Fractional CFO cost is shaped by five things, and these three carry most of the weight: the scope of the work, how often we meet, and the records the work starts from. Because we size the arrangement to the business, it can grow or ease back as your needs change.
This guide explains each factor and shows where the value tends to appear. Your own figure comes in a written proposal, because we scope every engagement to the business in front of us. Momenti Strategy works with owner-managed companies across the Wichita area. Below, we explain how we scope fractional CFO services.
Which factors shape the cost of a fractional CFO?
Five things set the size and length of an engagement. We talk through each one together before a figure goes on paper.
| Factor | What it covers | What moves it |
|---|---|---|
| Scope of the work | The goals named in your engagement letter, such as a tracked budget, a pricing review, or a plan a lender can read | How many goals there are, and how far along each one already is |
| The records we start from | Generally two years of statements, loan documents, and reports | How much is already up to date, and how much we gather together |
| How often we meet | A regular working meeting, plus the preparation behind it | How often decisions come up, and how much each meeting needs |
| Who else is involved | Your bookkeeper, your CPA, and sometimes your attorney | How many people contribute numbers, and how the work is shared |
| One question or ongoing support | A single project with an end date, or support that continues month to month | Whether the need is one decision or a standing role |
Scope carries the most weight. An engagement can include budget review and creation, financial scenario planning, and a look at pricing. It can also support a business plan when you are seeking financing. The Federal Reserve’s Small Business Credit Survey shows how common that search is among smaller firms. Few businesses need all of these at once, so the first job is choosing which ones matter this year.
Your records come next. When the books are current, the work can begin with planning. When some of them need attention first, that is common, and bookkeeping services usually come ahead of the planning. For what to keep, the IRS recordkeeping guide is a helpful reference.
The last two factors are about rhythm and people. Our fractional CFO engagements run on a regular working meeting, so actions keep moving between sessions. During a loan application, for example, you may want that meeting more often for a while. Once an engagement begins, we also ask to meet your bookkeeper, your CPA, and anyone else who works with the numbers.
Together, these factors explain why the figure can vary from one business to the next.
Is a single project or ongoing support the better place to begin?
Both are common starting points, and the right one depends on the question you are trying to answer.
A project has a defined scope and a defined end. Expense analysis is one example. Once the statements are in hand, the analysis generally takes about five to seven business days. An accounts receivable and payable assessment is another, and its analysis usually runs seven to fourteen business days. Both ranges move with the amount of information and how available it is.
Ongoing support works differently. It is a monthly arrangement built around goals we agree on at the start, and we review the scope with you as those goals change. As a result, it suits a business that faces a steady run of decisions rather than a single one.
Some owners start with one project and add ongoing support later, and others only ever need the project. For a question that fits neither shape, financial consulting is the place to begin.
How does a business get an actual figure?
Your figure comes out of four steps, and reaching it costs nothing.
- You get in touch, and we send a brief Discovery Form.
- We meet for a no-obligation Discovery Meeting of about 45 to 60 minutes.
- A proposal and an engagement letter arrive together, usually within three to five business days.
- You see the scope, the timing, and the cost in writing before any work begins.
In the Discovery Meeting, we talk about where the business is now and where you would like it to go. There is nothing to sign and nothing to decide in that meeting. We learn how current the records are from the Discovery Form and from that conversation, so nothing needs to change hands before you see a figure. Afterward, you can take as long as you need with the proposal.
You can read our full process for the stages that follow. Meanwhile, your financial information stays confidential throughout, which is a core promise at every stage.
How does that compare with hiring a full-time CFO?
A full-time chief financial officer is a salaried executive, and the cost reaches well past the salary. Benefits, payroll taxes, and the time spent recruiting all belong in the comparison. In addition, the business needs a full week of executive finance work to fill.
Many owner-managed companies are still growing toward that point. A fractional CFO, sometimes called a part-time CFO, brings the same kind of thinking for the portion of time the business can use. That is what we mean by financial leadership without the cost of a full-time hire.
For the basics of the role, see our guide to what a fractional CFO does. For a closer look at the two arrangements, see our comparison of a fractional CFO and a full-time CFO.
Where does the value tend to show up?
Results depend on the business, so we describe the value by where it usually appears. Four places are worth watching.
- Receivables. Customers tend to pay sooner when invoices go out on time and someone follows up. That can shorten the wait between doing the work and having the cash.
- Debt. A debt evaluation and payoff strategy lays out each balance and its terms, so interest can come down where the numbers allow it.
- Spending. A close look at two years of statements often turns up an old subscription still billing, or a cost that has crept upward.
- Decisions. You can test a hire, a lease, or a price change against the numbers before you commit.
Juli McClure founded Momenti Strategy after leading this kind of work from the inside, as president of a small business. You can read more about that background and what it produced.
With ongoing support, we report progress each month against the goals we set together. Because of that, progress becomes something you can see and ask about as the year goes on.
Which questions help you weigh the cost?
A few questions can make this decision clearer.
- Which decision this year would be easier with clearer numbers?
- Is a loan, a large purchase, or a new hire coming that the numbers will need to support?
- How many hours each month does the financial work take from you now?
- Would a single project answer the question, or does it keep returning in a new form?
If one of those has a clear answer, you have something concrete to weigh the cost against. If none does yet, that is useful to know as well. In that case, the U.S. Small Business Administration offers a plain guide to managing business finances. If you are still deciding whether the role fits at all, our list of seven signs it may be time is a better starting point.
Frequently Asked Questions
How much does a fractional CFO cost for a small business?
It depends on the work, so no single figure fits every business. Scope has the largest effect, followed by the state of the records and how often we meet. Your own number arrives in a written proposal, usually within three to five business days of a Discovery Meeting. You will see it before any work begins.
Is fractional CFO work a single project or an ongoing arrangement?
It can be either. A project such as an expense analysis or a budget build has a defined scope and a defined end. Ongoing fractional CFO support is a monthly arrangement built around goals we agree on together. Your proposal sets out which one applies and what it includes, so you can weigh it before any work begins.
Will I know the full cost before any work begins?
Yes. A proposal and an engagement letter arrive together after the Discovery Meeting, and they set out the scope, the timing, and the cost in writing. Work begins only after you have signed. If the scope needs to change later, we talk it through with you first and update the agreement together.
Does it cost more if my books are behind?
It can, because planning depends on current records, and bringing them up to date is work in its own right. That situation is common, and it is simple to plan for. In most cases bookkeeping comes first, and the planning follows once the numbers are reliable. We will tell you plainly which order makes sense.
Is a fractional CFO less expensive than hiring a full-time CFO?
In most cases, yes, because the cost follows the scope of work you agree to, while a full-time role carries a full executive salary with benefits. Fit is the better comparison, though. A company with a finance team to lead each day may need the full-time role. Many owner-managed businesses do well with part-time support.
Ready to Build Financial Momentum?
A conversation is the simplest way to find out what this would cost for your business. Share what you are working toward, and we will lay out together what the work would involve.
Book a Discovery Meeting online or call 316-617-7178.