Introduction

Imagine this: your business is scaling fast. You need strong financial leadership, strategic forecasts, and investor-ready reporting—but hiring a full-time CFO feels financially out of reach.

This is a common dilemma. Do you commit to a permanent executive hire or bring in a seasoned expert on a part-time basis?

In this blog, we’ll compare the real-world costs, flexibility, and impact of hiring a full-time CFO versus a fractional CFO. You’ll walk away knowing which option fits your business stage, budget, and goals.

What’s the Difference Between Full-Time and Fractional CFOs?

Both roles serve the same core purpose: guiding your financial strategy, managing risks, and enabling growth. But they operate in very different ways.

A full-time CFO is a permanent member of your executive team, typically embedded in your company. They oversee the finance function end-to-end, manage internal teams, and report directly to the CEO or board.

A fractional CFO offers the same strategic value—but on a flexible basis. They may work one or two days a week or on specific high-impact projects like fundraising, forecasting, or cash flow optimisation. They’re often brought in quickly and scale with your needs.

Breaking Down the Costs

Hiring a CFO isn’t just about salary. It includes benefits, bonuses, onboarding, and overhead. Here’s how the two models compare.

Full-Time CFO Costs

A full-time CFO in the UK typically costs:

• £100,000 to £250,000 base salary per year

• 20–30% additional for benefits, pensions, bonuses, and employer taxes

• £25,000–£50,000 in overhead including recruitment, onboarding, tech, and office space

• Time to impact: usually 3–6 months to fully integrate and deliver strategic outcomes

In total, a full-time CFO can cost upwards of £150,000–£325,000 annually depending on the size and complexity of your business.

Fractional CFO Costs

Fractional CFOs provide similar strategic guidance—but at a fraction of the cost. Typical cost structure:

• Monthly retainers of £2,500 to £8,000, depending on hours and scope

• Hourly rates range from £200 to £400

• Annual cost: between £36,000 and £90,000 for most SME and scale-up clients

• Time to impact: 2–4 weeks from engagement to full value delivery

Because they’re not full-time employees, you avoid paying benefits, equity, or long-term liabilities. You pay only for what you need, when you need it.

Why the Cost Gap Exists

The cost gap isn’t just about hours—it’s about flexibility.

Full-time CFOs are long-term investments. They’re best suited for complex, established operations where constant financial oversight is needed.

Fractional CFOs are high-impact specialists. They come in when it matters most—during growth, fundraising, or operational upgrades. Their cost reflects the fact that they work across multiple clients, and you’re buying deep experience without the burden of employment.

When Should You Choose Each Model?

Choosing between full-time and fractional CFO support depends on a few key factors: your growth stage, your financial needs, and your budget.

Here’s a practical comparison to guide your decision.

The UK Trend Toward Fractional CFOs

Across the UK, especially in hubs like London and Manchester, more companies are embracing flexible leadership.

Between 2022 and 2024, LinkedIn saw a surge in fractional CFO listings. Why? Founders want expertise without excessive overhead. Investors want clarity without bloated burn. And growing teams want fast results without months of recruiting.

This model is especially powerful for startups, scale-ups, and private equity-backed firms that need agility in leadership without compromising financial control.

Conclusion

Hiring a CFO is one of the most critical decisions for a growing business. But the traditional full-time model isn’t always the best path forward—especially if you’re scaling, raising funds, or navigating cash flow challenges.

A fractional CFO can deliver strategic impact, financial confidence, and investor readiness—at a cost that aligns with your growth stage.

If you're ready to explore fractional CFO support that fits your business and budget, Fractional CFO Services offers expert leadership tailored to your needs.