When Does a Business Need a Fractional CFO?

Every business reaches a point where good bookkeeping and basic financial reporting are no longer enough. Growth brings complexity — more moving parts, greater stakeholder expectations, and decisions that carry bigger financial consequences. That’s often when the question arises:

Do we need a CFO?

For many growing businesses, the answer isn’t necessarily a full-time hire. Instead, a fractional CFO — a part-time, high-impact finance leader — can provide the strategic support needed without the overhead of a permanent executive.

What Is a Fractional CFO?

A fractional CFO (also called a part-time or outsourced CFO) is a senior finance professional who works with your business on a flexible basis — anywhere from a few days a month to a couple of days a week.

They bring the experience and strategic perspective of a full-time CFO, but are engaged for specific outcomes, projects, or a defined time period.

Signs You Might Need a Fractional CFO

Here are some common scenarios where businesses benefit from fractional CFO support:

1. You’re Growing Quickly — But Finance Can’t Keep Up

Scaling teams, entering new markets, or expanding product lines all create complexity. A fractional CFO helps you put the right financial infrastructure in place: forecasting, reporting, cash flow control, and scenario planning that align with your growth.

2. You’re Raising Capital or Seeking Funding

Whether it’s equity, debt, or government funding, a CFO helps prepare your business for scrutiny. This includes refining your financial model, articulating your value proposition, and managing investor or lender due diligence.

3. You Need to Strengthen Financial Governance

As businesses grow, they often outpace their internal processes. If your team is still approving payments via email and building forecasts in isolated spreadsheets, a CFO can bring structure — implementing policies, delegations of authority, and internal controls that support scale and reduce risk.

4. You’re Running a Major Project or CapEx Program

From infrastructure builds to system implementations, capital projects need financial oversight. A fractional CFO ensures budgeting discipline, clear reporting, and accountability, while freeing up operational teams to focus on delivery.

5. Your Business Has Outgrown the Bookkeeper/Accountant Model

There’s a big difference between recording transactions and using financial information to make decisions. If your current finance function focuses on compliance and tax, but not strategic insights, a CFO can elevate the conversation — turning numbers into action.

6. You Want Finance to Help Drive the Business, Not Just Report on It

Modern finance leaders don’t just report on history — they help shape the future. A fractional CFO works closely with your executive team to align financial decisions with strategic goals, manage performance, and keep the business on track.

Why It Makes Sense for Many Businesses

A fractional CFO offers an attractive balance of expertise, flexibility, and cost-efficiency. You get:

• Senior-level thinking without a full-time salary

• External perspective rooted in experience across industries

• Support that flexes with your business needs

Whether you’re preparing for growth, improving internal reporting, or navigating complexity, a fractional CFO could be the missing piece in your leadership team.

At Prerad Advisory, we provide fractional CFO services tailored to growth-focused businesses, project-led organisations, and founder-led enterprises that need structure, strategy, and senior financial capability.

If your business is approaching a turning point, or if you simply want to explore whether a fractional CFO is right for you — we’d love to chat.