When investors start asking 3-year models and sensitivity analysis, “clean books” isn’t enough.

Sarah had bootstrapped her e-commerce platform to $3.2M ARR. Investors were circling. Her accountant kept the books clean, but when a VC asked for a three-year financial model with sensitivity analysis, she realized she was out of her depth. A full-time CFO meant ~$250K plus equity—capital she needed for inventory and marketing. That’s when she discovered fractional CFO services.

According to Deloitte’s 2024 CFO Signals report, 67% of finance leaders at high-growth companies now prioritize strategic planning over traditional accounting functions. Fractional CFO services have emerged as the solution for startups, franchises, and scaling SMBs that need C-level financial expertise without the full-time expense.

What Are Fractional CFO Services?

Fractional CFO services provide strategic financial leadership on a part-time, contract, or project basis. Unlike traditional accounting that looks backward, fractional CFOs operate forward—building financial models, advising on capital allocation, preparing companies for fundraising, and guiding critical growth decisions.

Think of it as having a seasoned financial executive 10–20 hours per week instead of 40+. You get the same caliber of expertise used by venture-backed unicorns and private-equity portfolio companies—right-sized to your stage, budget, and challenges.

Core Responsibilities of a Fractional CFO

  • Financial Planning & Analysis (FP&A): Three-statement models (P&L, balance sheet, cash flow), scenario planning, variance analysis, and KPI dashboards that turn data into decisions.
  • Fundraising & Investor Relations: Pitch-ready financial narratives, due-diligence management, investor updates, and stakeholder alignment.
  • M&A Advisory: Buy-side/sell-side leadership, QoE support, valuation models, deal structuring, and post-close integration.
  • Cash Flow Management: Working-capital forecasting, payment-term optimization, credit-line strategy, and runway protection.
  • Strategic Decision Support: Pricing, market expansion, unit economics, product mix—finance at the table for every major call.
  • Systems & Process Optimization: Tool selection (e.g., QuickBooks/Xero/NetSuite), automated reporting, internal controls, and scalable ops.

How Fractional CFOs Differ from Accounting or Consulting

  • Accountant: Tracks what happened and keeps you compliant.
  • Consultant: Delivers a report and departs.
  • Fractional CFO: Joins the leadership team—challenges assumptions, attends strategy meetings, and stays accountable for outcomes over time.

 

They answer questions like:
 Can we afford three new locations next quarter? Should we take venture debt or dilute with equity? What margin hits breakeven by Q3?

Who Needs Fractional CFO Services?

Best fit: companies in transition—growing fast, raising capital, managing complexity, or hitting strategic inflection points.

Startups Preparing for Fundraising

Series A investors expect detailed models, CAC/LTV math, and data-backed projections. A fractional CFO builds investor-ready finance, pressure-tests assumptions, and coaches you through diligence. (BLS lists the median annual wage for financial managers at $156,100, but seed-stage startups can access CFO-level support for $5K–$10K/month.)

Franchise & Multi-Location Businesses

Unit-level reporting, consolidated visibility, and capital allocation—know which locations deserve reinvestment and which need intervention.

Private-Equity–Backed Companies

PE sponsors demand predictability, margin discipline, and exit clarity. Fractional CFOs provide rigor without fixed overhead, especially through integrations and between funding rounds.

Key Benefits (Beyond Cost Savings)

Strategic Financial Leadership—Without the Full-Time Burn

Experienced mid-market CFOs often command $200K–$400K base plus bonuses/equity. Fractional support typically costs $60K–$150K annually and scales up during peaks (fundraising, audits, M&A) and down in steady months.

Investor-Ready Reporting & Forecasting

Cap tables, waterfalls, dilution, convertibles—the financial language investors speak. Expect rolling 13-week cash forecasts, current cap tables, and board decks with variance commentary that support your valuation narrative.

M&A Execution

QoE, working-capital adjustments, earnouts, indemnities—structure deals that protect enterprise value and integrate without operational drag.

Fractional vs. Full-Time: Which Is Right for You?

  • Complexity: Multi-entity, international tax, complex rev-rec, or heavy regulation may justify full-time; most SMBs don’t need 40+ CFO hours.
  • Budget: At $2M revenue, a $300K hire is 15% of revenue—often unsustainable. Fractional lands around 1–3% of revenue.
  • Stage: Pre-revenue? Usually premature. $1M–$15M and/or pre/post funding, multi-location, or M&A? Fractional sweet spot.

 

“We hired a fractional CFO at $2.5M ARR for Series A prep. She built the model, ran diligence, and stayed through the raise. At $8M ARR we hired full-time—and she helped recruit and onboard. The continuity was invaluable.”

What the First 90 Days Look Like

Weeks 1–3: Discovery & Financial Health Assessment

A strategic audit of model, revenue drivers, cost structure, cash patterns, reporting—not compliance. Expect quick wins and clarity (e.g., standardize chart of accounts, fix churn/LTV math).

Weeks 4–8: Systems, Reporting & Forecasting

Implement/upgrade tools, automate close, build dashboards, and launch rolling cash forecasts. You should answer “burn rate” and “breakeven next quarter?” in 30 seconds, not 30 hours.

Weeks 9–12: Strategic Planning & Growth Roadmap

Base/upside/downside scenarios, assumption stress tests, and a financial operating plan with weekly/biweekly reviews.

Pricing Models

  • Monthly Retainer: $5K–$15K for 10–25 hours (meetings, reporting, model updates, ad-hoc strategy). Predictable and engaged.
  • Hourly: $200–$400/hr for project-based work (M&A, fundraising, systems).
  • Equity: Early-stage options 0.25%–1.0% for alignment and cash conservation (structure carefully to protect your cap table).

ROI Timeline

  • Immediate (30–60 days): Better cash forecasting, vendor term renegotiations, and visibility into unprofitable lines.
  • 3–6 months: Faster fundraising with stronger terms; avoid costly misallocations and mistimed hires; M&A readiness.
  • 6–18 months: Compounded discipline—higher capital efficiency and faster, more predictable scale.

Real-World Examples

  • Multi-Unit Fitness Franchise: Implemented unit-level P&Ls, fixed two negative-margin sites, renegotiated leases, opened four high-fit locations. $4.2M → $7.8M in 18 months with +6 pts margin.
  • B2B SaaS (Series A): Rebuilt model with cohort forecasting; cleaned rev-rec; ran diligence. Raised $8M at $40M—25% above founder’s original target.
  • E-Com Exit: Identified $400K working-capital adjustments and structured an earnout; closed 12% above LOI.

7 Signs You’re Ready

  1. Fundraising requires investor-grade models and reporting.
  2. >$1M revenue and decisions now carry real financial risk.
  3. Multi-location or multi-unit ops with unclear per-unit performance.
  4. Considering buy-side or sell-side M&A.
  5. Board/investors ask runway, unit economics, or scenario questions you can’t answer quickly.
  6. You spend 10+ hours/week on finance instead of product/sales/ops.
  7. You see growth opportunities but lack modeling to vet ROI and risk.

If 3+ apply, fractional CFO support likely delivers measurable ROI.

Getting Started

Fractional CFO services bridge the gap between basic accounting and full-time financial leadership—delivering strategic expertise scaled to your stage, budget, and growth trajectory. The companies that scale don’t just build great products—they make smart financial decisions at every stage.

Exact Partners specializes in strategic financial leadership for startups, franchises, and scaling SMBs—fundraising, M&A advisory, multi-location finance, and growth strategy tailored to your needs.

Schedule a consultation: getexact.com • (716) 249-6434