Fractional CFO Services - The Top 20 CFOs
See our list of the top Fractional CFOs in the US, and learn what a solid outsourced CFO can do for a startup.
We also offer tips on picking and managing a Fractional CFO for your startup.
VP of Financial Strategy
If your startup is growing fast and you need someone to manage your finances, but you’re not ready to hire a full-time employee, you may need a fractional CFO.
A fractional CFO is an experienced Chief Financial Officer who provides services for startups on a part-time, retainer, or contracting basis.
The main responsibilities of a fractional CFO are to:
- Manage the startup’s financial reporting.
- Build and maintain the startup’s projections and budget.
- Execute capital raises i.e., venture capital rounds and handle legal and negotiations for the CEO, such as leases, insurance, etc.
- Manage and support the company’s financial infrastructure.
Fractional CFOs most commonly partner with companies to help overcome financial challenges, achieve growth, optimize strategy, implement systems, raise capital, or navigate an audit and/or transaction. The CFO should be helping translate your company’s metrics into insight that the rest of the management team can use to make strategic, important decisions such as when to make additional hires, when to ramp up sales or marketing spend, or how potential contracts will impact unit economics.
Unlike a full-time CFO who oversees and maintains all general financial strategy or an interim CFO who performs CFO duties before or between CFO hires, a consulting CFO’s duties are usually on a project basis and are specifically tuned to your company’s particular needs, challenges, or goals.
This allows your company to benefit from the experience and expertise of a premium CFO without the operating costs of a full-time CFO ie. salary, benefits, and bonuses.
When does a startup need a fractional CFO?
Fractional CFOs work well for Seed and Series A-C Startups.
All startups should consider hiring a Fractional CFO at least a minimum of one quarter before a new fundraise to avoid overloading the startup CEOs during a fundraise. Having a CFO to work on the projections, prepare KPIs, answer financial reporting questions - and in the best case - come with existing venture capital relationships, will drive a significant amount of leverage for the CEO during this challenging time.
The story is different for seed stage companies. Rarely, if ever, do they need a full time CFO. Rather, business founders should opt to take a Chief Operating Officer title and preserve full time positions, especially during the early stages. Instead, it is probably worth it to bring on a fractional, senior financial professional.
A part-time CFO or experienced accounting CPA firm is a much better fit for most seed and Series A startups because they allow you to lower costs without sacrificing quality output.
Telltale signs your startup is ready for a CFO, despite the series round, include:
- The CEO focuses on distracting financial reporting or projections multiple times a day..
- The CEO and/or COO work closely on multiple client contracts with the sales team.
- The CEO deals with multiple accounting questions a week.
- Your startup is considering going public within the next 12 to 18 months.
Not every fast-growth company needs a fractional CFO, but when it’s time, it’s time! Past Series D, a startup will usually hire a full-time CFO to manage the now growing accounting department, expecting to pay $240K+. However, before you reach Series D, you’ll want to look seriously at hiring for this role, either part time or full time.
20+ of the Top Fractional CFOs
What to look for in a Fractional CFO
Here are a few key items when hiring a senior finance professional on a contracting basis:
A company gearing up to get ready for a $100 million venture raise is very different from a company with more modest capital needs. You need someone who understands your stage and can propel you towards future goals.
If your startup operates in a specialty industry, you may need a specialist. Some industries, such as biotechnology or technology hardware manufacturing, have unique capital and cash flow needs. Finding an outsourced expert can help you craft a financial strategy unique to your business.
You need someone who can provide the right amount of attention to your company for the foreseeable future. Fractional CFOs are in high demand and finding someone who has enough time to dedicate to your business can be a challenge. Working with someone who doesn’t have the bandwidth to give you the attention you need could later become a massive mistake.
A good fractional CFO should be able to provide strategic financial guidance, not just keep the books and handle compliance. They should be able to help you make strategic decisions, evaluate potential opportunities, and identify risks.
It is imperative you choose a partner who will compliment your leadership and management style. If you’re not a detail-oriented CEO, you’ll want to find a finance leader who is comfortable diving into the details. Remember, always look for someone who brings a perspective that compliments your style and grows the company.
Your CFO will need to communicate complex financial information to non-financial people, including other members of your team and potential investors. They need to be able to explain things clearly and succinctly. This is particularly important if you, as a founder, don’t have a deep accounting or finance background - you need someone who can get you up to speed on key concepts, issues and financials quickly.
You’ve found the right fit. What next?
What should a Fractional CFO do at a startup?
- Closing the monthly books and managing financial reporting.
- Managing the budgeting process and the financial projections as well as keeping track of the company’s expected cash out date.
- Fundraising logistics, advice, and coordination such as supplying investors with financials and other due diligence materials.
- Contract negotiations for items like new leases and large vendor contracts.
- Managing the company’s cash and burn as well as making recommendations around hiring or altering the burn rate.
- Developing a short-term, mid-term, and long-term view of the business to better prepare the company’s trajectory and cash position as well as requirements.
- Securing loans or investments and anticipating future owner compensation.
- Enacting systems to support sustainable growth.
Fractional CFO’s are often brought into an organization to help you achieve a specific goal such as raising capital or preparing for a sale, merger, or acquisition or optimize your forward-facing financial visibility.
An outsourced CFO’s services will include anything and everything the company needs to help translate the founders’ vision into reality from a financial lens. Quality startup CFOs understand the importance of translating each founder’s goal into a reality from a financial point of view and can be trusted to work with you to take your company successfully into the future.
Why bring in outside Chief Financial Officer help
Acquiring fractional CFO services for your business can revolutionize financial management and strategic planning. A fractional CFO, like those who often work with Kruze, work part-time with your team, offering high-level financial expertise without the cost of a full-time executive. This role can take on key financial tasks such as financial modeling, budget-to-actuals comparisons, and board meeting preparations. If provided the right system access, they can also track crucial metrics like customer acquisition costs and lifetime value, manage spending categories, and facilitate communication between the startup’s founder and the accounting team.
In particular, Kruze loves working with experienced finance professionals who can help take on the day to day accounting administration, and free up the founder’s time to focus on growing the business.
Is a Fractional CFO worth it?
Fractional CFOs are worth the cost (sometimes as high as $10,000 to $16,000 a month) only if a startup CEO need specific financial advice and work. A part-time finance leader may be worth it if the business needs streamlined financial reporting, oversight on budgeting, better projections, fundraising help, They also step into negotiation roles, handling contract negotiations for new leases or large vendor contracts, and actively manage your startup’s cash and burn rate, making recommendations on optimizing resources.
Additionally, a fractional CFO develops short-term, mid-term, and long-term financial strategies to fortify your startup’s trajectory and cash position, assists in securing loans or investments, anticipates future owner compensation, and implements robust systems to support sustainable growth. Fractional CFOs are often brought on board to achieve a specific goal, such as raising capital or preparing for a sale, merger, or acquisition, thereby translating the founder’s vision into a financial reality.
So, if your startup is aiming to leverage financial expertise without committing to a full-time hire, a fractional CFO can indeed be an invaluable asset.
What do Fractional CFOs Cost?
Fractional CFOs - at least the most experienced finance leaders we recommend to startup founders - usually charge in one of two ways: hourly or by the day/month.
- Hourly costs can range from $250 to $500 an hour.
- Daily or monthly costs are anywhere from several thousand dollars a day to over $10,000 for multiple days in a month.
Most part-time finance professionals are looking for a recurring relationship and don’t tend to do one off projects. Instead, they choose to work with companies that they can support over the longer term on a variety of projects from fundraising advice to financial modeling, board meeting preparation, and operational management.
How to Hire a Fractional CFO for Your Startup
To hire a fractional CFO for your startup, you can follow these steps:
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Determine your needs
Assess your startup’s financial management requirements and identify the specific tasks and responsibilities you need a fractional CFO to handle. This may include financial reporting, budgeting, capital raises, legal and negotiation support, and managing the company’s financial infrastructure.
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Research and shortlist candidates
Look for fractional CFOs who have experience working with startups and understand the unique challenges and needs of your industry. Consider factors such as their expertise, industry knowledge, and track record of success. The provided list of top fractional CFOs can serve as a starting point for your research.
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Evaluate their stage expertise
Ensure that the fractional CFO you choose has experience working with companies at a similar stage of growth as yours. This will ensure they understand your specific needs and can help you achieve your future goals.
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Consider specialization
If your startup operates in a specialized industry, such as biotechnology or technology hardware manufacturing, consider hiring a finance professional with expertise in that field. They will have a better understanding of your industry’s unique financial requirements.
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Assess their availability and attention
It’s important to find a fractional CFO who can dedicate the right amount of time and attention to your startup. Ensure they have the capacity to handle your workload and won’t be stretched too thin with other clients.
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Conduct interviews
Schedule interviews with the shortlisted candidates to assess their compatibility with your team and their ability to understand and meet your startup’s financial needs. Ask relevant questions about their experience, approach, and how they can add value to your business. Read our article on what a good CFO does to help you think about the questions to ask.
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Negotiate terms and fees
Discuss the terms of engagement, including the scope of work, duration, and compensation. Ensure that both parties are clear on expectations and that the fees align with your budget.
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Sign an agreement
Once you have selected a fractional CFO, formalize the engagement by signing a contract or agreement that outlines the terms, responsibilities, and deliverables.
Remember, hiring a fractional CFO is an investment in your startup’s financial success. By carefully selecting the right candidate, you can benefit from their expertise and guidance without the cost of a full-time employee.
How to get solid fractional CFO help
To secure fractional CFO services for your business, consider reaching out to reputable accounting firms like Kruze. Another route is to ask your investors if they have specific individuals who have helped similar companies.
Keep in mind, the ideal candidate should not only have financial expertise but also experience in your industry, understanding of your business model, and a cultural fit with your team.
Hiring a fractional help can not only help you streamline your financial operations but also offer strategic insights to aid your business’s growth.
What does a fractional CFO cost?
Fractional CFOs typically have one of two main pricing structures. The first is an hourly rate - we are seeing rates from $250 to $500 an hour - or they charge by the day, with a commitment of one to two days per week. Please note the video below has somewhat dated pricing.
The pricing structure of fractional CFOs is significantly influenced by their capacity to manage multiple clients simultaneously. As they typically work with anywhere from three or four clients to up to eight clients, their pricing model needs to reflect not only the value they provide but also the time they can allocate to each client.
If they charge an hourly rate, generally between $250 to $500, the total cost for a client will depend on the number of hours dedicated to that client. However, the client should be mindful that the executive’s time is divided among several clients, which might limit their availability. This is a common issue we see with founders who are fundraising or doing a more complicated transaction.
Alternatively, if the CFO charges a fixed monthly fee, it implies a commitment to dedicate a specific amount of time, often one full day per week, to the client’s business. This model provides more predictability in cost and guaranteed time allocation. However, it’s crucial to ensure that the CFO isn’t overextended, as this could compromise the quality and value of their service.
Another item to note is that many startups have their executive meeting on Monday mornings - which can make it impossible for an outsourced executive juggling multiple clients to appear on every client’s Monday morning call.
It’s worth noting that despite juggling multiple clients, a good Fractional CFO will maintain transparency about their availability and capacity, ensuring they can deliver the necessary value to each of their clients. We’ve found that the best ones are able to take a ton of work off of the founder’s plate, while simultaneously improving the company’s financial reporting and strategy.
Recent Podcast Interviews with CFOs and Fractional CFOs
The Role and Impact of a Fractional CFO in VC-Backed Startups
Venture capital-backed startups face a unique set of financial challenges and opportunities. As these companies scale, the need for expert financial oversight becomes critical. A Fractional Chief Financial Officer (CFO) can be a strategic addition to your team, bringing in financial expertise without the commitment of a full-time executive. In this article, we’ll explore how engaging a fractional CFO can benefit your startup.
Financial Expertise on Demand
A fractional CFO brings a wealth of financial expertise to your company. With experience in handling financial operations for multiple companies, they offer a breadth of knowledge that can help streamline your accounting team’s efforts and enhance your financial processes. Their skills are especially beneficial in strategic planning and implementing systems that improve your company’s financials.
Strategic Financial Planning
Financial planning is a critical component of a startup’s success. A fractional CFO uses their expertise to analyze financial data and provide insights that help shape the company’s financial strategy. By establishing robust financial statements and cash flow management protocols, they ensure that you are well-equipped to make informed decisions that drive growth.
Customized Fractional CFO Services
When hiring a fractional CFO, you can tailor their services to meet your specific needs. Whether you require assistance with financial analysis on a project basis or need ongoing support through a fractional CFO services agreement, these professionals adapt to the role that best serves your startup. Their flexible approach allows you to benefit from experienced CFO services without the overhead of a full-time CFO.
Advantages for Part-Time Needs
For many startups, the financial acumen of a chief financial officer is necessary, but the volume of work may not justify a full-time position. A part-time CFO can address this gap, offering their services to ensure that key financial responsibilities, such as cash flow analysis and oversight of financial statements, are expertly managed.
Financial Management for Growth
A fractional CFO is not just about managing the day-to-day financials; they are a key player in setting the stage for future success. They work closely with your finance team to identify areas where financial performance can be enhanced, and they play a crucial role in helping the company achieve growth through effective financial management.
The Impact on Financial Visibility
A fractional CFO can significantly improve forward-facing financial visibility. By providing detailed financial statements and engaging in thorough financial analysis, they ensure that both internal stakeholders and potential investors have a clear picture of the financial health and trajectory of the startup.
The Value of Fractional CFO Services
In the dynamic world of VC-backed startups, the value of fractional CFO services cannot be overstated. With the ability to hire a fractional CFO, you gain access to a level of financial management that can be the difference between staying afloat and scaling new heights. They assist in navigating the complexities of financial management, from routine accounting tasks to the strategic allocation of resources.
Conclusion
The role of a fractional CFO is transformative for startups looking to solidify their financial foundation while pursuing aggressive growth. By integrating their expertise into your financial strategy, you position your startup for success, equipped with the tools and insights to navigate the competitive landscape of venture capital-funded enterprises.
Startups interested in exploring the benefits of a fractional CFO are encouraged to reach out and discover how this strategic role can be customized to fit their unique financial landscape.
Do You Need a CFO or Controller?
Understanding whether your startup needs a CFO or a Controller is a crucial step in building a strong financial foundation. Figuring out which role you need depends on your current financial needs and strategic goals.
If your startup requires meticulous day-to-day financial management, compliance oversight, and robust internal controls, a Controller might be the right choice. Controllers ensure financial accuracy and help build a solid accounting foundation.
On the other hand, if your startup is at a stage where strategic financial planning, fundraising, and investor relations are critical, a CFO could provide the leadership needed to drive growth and scale your business. CFOs bring a strategic perspective, helping to shape long-term financial strategies and manage capital effectively.
For a detailed comparison to help you make an informed decision, visit our CFO vs Controller page. This resource outlines the key responsibilities and skill sets of each role, guiding you to determine the best fit for your startup’s specific needs. Whether you’re looking for strategic financial guidance or day-to-day financial oversight, we can help you find the perfect fit for your team.
How To Find A Fractional CFO
Finding a fractional CFO is a strategic move for businesses looking to address financial challenges without committing to a full-time hire. Here’s how you can find the right fractional CFO for your needs:
- Identify Your Needs: Start by assessing your company’s financial challenges. Determine what specific expertise you need—whether it’s cash flow management, financial forecasting, or strategic planning. Understanding these needs will guide you in finding the right fractional CFO who can offer targeted solutions.
- Search for Fractional CFO Companies: Look for companies that specialize in providing fractional CFO services. These firms often have a pool of experienced CFOs who can step in and address your financial needs on a part-time basis. Research online, ask for referrals, or consult industry networks to find reputable fractional CFO companies.
- Explore Outsourced CFO Services: Many businesses offer outsourced CFO services as part of their financial management solutions. These services are often customizable, allowing you to hire a CFO on a fractional basis that fits your budget and requirements. This option is particularly useful if you need ongoing support without the full-time cost.
- Evaluate Expertise and Fit: Once you’ve identified potential candidates or firms, evaluate their expertise and how well they align with your company’s culture and goals. The right fractional CFO should not only have the technical skills but also the ability to integrate with your team and understand your business.
By leveraging fractional CFO or outsourced CFO services, you can efficiently address your financial challenges and set your company on a path to growth.
Written by experienced Fractional CFOs
Fractional CFOs Near Me
Looking for fractional CFO services near you?
With an extensive list of experienced finance professionals around the US, we’ve likely got an expert in our network who is near you.
Fractional CFOs Near San Francisco
At the epicenter of innovation and venture capital, San Francisco is a critical hub for high growth startups that need robust financial management and CFO level advice. Our firm, deeply embedded in the San Francisco startup ecosystem, specializes in providing top-tier fractional CFO services tailored to this unique environment.
We understand that navigating the VC funding landscape in San Francisco requires a blend of local insight and financial expertise. Our fractional CFOs bring an unmatched depth of knowledge in managing finances for rapidly scaling startups in the Bay Area. From structuring efficient tax strategies to optimizing cash flow for growth, we are adept at addressing the specific challenges faced by San Francisco startups.
Our team offers more than just financial acumen; we provide a strategic partnership that leverages our understanding of San Francisco’s competitive startup scene to help secure VC funding and steer financial decision-making. Located conveniently for businesses in San Francisco, our fractional CFO services are designed to propel startups to new heights, ensuring they are well-equipped to thrive in one of the world’s most dynamic business landscapes.
Fractional CFO Services Near New York City
In the bustling financial landscape of New York City, renowned for its dynamic startup scene and vibrant venture capital environment, our firm offers specialized fractional CFO services tailored to the unique demands of this region.
Our deep-rooted understanding of the New York City market equips us with the expertise needed to navigate the complexities of VC funding and financial management for rapidly growing startups. We leverage our local knowledge to provide strategic financial guidance that aligns with the pulse of NYC’s business ecosystem. From Wall Street to Silicon Alley, our fractional CFOs are well-versed in the intricacies of New York’s diverse economic sectors, offering insights into effective tax strategies, cash flow optimization, and capital structuring tailored for New York City startups.
By partnering with us, NYC-based startups gain a valuable ally in managing their finances, securing VC funding, and navigating the competitive landscape of one of the world’s foremost financial capitals.
Austin Texas
In the rapidly growing entrepreneurial hub of Austin, our firm stands at the forefront of providing specialized fractional CFO services, finely attuned to the unique needs of this burgeoning startup ecosystem.
Austin’s thriving market, with its mix of tech innovation and vibrant venture capital activity, demands a nuanced approach to financial management and VC funding strategies. Our team and network of finance experts bring a wealth of local experience, adept at steering Austin-based startups through the complexities of fundraising and financial scalability.
We are intimately familiar with Austin’s business landscape, from the bustling downtown corridors to the tech-centric suburbs, enabling us to deliver tailored financial guidance that resonates with the city’s unique economic pulse. Our services encompass strategic planning, effective cash flow management, and insightful financial analysis, all designed to empower Austin’s startups to navigate their growth journey successfully. By leveraging our local expertise in Austin, we provide startups with the financial acumen and strategic foresight necessary to thrive in one of America’s most dynamic entrepreneurial environments.
Affordable Startup Bookkeeping and Accounting
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Ideal for high-growth, well-funded businesses
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Recent blog posts on startup CFOs
Looking for more insights into startup finance? Check out our latest blog posts on startup CFOs and financial strategy.
