When Does a Startup Need a Fractional CFO?
When the financial questions you ask yourself change. Early on, the questions are simple. How much did we spend? What’s in the bank? Are we tracking expenses correctly? A bookkeeper handles these.
At some point the questions shift. How long until we need to raise again? What happens to runway if we hire three engineers? Should we take that contract at a lower margin to land the logo? Can we afford to wait six months for better terms? These need a fractional CFO.
Specific triggers that signal it’s time:
- 1. You’re raising a round and need projections that hold up under scrutiny.
- 2. Investors or board members expect financial reporting you don’t know how to build.
- 3. You’re making a big bet and need someone to model the outcomes 4.
- 4. Cash flow is getting complicated enough that you’re worried about surprises.
- 5. You’re spending hours trying to answer finance questions yourself when you should be running the company..
A full-time CFO costs $200K or more. Most startups can’t justify that until Series B or later. Fractional gets you the expertise at a fraction of the cost, scaled to what you actually need.
One caveat. A fractional CFO is only useful if your books are clean. Strategic finance work requires accurate data. If your monthly close is a mess, start with bookkeeping. Get the foundation right, then layer on CFO support when the questions demand it.
Utah's Trusted Bookkeeping Firm
First Step:
Start With a Call
Tell us what's going on and we'll let you know if we can help. We'll ask a few questions and give you a straightforward quote.
More Questions
How much should a fractional CFO charge?
Most fractional CFOs charge $150 to $400 per hour, or $2,000 to $8,000 per month on retainer. The actual cost depends on scope of work, company complexity, and the CFO's experience level.
Read answerHow to prepare financial statements for investors?
Clean books come first. Investors expect accrual-based statements with at least 24 months of history, consistent categorization, and defensible revenue recognition. The underlying data quality matters more than the format.
Read answerWhat is a good burn rate for a startup?
A good burn rate gives you 18 to 24 months of runway to reach your next milestone. The actual dollar amount depends on your stage, growth rate, and what you need to prove before raising again.
Read answerWhat are the biggest mistakes startups make?
Most startup failures trace back to financial blind spots. Founders mix personal and business money, ignore bookkeeping until investors ask, and don't know their real runway until it's too late.
Read answerDoes My Startup Need a Bookkeeper or a Fractional CFO?
Bookkeeper first. CFO later. A bookkeeper keeps your records accurate. A CFO helps you make decisions with those records. You need the first before the second is useful.
Read answerWhat do VC investors look for?
VCs look for a strong team, large market opportunity, proven traction, and defensible business model. Clean financials and solid unit economics often separate companies that close funding from those that don't.
Read answer