Running a business comes with its own set of challenges, from managing cash flow to scaling operations. At some point, many business leaders find themselves stretched thin, trying to juggle financial strategy alongside day-to-day operations. This is where fractional finance expertise can be a game-changer. But when is the right time to bring in additional support, and what’s the return on investment?
Signs your business could benefit from fractional finance support
Perhaps you’re a co-founder within a fast-growing scale-up that has just completed an investment round. You’ve got a cash runway for the next 18-24 months and until now you’ve been wearing the finance hat – but you’re needed elsewhere in the business. Now feels like the right time to professionalise the finance function, finding a scalable solution that gives confidence to investors.
Or maybe your business has already scaled rapidly, having received investment a few years ago. Your success may be starting to plateau, with investors at your door keen to realise a return on their investment. How will you ensure you can focus on the areas where you’re getting the most value, without wasting any resources?
A fractional CFO can take care of your finances, creating a function that operates as a strategic resource for your business. They can support you to overcome:
- Cash flow concerns – Struggling with cash flow management or forecasting? A fractional CFO can help stabilise and optimise financial processes.
- Lack of financial visibility – If financial reporting is inconsistent or unclear, an expert can provide the insights needed for strategic decision-making.
- Rapid growth or scaling plans – Expansion requires solid financial planning. Fractional expertise ensures growth is sustainable.
- Fundraising or investment readiness – Whether securing funding or preparing for an acquisition, a finance expert makes the process smoother and more credible.
- Compliance and risk management – Staying on top of regulations and mitigating financial risks is crucial. A fractional CFO ensures compliance without the need for a full-time hire.
Why opt for a fractional CFO?
Hiring a full-time Chief Financial Officer (CFO) can be a significant financial commitment, with salaries often exceeding £100,000 per year, plus benefits. For many SMEs, this isn’t a viable option. This is where a fractional CFO makes sense.
- Cost-effective solution – A fractional CFO provides high-level financial expertise at a fraction of the cost of a full-time CFO.
- Scalability – Flexible support means businesses only pay for the expertise they need, whether a few days a month or more intensive support during key growth phases.
- Strategic value – While a bookkeeper focuses on transactions, a fractional CFO offers strategic planning, financial forecasting, and risk management.
What will a fractional CFO actually do?
- Financial strategy and planning – Align financial goals with business objectives, ensuring sustainable growth.
- Cash flow management – Improve cash flow forecasting and working capital efficiency.
- Financial reporting and analysis – Provide accurate, data-driven insights to inform business decisions.
- Fundraising and investor relations – Help secure funding and manage investor expectations.
- Compliance and risk management – Ensure regulatory compliance and mitigate financial risks.
- Profitability and cost optimisation – Identify cost-saving opportunities and improve profit margins.
How does it pay off?
Investing in external finance expertise leads to better decision-making, improved profitability, and stronger financial health. With a fractional CFO, businesses gain strategic insight without the high overhead costs of a full-time executive. Whether it’s guiding growth, securing investment, or optimising cash flow, the right financial support makes a measurable difference.