What is a fractional CFO?

What does a fractional CFO do?

A fractional CFO does the same work as a full-time CFO but for a fraction of the hours. That typically includes producing and reviewing management accounts, cashflow forecasting, budget setting and variance analysis, financial strategy, KPI tracking, and advising on pricing, profitability, and growth decisions. They are not an accountant. An accountant records what happened. A CFO uses that information to help you decide what to do next.

What does it cost?

A fractional CFO in the UK typically charges between £500 and £2,000 per month for a small business, depending on the complexity and the number of days per month. A full-time CFO salary starts at around £80,000 and can exceed £150,000 for experienced candidates, plus employer costs. The fractional model gives you senior expertise at a manageable cost. It is the right choice for businesses that need financial direction but cannot justify a full-time hire.

When do you need one?

The signs are consistent: you are making decisions based on gut feel rather than data. Your cashflow surprises you. You do not know your margins, your break-even point, or how much cash you need to hold in reserve. You find out about financial problems after they have already caused damage. If any of that sounds familiar, you either need a fractional CFO or a tool that does the same job.

How CFO Pal compares

CFO Pal automates the reporting, monitoring, and alerting that makes up the bulk of a fractional CFO's workload. It generates your P&L, balance sheet, and cashflow forecast automatically. It tracks budgets, flags overdue invoices, monitors margins, and sends you a weekly summary every Monday morning. It does not replace human strategic advice, but it delivers the financial clarity and early warning system that most businesses hire a fractional CFO for, at a fraction of the cost.