A fractional CFO, also called a virtual or outsourced CFO, is  an external professional who you can hire on an hourly or subscription basis. Outsourcing the work can help growing companies save time and money if they’re not ready to bring on a full-time CFO.

The chief financial officer (CFO) is the strategic and managerial head of finance, and they can be important partners for founders who don’t have a finance background. The CFO can set and review financial key performance indicators (KPIs), implement best practices, create budgets and forecasts, and help the board and potential investors understand the company’s financial position. Afractional CFO does the same work, scoped to the hours your business needs.

Fractional CFO at a glance

Startups often don’t have the resources or the need to hire a full-time CFO. An outsourced CFO service can help you understand your company’s finances, create custom forecasts, or prepare a fundraising strategy with a limited or one-time engagement. 

When does an early-stage startup need a fractional CFO?

Most startups bring in a fractional CFO at one of these points:

• You're preparing to raise a round and need a financial model, a data room, and answers to investor questions.
• Your board or investors want regular reporting on burn, runway, and KPIs.
• You're deciding on hiring, pricing, or spend and need to see the impact before you commit.
• The person running operations is also managing finance, and the work has outgrown them.

Before you bring one in, make sure your books are current. A fractional CFO works from your financial statements, so clean monthly bookkeeping comes first. To check how much runway you have now, try the burn rate and runway calculator.

Who provides fractional CFO services for startups?

Founders usually choose between three options: an independent fractional CFO, a firm that supplies part-time CFOs, or a finance provider that pairs CFO work with bookkeeping and tax. The third keeps the books and the forecast in one place, so your CFO isn't working from someone else's numbers.

Pilot offers fractional CFO services for startups and small businesses alongside bookkeeping and tax. Pilot CFOs have helped close 350+ funding rounds, and Pilot CFO clients have raised more than $10 billion. Kompliant, for example, went from pre-product to a $14M seed with a Pilot CFO. Engagements come in three levels (Foundation, Strategic Support, and Embedded Partner) that you can move between as the company grows. See pricing for details.

Fractional CFO FAQs

How much does a fractional CFO cost?

It depends on hours, scope, and whether you pay hourly, monthly, or per project. Our fractional CFO cost guide breaks down typical pricing models and what drives the price.

Is a fractional CFO the same as an outsourced CFO?

Yes. The terms are used interchangeably, along with virtual CFO and part-time CFO. All describe a CFO who works with your company as a contractor or service rather than a full-time employee. See outsourced CFO for more.

Do I still need a bookkeeper if I hire a fractional CFO?

Usually, yes. A bookkeeper keeps transactions categorized and the books closed each month. A fractional CFO reads those books to forecast and advise, so the CFO's work is only as good as the bookkeeping under it.

When should a startup hire a fractional CFO?

Common triggers are a coming fundraise, board reporting, or decisions about hiring and spend that need a forecast. For a fuller list, see wh