO services by defining a clear scope for the services they require. For example, they can list out specific projects and deliverables along with the expected time commitment to prevent scope creep or avoid wasting time working on areas that aren’t a priority. Another benefit of fractional CFO services is that companies can adjust their service levels according to their budget and needs — that is, they can scale their services up and down as needed.

Hire a Fractional CFO From CFO Hub

CFO Hub understands that every business has different needs and budgetary requirements. We offer flexible fractional CFO services that adapt to every budget, giving you exactly what you need when you need it.Contact us for a free consultation today.