What to consider before you hire a part-time CFO

A part-time chief financial officer (CFO) can help you navigate complex financial challenges—without the hefty price tag of a full-time executive. 

But before you start screening candidates, here’s what you should know about the range of skill sets these professionals offer, how much they cost, and how to find one that matches your needs.

Hire the type of CFO you need

Part-time CFOs come from a wide range of backgrounds, and their areas of expertise can vary significantly. As a result, it’s essential to determine what you need from someone in a contract CFO role before you start considering options.

For example, early-stage startups often need a financial expert who can support fundraising efforts, develop financial models, and manage investor communications. 

In contrast, more mature businesses may need someone who can oversee financial reporting or implement internal controls.

Before meeting with candidates, assess your business’s most urgent financial management needs. Defining your priorities will help you identify providers with the right skill set and ensure you’re making a hire that can drive long-term value.

How much does a part-time CFO cost?

Part-time CFO services typically cost between $200 and $400 per hour, depending on their experience and specialization. 

For context, early-stage startups and growing businesses often need 15 to 25 hours of support per month. Assuming an average rate of $300 per hour, that amounts to a fractional CFO cost of $4,500 to $7,500.

Some providers also offer flat-rate pricing for a defined scope of work, which can help make expenses more predictable. For example, Zeni’s fractional CFO services start at $1,350 per month, with actual pricing based on your company’s monthly expenses.

What do you need your CFO to do?

A fractional, virtual, or interim CFO can add value in many areas, but their expertise should match your company’s most pressing priorities. Let’s explore some of their most common services to help you determine where your business need is greatest.

Strategy and modeling

One of the most valuable ways virtual CFO services can contribute to your business is through financial modeling. 

By projecting potential performance outcomes, referred to as scenario planning, CFOs can estimate the impact of strategic decisions, helping you anticipate potential challenges and allocate resources efficiently.

For example, financial modeling can help you make better-informed choices about:

• Hiring efforts: Determine when best to expand your team, which roles to prioritize, and how many new employees you can support without overextending.
• Growth initiatives: Estimate the short- and long-term implications of marketing campaigns or product launches so you can maximize your return on investment (ROI).
• Fundraising timelines: Project your monthly cash burn and runway to determine the ideal timing for your next funding round.

Similarly, your CFO can help you define and track key performance indicators (KPIs) that align with your objectives as a startup founder or small business owner. 

Regularly reviewing these metrics enables you to spot trends early, address emerging issues, and adjust your risk management plans accordingly.

Cash flow management

Cash flow management is crucial for all businesses, but especially startups operating with limited resources. An experienced CFO can help ensure you have the liquidity you need to meet your obligations, avoid disruptions, and capitalize on growth opportunities.

This typically starts with building detailed cash flow forecasts that account for your recurring expenses, known one-time costs, and seasonal fluctuations in revenue. 

Armed with that, you can anticipate and proactively address potential shortfalls in advance, rather than reacting to them after the fact.

Beyond forecasting, a part-time CFO can also help you optimize your working capital. This might include negotiating more favorable payment terms with vendors, accelerating receivables, or improving inventory turnover. 

These kinds of improvements free up cash you can reinvest in growth or use as a cushion during periods of uncertainty.

In addition, a fractional CFO service can clean up your internal processes related to cash. That may involve tightening up expense approvals, standardizing your budget variance analysis, or helping your team adopt tools that improve visibility into spending. 

Not only does this reduce the risk of overspending, but it can also support better cash management across your organization.

Financial reporting and compliance

Accurate financial reporting is essential for making informed decisions and maintaining credibility with investors and lenders. A part-time CFO can help you establish reporting processes that ensure your financial statements are consistently on-time and accurate.

This often involves overseeing the preparation of your income statements, balance sheets, and cash flow statements, as well as implementing best practices for month-end close that help reduce errors and keep your records audit-ready.

As your reporting needs become more complex, compliance requirements often increase as well. A part-time CFO can help ensure your financials follow Generally Accepted Accounting Principles (GAAP) and support your tax filings. 

They can also coordinate with external accountants or auditors, reducing the risk of compliance gaps.

Beyond reporting and regulatory compliance, a fractional CFO may even be able to build customized dashboards or performance reports to improve visibility into your financial health. 

By putting the right solutions in place, they can make you better equipped to track your progress against your goals and make data-driven decisions.

Fundraising

Fundraising is one of the most crucial challenges in a startup’s business development. A part-time CFO can play a pivotal role in preparing your company for securing capital, guiding the process from start to finish, and helping you get the best possible terms.

This typically begins with preparing the financial statements and projections investors expect to see, as well as the supporting documentation and due diligence materials that ensure your financials hold up under scrutiny.

Beyond the numbers themselves, a CFO can help craft a compelling narrative around your financial information, highlighting key metrics such as revenue growth, gross margin, and customer acquisition costs.

A fractional CFO’s guidance can also extend to evaluating funding options, such as equity or convertible notes. By modeling the long-term impact of each one on ownership and strategic flexibility, they can help you choose the best fit for your business.

Many fractional CFOs can also assist with investor communications, term sheet negotiations, and post-fundraising strategic planning to ensure you deploy your capital effectively.

Common CFO hiring mistakes

Choosing a provider who’s misaligned with your needs is one of the easiest ways to undercut your fractional CFO benefits. 

Prioritize candidates with a track record in the areas where you need the most help, whether that’s fundraising, strategic financial planning, or cash flow management.

That said, there are other pitfalls to watch out for. Here are some of the most significant ones business owners make:

• Over-hiring for the role: If your needs are more on the level of bookkeeping or accounting, a freelance CFO may be more than you need. In those cases, bookkeeping services or a Certified Public Accountant may be a more cost-effective solution.
• Overlooking cultural fit: Financial expertise is essential, but don’t underestimate the importance of work style and communication. A CFO who integrates well with your team will be more effective.
• Failing to define goals: Without clear KPIs and deliverables, it’s difficult to measure progress or hold your CFO accountable. Consider establishing shared goals from the outset to ensure alignment and transparency.

Hire Zeni's part-time CFOs

The right outsourced CFO service can be invaluable, but to maximize the benefit of their financial leadership, they must be able to integrate with the rest of your financial operations.

That’s what sets Zeni apart. We combine bookkeeping, accounting, and dedicated CFO services under one roof, giving startups and small businesses the guidance they need without the overhead of building an in-house team. 

Our pricing is also transparent, fixed, and based on your monthly expenses, so you always know what to expect.

When you sign up for the Zeni CFO Plan, you’re paired with a dedicated CFO advisor who understands your industry and your specific goals. They’ll oversee all aspects of financial planning and analysis, including:

• Scenario modeling
• Cash flow forecasting
• Budget variance tracking
• Financial reporting
• Strategic guidance

Our AI-powered platform manages your day-to-day bookkeeping, bill pay, and employee reimbursements, freeing your CFO advisor to focus on adding real value. That means more meaningful insights, fewer gaps, and faster results.

Partner with Zeni for a comprehensive financial solution that can handle all your needs in one place.

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