Typical Hourly Rates for Fractional CFO Services
The average CFO now earns $441,100 per year. That’s more than most small and mid-sized businesses can afford, which is why many are turning to fractional CFOs.
Fractional CFO services give you access to experienced CFO talent that you only pay for when you need it. But how much can you really save? And what should you expect to pay per hour for a qualified fractional CFO? Read on to find out.
How Much Does a Fractional CFO Charge Per Hour?
Fractional CFOs generally charge between $200 and $350 per hour. However, your quotes could vary based on the factors covered in the next section.
Fractional CFOs can feel expensive if you only look at their hourly rate. But don’t forget, you’re comparing this option to hiring a CFO full-time. From that perspective, the potential savings become significant.
For example, you may only need a fractional CFO for 20 hours per month. If they charged $250, you would end up paying around $60,000 annually — over $381,000 less than the average cost of a full-time CFO.
Factors Influencing Hourly Fractional CFO Rates
Your exact quotes for fractional CFO services will depend on the following three key factors.
Experience
First, your price will depend on your fractional CFO’s experience. Professionals who have worked for large companies for many years cost more per hour than relatively new CFOs.
Location
Your location could also factor into how much a fractional CFO charges. For example, living expenses in New York City are extremely high, and wages tend to reflect that. If you want an NYC-local fractional CFO, you may have to pay more for one.
The good news is that many fractional CFO services are remote. This means you can shop around until you find the best deals if you don’t need a part-time CFO who can come to your offices in person.
Industry
Finally, your company’s industry can influence how much it has to pay for a fractional CFO. A fractional CFO for a general SaaS business may be more affordable than one who specializes in the mining industry.
Generally, the more industry-specific expertise you need from a fractional CFO, the more you should expect to pay for one.
How To Save When Hiring a Fractional CFO
If you’re interested in hiring a fractional CFO, make sure to shop around for the best rates. You don’t have to enter into an agreement with the first service you contact.
However, costs aren’t everything.
You’ll still want to choose a provider you feel comfortable partnering with long-term. You might also consider if a fractional CFO is truly what you need. You may be able to save money by hiring an outsourced accounting service instead.
If you’d like to get some help with making this decision, get in touch with an expert at CFO Hub. We offer fractional CFO services, back-end accounting support, and many other forms of remote business assistance.
Schedule a free consultation today and we’ll help you find the right solution for your business.