Introduction

You’ve grown your business past the startup phase. The numbers are bigger, investors are circling, and decisions are getting riskier. Suddenly, a bookkeeper or accountant just isn’t enough. You need someone who can steer the financial strategy — without the full-time CFO price tag. Enter the fractional CFO.

But not all fractional CFOs are created equal.

In this guide, we’ll break down exactly what to look for in a fractional CFO, how to assess fit, and what red flags to avoid — so you can bring senior financial expertise into your business without wasting time or money.

What Is a Fractional CFO?

A fractional CFO is a part-time or contract-based Chief Financial Officer who provides high-level financial strategy, systems oversight, forecasting, and investor communications — without being a full-time hire.

They’re ideal for businesses that need financial leadership but don’t yet need (or can’t yet afford) someone full-time in the role. Fractional CFOs typically work a few days a week or month, either on a retainer or project basis.

For UK startups, scaling SMEs, and founder-led businesses, this flexible model offers strategic firepower at a fraction of the cost.

The Role a Fractional CFO Should Play

A good fractional CFO should go far beyond accounting. You're hiring for strategic clarity, not spreadsheets.

Here’s what a skilled fractional CFO should handle:

• Financial planning and forecasting – Develop long-range financial models and budget planning aligned to business goals

• Cash flow and runway management – Help optimise burn and maintain healthy liquidity

• Funding support – Prepare investor decks, manage due diligence, and advise on equity vs debt strategy

• Performance metrics – Define KPIs and build dashboards for better decision-making

• System & process optimisation – Overhaul finance operations, implement tools, and improve reporting

• Board and investor communication – Translate finance into strategy for stakeholders

• Hiring and team oversight – Help hire or manage finance staff as you scale

This role sits at the intersection of finance, strategy, and leadership — and it requires a CFO who’s more than just a spreadsheet wizard.

What to Look for in a Fractional CFO

When assessing candidates, don’t just go by their CV. Here are key traits and qualifications that matter most:

1. Strategic Experience at Your Stage

A CFO who scaled a company from £5M to £50M in revenue may not be a good fit if you’re at £500K and pre-product-market fit. Look for someone with relevant stage experience, especially:

• Fundraising or bootstrapped growth (depending on your path)

• Prior work with similar business models (e.g. SaaS, eCommerce, services)

• Familiarity with your sector or niche challenges

2. Clarity Over Complexity

Your CFO should simplify decision-making, not bury it in jargon. You want someone who communicates financial concepts clearly to non-financial founders and teams.

Test this in your first call: Can they explain what matters in 3 minutes without sounding like a textbook?

3. Track Record of Impact

Ask for case studies or specific examples. A strong fractional CFO should be able to show:

• How they improved a company’s margins or cash position

• How they helped raise funds or improve investor confidence

• What systems or reporting improvements they implemented

Results matter more than credentials.

4. Hands-On But High-Level

Look for someone who’s not afraid to roll up their sleeves, but who also knows when to delegate. They should be comfortable operating solo or managing junior finance staff — and they should be able to switch between execution and strategy.

5. Cultural Fit with Your Team

This is someone who’ll be in the room for critical business decisions. Make sure they’re a match for your leadership style, pace, and values.

Ask yourself:

• Can they challenge me constructively?

• Do they “get” the founder mindset?

• Will they integrate well with the wider team?
  

6. Flexibility and Scalability

A good fractional CFO grows with you. Look for someone who:

• Can scale their time as your needs increase

• Is open to longer-term engagements or more hours as you grow

• Offers flexibility during sprints like fundraising or audits

Questions to Ask Before You Hire

To make your shortlisting easier, here are questions to ask during your interviews:

• What kind of businesses have you worked with at this stage?

• How do you typically onboard with a new client?

• Can you walk me through a time you helped a company raise funding?

• How do you approach forecasting and cash flow management?

• What KPIs do you usually track in businesses like mine?

• How do you communicate with founders and teams that aren’t finance-savvy?

The goal isn’t just to tick boxes — it’s to understand how they think and how they’ll help you think more clearly about your business.

Red Flags to Avoid

Even seasoned finance professionals may not be right for your company. Watch out for:

• Overly corporate CFOs – People from big companies who may not thrive in startup chaos

• All talk, no delivery – Smooth speakers without substance or clear past results

• Rigid availability – Someone unwilling to flex time or intensity when needed

• Lack of tools knowledge – No familiarity with platforms like Xero, QuickBooks, Float, or your systems

• Too focused on cost-cutting – Strategic growth needs more than belt-tightening

The wrong hire can cost more than no hire at all.

Conclusion: Make Your CFO Decision Count

Hiring a fractional CFO is a turning point — it signals your business is ready to think like a company, not just a scrappy startup.

A great CFO won’t just balance your books — they’ll help you balance your ambition with your runway, your product with your performance metrics, and your team’s decisions with financial clarity.

Take your time, ask the right questions, and find someone who’s not just financially smart, but strategically aligned with your growth.