If you’re running a business with a high annual revenue, you might feel the pressure to hire a “real” CFO. After all, isn’t a CFO what serious companies do once they start turning a decent profit? The truth is, not every growing business needs—or can afford—a dedicated full-time Chief Financial Officer. Below, we’ll explore why that is and how you can still get the strategic financial guidance you need, without breaking the bank.
1. The Cost Factor
A full-time CFO in the UK or Ireland can easily demand a six-figure salary. That’s before you factor in bonuses, stock options, pension contributions, and recruitment fees. For many businesses, this overhead can swallow a major portion of your profits or cash flow—money you could reinvest in marketing, product development, or new hires.
Budget Tip:
- If you’re on the fence, calculate how many new customers or sales you’d need to cover a full-time CFO’s salary and benefits. You might be surprised at how steep that requirement is compared to other potential investments.
2. You May Not Need Full-Time Hours
A CFO provides high-level strategy around cash flow forecasting, budgeting, and long-term financial planning. But if you’re still in the early stages of growth, you might not have enough complex financial tasks to warrant a CFO’s full attention. If your accounting is straightforward and you only need strategic insight a few days a month (or during certain busy periods), hiring someone full-time can mean paying for a lot of idle time.
Ask Yourself:
- “Do I need year-round, day-to-day financial oversight, or would a few intensive hours per week or month suffice?”
3. Complex Strategy vs. Simple Operations
Much of what smaller businesses need can be handled by a competent accountant or bookkeeper—especially when it comes to everyday financial tasks like reconciling accounts, processing payroll, and filing taxes. It’s only once you start seeking deeper analytics (e.g., advanced cash flow projections, investor relations, or multi-currency risk management) that you’d benefit from CFO-level expertise.
Reality Check:
- In many cases, a part-time or fractional CFO is enough to build those forecasts, set KPIs, and guide your decision-making process without the full-time salary drain.
4. Flexible Models: Fractional & Outsourced CFOs
One of the biggest misconceptions is that it’s either “full-time CFO” or “no CFO at all.” In reality, fractional and outsourced CFO services allow you to pay for financial leadership only when you need it. Whether it’s a few hours per week or a specific project—such as preparing for an investor pitch—you can customise the engagement to fit your budget and growth stage.
Benefits of Fractional/Outsourced Models:
- Cost-Effectiveness – Pay for the level of service you need, rather than a 40-hour-a-week executive.
- Scalability – As you grow, you can scale up the hours or scope, eventually moving to a full-time CFO once you truly need it.
- Expertise on Demand – Tap into seasoned financial expertise that would be cost-prohibitive to hire in-house.
5. Focusing on the Bigger Picture
A full-time CFO can mean one less role elsewhere—like a key salesperson or an operations manager who could multiply your revenue. By leveraging fractional CFO services, you still get strategic guidance without eating up your entire budget. That allows you to invest in other areas that might have a faster impact on growth, like your marketing funnel or product roadmap.
A Chief Financial Officer can certainly be a game-changer for large enterprises. But for many businesses, a full-time CFO often comes at too high a cost relative to the value gained. The good news is, you don’t have to go without financial leadership entirely. Fractional CFOs and outsourced finance teams offer flexible, cost-effective solutions that let you tap into big-picture strategy without blowing your budget.
Ready to explore the alternative?
Talk to our team today to learn more about or Fractional CFO Offerings. We can assess your financial needs and recommend the right scope of support. You’ll get the strategic insight of a top-tier CFO—only on the schedule (and budget) that makes sense for your growing business.
Contact a member of our team today to find out more about our Fractional CFO Offering.
