INSIGHT

Why Companies Are Shifting to Fractional CFOs 

Brenda Rose • October 30, 2025

Services: CFO Services

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Companies today face a dilemma: they need senior financial leadership to facilitate growth, build great teams and processes, give visibility to investors, or navigate hardship.  But the cost and commitment of a full-time executive don’t always make sense. A full-time CFO typically commands a salary between $300,000 and $500,000 annually, plus benefits, equity, and overhead. For many businesses, that’s simply too much too soon. 

6 Reasons Companies Are Shifting to Fractional CFOs 

Fractional CFOs are changing the game. They deliver the same strategic oversight and financial planning that full-time CFOs provide, but on a flexible, part-time basis. This shift isn’t just a trend. It reflects a fundamental change in how companies approach growth, cost management, and financial leadership. This article explores why more businesses are choosing fractional CFOs and what’s driving this rapid adoption. 

1. The Cost Equation Has Changed 

Money talks, and the numbers tell a clear story. Hiring a fractional CFO typically costs between $3,000 and $15,000 per month, depending on the scope of work. Compare that to the $25,000+ monthly cost of a full-time CFO, and the savings become obvious.  

But this isn’t just about cutting costs. Companies gain access to high-level financial strategy without the long-term commitment. They get a highly skilled CFO when it counts the most, and they pay only for the hours they need. The skillset a company needs during periods of change and transition is often not the same as what they will need on a long-term permanent basis — so it pays off to use a fractional specialist during the startup phase or critical junctures.  A startup preparing for Series A funding might need 30 hours per month. A stable mid-market company might need just 10 hours for quarterly planning and board reporting. A newly acquired private equity portfolio company might need more. 

“During points of inflection and change, it’s imperative to have an experienced CFO providing full visibility to stakeholders and guiding decisions on hiring cadence, timing of system implementations, and the establishment of sound policies and procedures. A fractional CFO also helps identify key operational metrics and efficiencies that can translate into millions of dollars in cost savings. The investment in a fractional CFO often multiplies back in both measurable ROI and invaluable peace of mind.” – Brenda Rose – Managing Director, Advisory 

This flexibility allows businesses to allocate resources where they matter most. Instead of locking in a full-time salary, companies can invest in building infrastructure, new technology systems, product development or marketing while still maintaining strong financial oversight.  

2. Business Needs Are No Longer Static 

Your company doesn’t grow in a straight line. Revenue fluctuates. Market conditions shift. Strategic priorities change quarter to quarter. A full-time CFO represents a fixed cost in a variable world.  

Fractional CFOs scale with your business. During a fundraising round, you might need intensive support for financial modeling, due diligence preparation, and investor presentations. Once funding closes, those needs decrease. A fractional CFO can ramp up during critical periods and dial back when things stabilize. 

Seasonal businesses benefit enormously from this model. An e-commerce company might need heavy financial planning before Q4, then lighter support in January and February. A fractional CFO provides the right level of involvement at the right time, without paying for unused capacity. 

3. The Talent Pool Has Expanded 

Geography no longer limits your options. The rise of remote work means companies can now access top financial talent from anywhere. You’re not restricted to CFOs in your city or region. You can find someone with specific industry experience, whether that’s SaaS, manufacturing, healthcare, or professional services. And most often, a remote fractional CFO can come onsite initially to get acquainted with the team. 

This expanded talent pool also means faster placement. Recruiting a full-time CFO can take months. Fractional CFOs can often start within weeks, sometimes days. When you’re navigating a cash flow crisis, preparing for an audit, or closing a major deal, speed matters. 

4. CFO Turnover Is Driving Demand 

According to HealthLeaders Media, CFO turnover hit a three-year high of 22% in 2024. Leadership gaps create operational chaos. Financial reporting stalls. Strategic planning loses momentum. Board confidence wavers. 

Companies can’t afford long recruitment cycles when financial leadership disappears overnight. Fractional CFOs step in immediately to stabilize operations. They maintain continuity during transitions, keep reporting on track, and ensure nothing falls through the cracks while you search for a permanent hire. 

Some companies discover they prefer the fractional model permanently. Why commit to a full-time role when a fractional arrangement delivers everything you need? 

5. Engagements Drive Real Impact 

Critics sometimes dismiss fractional CFOs as short-term band-aids. The data shows otherwise. According to the 2024 State of Fractional Industry Report, nearly half of fractional CFO engagements last between one and two years. Another 42% run for several months. These aren’t quick fixes. They’re meaningful partnerships that drive measurable results. And given the high level of expertise a fractional CFO brings, it’s like having a strategic advisor on hand to help lay down the red carpet for a future permanent CFO. 

A fractional CFO has time to understand your business model, identify inefficiencies, build financial systems, and implement strategic initiatives. They work alongside your team long enough to create lasting change, not just generate reports. 

6. The Market Is Booming 

Demand for fractional CFOs has doubled in just two years. According to Business Talent Group, requests for interim CFOs have surged 310% since 2020. These aren’t isolated statistics. They reflect a massive shift in how businesses think about financial leadership. 

The finance and accounting outsourcing market is projected to reach $76 billion by 2033. This growth stems from companies realizing they can access world-class financial guidance without the constraints of traditional employment models. 

Ready to Explore Fractional CFO Services? 

At BPM, we understand that every company’s financial leadership needs are different. Our fractional CFO services give you access to seasoned financial professionals who integrate seamlessly with your team. Whether you need help with strategic planning, an unexpected departure of your CFO, M&A, fundraising preparation, financial system implementation, or investor reporting, we tailor our approach to match your goals and budget. 

We’ve helped startups prepare for funding rounds, mid-market companies navigate complex acquisitions, and growing businesses build scalable financial operations. Our fractional CFOs bring real-world experience across industries and business stages, delivering the insights you need to make confident decisions. To find out more about how a fractional CFO can transform your financial operations, contact us.