Published: January 2026
You have heard the term. Maybe your accountant suggested it. Maybe a business advisor mentioned you need "CFO-level thinking." But what does a fractional CFO actually do, and how do you know if you need one?
The short answer: a fractional CFO is a senior financial executive who works with your business part-time, providing strategic financial leadership without the cost of a full-time hire.
But that definition only scratches the surface. This guide explains what fractional CFOs do, what they do not do, and when engaging one makes sense for your business.
The term "fractional" simply means part-time or shared. Instead of hiring a CFO who works 40 hours a week for your business alone, you engage someone who works with you for a set number of hours or days per month.
This might be one day a week, a few days a month, or just a handful of hours for specific projects. The arrangement flexes based on your needs.
The same person typically works with multiple businesses, bringing experience from across different companies and industries. This breadth of exposure is often an advantage: they have seen what works and what does not across many contexts.
A fractional CFO focuses on strategic financial leadership. Their core activities typically include:
- Financial strategy and planning. Developing budgets, forecasts, and long-term financial plans. Helping you understand what the numbers say about where your business is heading.
- Cash flow optimisation. Analysing cash flow patterns, identifying improvement opportunities, and ensuring you have visibility into future cash positions. This is often the most immediately valuable work.
- Scenario modelling. Building financial models to evaluate major decisions. What happens if you hire five people? Open a new location? Raise prices by 10%? A fractional CFO helps you think through the numbers before you commit.
- KPI development and tracking. Identifying the metrics that matter for your business and establishing systems to track them. Moving from gut feel to data-driven decision making.
- Investor and board support. Preparing financial materials for investors, lenders, or boards. Presenting financials in a way that builds confidence. Helping with due diligence processes.
- Fundraising support. If you are raising capital, a fractional CFO can help prepare financial models, pitch materials, and data rooms. They can also help you understand what investors will expect to see.
- Profitability analysis. Understanding which products, services, clients, or channels are actually making money. Many businesses are surprised by what they find.
- Risk management. Identifying financial risks and developing strategies to mitigate them. This includes everything from customer concentration to currency exposure to compliance risks.
- Financial controls. Ensuring appropriate controls are in place to prevent fraud and errors. This becomes increasingly important as businesses grow.
- Mentoring. If you have junior finance staff, a fractional CFO can provide guidance and development support, lifting the capability of your team.
It is equally important to understand what falls outside the typical fractional CFO scope:
- Day-to-day bookkeeping. Transaction processing, bank reconciliations, and accounts payable are not CFO work. You need a bookkeeper or embedded finance support for this.
- Tax returns. Annual tax compliance is accountant territory. A CFO may work with your accountant on tax planning, but they are not preparing your returns.
- Payroll processing. Running payroll each period is operational, not strategic.
- BAS preparation. This is bookkeeping and compliance work, not CFO work.
- Audit. If you need an audit, you need an auditor.
The general principle: a CFO focuses on forward-looking strategy and decision support. Backward-looking compliance and transaction processing belong elsewhere.
Some fractional CFOs or their firms offer broader services that include operational finance, but the CFO role specifically is about strategic leadership.
Consider engaging a fractional CFO when:
1. You are preparing for investment or sale. Investors and buyers expect financial rigour. A fractional CFO helps you present your business credibly and navigate due diligence.
2. You are experiencing rapid growth. Growth creates complexity. Cash flow becomes harder to manage. Decisions have bigger consequences. You need someone thinking strategically about the financial implications.
3. You are making major decisions. Significant hires, new locations, acquisitions, or major investments benefit from proper financial analysis before you commit.
4. You lack financial visibility. If you do not have a clear picture of profitability, cash flow, or the key drivers of your business, a fractional CFO can help you see clearly.
5. You are confused about your numbers. Many founders struggle to translate financial reports into actionable insights. A CFO bridges that gap.
6. Your accountant only appears at tax time. If you are not getting ongoing strategic financial guidance, there is a gap that a fractional CFO can fill.
7. You are the de facto CFO and should not be. If you are the founder and you are spending significant time on financial strategy, you might benefit from handing that to someone with deeper expertise so you can focus on other priorities.
A fractional CFO is probably premature if:
1. You are very early stage. Pre-revenue or very early businesses usually need good bookkeeping more than CFO strategy.
2. Your business is simple and stable. If you have a straightforward business model, predictable cash flow, and no major decisions on the horizon, the value is limited.
3. You cannot act on advice. A CFO provides recommendations. If you are not in a position to implement changes, the advice has limited value.
4. Your bookkeeping is a mess. Fix the foundations first. A CFO needs reliable data to work with. If your books are not accurate, start there.
Fractional CFO pricing in Australia varies based on experience, scope, and engagement model:
1. Hourly rates: $150 to $400 per hour, with most experienced CFOs at $250 to $350.
2. Monthly retainers: $3,000 to $15,000 per month, depending on the scope and hours involved.
3. Project fees: $5,000 to $50,000 for specific projects like fundraising preparation or financial model development.
For comparison, a full-time CFO salary in Australia typically ranges from $200,000 to $350,000 before super and oncosts. A fractional arrangement at $5,000 to $10,000 per month delivers senior expertise at a fraction of that cost.
The key is matching the engagement to your actual needs. You might only need a few hours per month for ongoing advisory, with more intensive support during specific projects.
To maximise the value of a fractional CFO:
- Be clear about what you need. The more specific you are about your challenges and goals, the more targeted the support can be.
- Provide access. A CFO needs access to your financial data, your team, and your thinking. The more they understand your business, the better their advice.
- Be responsive. When your CFO asks questions or requests information, respond promptly. Delays slow everything down.
- Act on recommendations. A CFO can analyse and advise, but you need to implement. If you are not going to act on advice, you are wasting money.
- Establish a rhythm. Regular check-ins (weekly or fortnightly) maintain momentum. Ad hoc engagement tends to be less effective.
- Use them as a thinking partner. Do not just ask for reports. Bring them into your decision-making process. "We are considering X, what do you think?" is exactly the right question.
Before engaging, consider asking:
An accountant focuses on compliance: tax returns, financial statements, and ensuring you meet legal obligations. A CFO focuses on strategy: using financial data to inform decisions, improve performance, and plan for the future. Most businesses need both.
This varies widely based on needs. Some engagements are 5 to 10 hours per month for ongoing advisory. Others are 20 to 40 hours during intensive periods like fundraising. The arrangement should match your actual needs.
Yes. Most fractional CFO work is done remotely, with periodic in-person meetings as needed. Cloud accounting systems and video conferencing make this practical for most businesses.
Yes. A CFO focuses on strategy, not transaction processing. You still need someone (internal or external) handling day-to-day bookkeeping. Some fractional CFO providers offer both services, but they are distinct roles.
The terms are often used interchangeably. "Fractional" refers to the part-time engagement model. "Virtual" refers to remote delivery. Many fractional CFOs work virtually.
Consider a full-time CFO when you need 30+ hours per week of CFO-level work, when you are preparing for IPO or major transactions, or when your business complexity requires dedicated focus. For most SMEs, fractional remains the better option.
Scale Suite offers fractional CFO services as part of our embedded finance model. This means you get strategic financial leadership integrated with operational support:
Our model combines CFO-level thinking with day-to-day operational support, so you do not have gaps between strategy and execution.
If you are wondering whether fractional CFO support would add value to your business, we are happy to discuss your situation. Contact us at hello@scalesuite.com.au or visit scalesuite.com.au.
This article provides general information about fractional CFO services. Individual circumstances vary, and you should consider your specific needs when evaluating options.
Scale Suite delivers embedded finance and human resource services for ambitious Australian businesses.Our Sydney-based team integrates with your daily operations through a shared platform, working like part of your internal staff but with senior-level expertise. From complete bookkeeping to strategic CFO insights, we deliver better outcomes than a single hire - without the recruitment risk, training time, or full-time salary commitment.
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