A fractional CFO is an experienced Chief Financial Officer or Finance Director who works for your business part-time on an ongoing retainer, typically one to two days a week. They manage investor and lender relationships, present to the board, own the long-range financial model and challenge the CEO commercially, on the contracted days. A two-day fractional CFO in London typically costs £78,000–£132,000 a year, roughly half the all-in cost of a permanent CFO.
We want to be clear about how we work. Accountancy Capital specialises in qualified finance below director level: Financial Controllers, Finance Managers, management accountants and FP&A. CFO and FD searches are the core work of our sister firm FD Capital, and both are part of FD Capital Group. When a client asks us for a fractional CFO, we run the search jointly with FD Capital, while we place the fractional Financial Controllers and fractional Finance Managers who work beneath or alongside the CFO. That gives you one conversation about the whole part-time finance function rather than two recruiters with competing views.
Many businesses that search for a fractional CFO actually need a fractional FC first, or both. Much of this page is about helping you tell the difference.
What a fractional CFO does
A fractional CFO’s work faces outwards and forwards. Typical responsibilities include:
- managing relationships with investors, lenders and the board;
- building and owning the long-range financial model and funding plan;
- leading fundraising, refinancing and financial due diligence;
- presenting financial strategy and performance at board level;
- directing the finance team, including the FC; and
- providing commercial challenge on pricing, investment and growth decisions.
What a fractional CFO should not be doing is running the month-end close or reconciling the balance sheet. That is Financial Controller work, and a CFO on a CFO day rate spending their time on it is poor value. Our guide to what a fractional CFO does covers the role in more detail.
Fractional CFO or fractional Financial Controller?
This is the most useful question to answer before briefing anyone. The two roles are often confused, and getting it wrong is expensive in both directions: a CFO hired to fix unreliable numbers is overpaid and frustrated, and an FC asked to lead a fundraise is out of their depth.
The simplest test: a Financial Controller makes sure the numbers are right; a CFO decides what to do with them. If your management accounts are late, the balance sheet is not reconciled or the auditors keep raising the same points, you need control first. If your numbers are reliable but you need to raise money, manage investors or plan an exit, you need a CFO.
| If your main problem is… | You probably need |
|---|---|
| Late or unreliable management accounts | Fractional FC |
| A difficult year-end audit or weak controls | Fractional FC |
| Outgrowing a bookkeeper or bureau | Fractional FC or Finance Manager |
| Budgets, cash forecasting and KPI reporting | Fractional FC (two days) or Finance Manager |
| Raising equity or debt in the next 6–12 months | Fractional CFO |
| Investor or PE board reporting and covenant management | Fractional CFO, with an FC below |
| Exit planning or acquisitions | Fractional CFO |
Cost reinforces the point. A one-day fractional FC in London typically costs £29k–£39k a year, against £39k–£66k for a one-day fractional CFO. For many businesses of £2m–£10m revenue, the right first step is a fractional FC to get the numbers in order, with a CFO added later when there is a fundraise or a board to manage. Businesses with investors often need both: the CFO owns the strategy and the board, and the FC owns the close and the controls. See fractional FC rates UK for the full FC figures and Financial Controller vs CFO for the role differences.
Fractional CFO costs
Fractional CFO retainers vary widely with experience, sector and the complexity of the investor relationship. Typical annual ranges:
| Days per week | London | South East | Midlands and North |
|---|---|---|---|
| 1 day per week | £39k–£66k | £33k–£56k | £29k–£50k |
| 2 days per week | £78k–£132k | £66k–£112k | £59k–£100k |
| 3 days per week | £117k–£198k | £99k–£168k | £88k–£150k |
For comparison, a permanent CFO in London typically commands a base salary of around £130,000–£215,000. Add employer’s National Insurance, pension and benefits and the total first-year cost is often in the region of £160,000–£280,000. A two-day fractional CFO at £78,000–£132,000 is therefore roughly half the permanent cost, which is the case for the model where the CFO-level work genuinely fills two days rather than five. Our fractional CFO rates UK guide and the CFO salary guide have the detail.
CFO, FC or both? — 0204 553 8893
Tell us where your finance function is today. We will tell you honestly whether you need a fractional CFO, a fractional FC or both, and run the search with FD Capital where a CFO is right. Same working day response.
Three businesses that typically need a fractional CFO
Venture-backed technology and SaaS businesses before Series B. Investors expect CFO-level reporting, a maintained financial model and confident board presentation, often beyond what a Finance Manager or FC can provide at that standard. A fractional CFO at one to two days a week meets that expectation at a cost the business can sustain before profitability, usually with a fractional FC or Finance Manager running the day-to-day numbers.
Smaller PE-backed businesses. A private equity investor’s monitoring requirements, including monthly board packs, covenant tests and quarterly investor updates, can exceed what an FC can deliver alongside the close. The fractional CFO manages the investor relationship; the FC manages the operational finance function. Our page on fractional FCs for PE-backed businesses covers the FC side, and the BVCA publishes useful material on investor expectations.
Founder-led businesses preparing for a first institutional raise. A fractional CFO appointed several months before the raise can build an investor-grade model, manage financial due diligence and present the plan with credibility a founder acting as their own CFO may lack. Our guides to building an investor-ready reporting pack and when a business needs a fractional CFO go further.
How we run fractional CFO searches with FD Capital
The common approach to a fractional CFO brief is to approach CFOs between permanent roles who will take part-time work while they look. That can work for a few months, but the risk is that they leave when the permanent offer arrives, just as the business has invested in onboarding them and before the model and board reporting are where they need to be.
Our joint approach with FD Capital prioritises professionals who have chosen portfolio work as their main career, typically holding two or three client engagements at once and with no plans to return to a permanent role. They tend to have the rapid context-building and multi-client discipline the model requires, and they settle in faster. In practice:
- One brief, one conversation. You speak to Accountancy Capital; FD Capital’s CFO network is brought in behind the scenes, and we advise on the FC or Finance Manager layer at the same time.
- Scope check first. We confirm whether the days and budget you have in mind are realistic for the current market before the search begins.
- Speed. We respond the same working day, and for fractional and interim roles candidates typically follow within days.
- Clear terms. Fees are agreed in writing before a search starts.
Briefing a fractional CFO search
A good brief covers five things: business size and ownership, including whether you are PE-backed, VC-backed or owner-managed, and the investor relationship the CFO will manage; finance team structure, especially whether there is an FC below the CFO running the close or whether the CFO will be the most senior finance person; reporting requirements, such as the board pack, investor reporting cycle and model to be built or maintained; days per week, honestly assessed; and retainer budget. If there is no FC in place, expect us to ask whether the first hire should be an FC instead. Our guide to briefing a senior finance search that completes first time sets out the general framework.
Fractional CFO vs interim CFO
| Factor | Fractional CFO | Interim CFO |
|---|---|---|
| Days per week | 1–3, part-time and ongoing | 5, full-time and time-limited |
| Duration | Ongoing retainer, often a year or more | Typically 3–12 months |
| Other clients | Yes, a portfolio of engagements | No, full-time commitment |
| Best for | A genuine part-time CFO need | Urgent full-time gap cover |
| Typical cost (London) | £78k–£132k a year for two days | Typically £750–£1,300 a day |
See our interim vs fractional finance guide for the full comparison, and interim CFO recruitment for full-time cover. As with any off-payroll engagement, the IR35 rules need to be assessed before either starts.
Building the business case internally
The usual barrier to a fractional CFO is not the commercial logic but discomfort with a CFO who is not in the building every day. The most effective internal case does two things. First, it sets the retainer against the full-time employment cost. Second, it names the specific CFO-level work that is not getting done today: the long-range model nobody has built, investor reporting below the standard investors expect, the board pack that arrives weeks late. A fractional CFO appointed to deliver defined outcomes, rather than simply to be present, is much easier to justify and to measure. If the work on that list turns out to be mostly about closing the books and reconciling accounts, that is a sign the first hire should be a fractional FC.
For candidates
Finance Directors and CFOs working as, or moving into, fractional CFO roles are welcome to register; CFO-level profiles are shared with FD Capital so they are considered for the right briefs. Qualified Financial Controllers and Finance Managers building a portfolio career should register with us directly, as that is where most of our fractional placements happen. Our guide to becoming a fractional Financial Controller covers the move, and registration is confidential.
Frequently asked questions
How much does a fractional CFO cost per year?
For two days a week in London, typically £78,000–£132,000 a year; one day a week is typically £39,000–£66,000. Regional rates are lower.
Does Accountancy Capital recruit fractional CFOs itself?
We run fractional CFO searches jointly with our sister firm FD Capital, which specialises in CFO and FD appointments. We lead on the fractional FC, Finance Manager and accountant roles around the CFO.
Can a fractional FC do the job instead of a CFO?
Often, yes, if the need is reliable reporting, controls, budgets and cash forecasting. Not if the need is fundraising, investor management or exit planning.
What about a permanent CFO?
Once the CFO-level work fills the week, a permanent hire is usually better value. See CFO recruitment; permanent shortlists typically follow within one to two weeks.
How do I get started?
Call 0204 553 8893 or email recruitment@accountancycapital.co.uk. We have offices at 167–169 Great Portland Street, London W1W 5PF and Watling Court, Orbital Plaza, Watling Street, Cannock WS11 0EL.
Adrian Lawrence FCA — Founder, Accountancy Capital
Fellow of the ICAEW | Chartered Accountant holding an ICAEW practising certificate | Part of FD Capital Group
Adrian is a former listed-company Finance Director with a BSc from Queen Mary College, University of London, and founded FD Capital before Accountancy Capital. A frequent first conversation on a fractional CFO enquiry ends with the business hiring a fractional FC instead, because the real problem was the numbers rather than the strategy. Where a CFO is right, the two firms work the brief together.
Related Pages and Resources
Fractional CFO Guides
The role, the cost and the timing.
Choosing a Model
Fractional, interim or permanent.
→ Interim vs fractional finance
CFO Recruitment
Permanent and interim CFO hiring.
Fractional CFO and FC recruitment — 0204 553 8893
Fractional CFO searches run jointly with FD Capital; fractional FCs and Finance Managers placed directly. Same working day response, and fractional candidates typically within days.