Fractional CFO Recruitment

Fractional CFO Executive Search

Whether you are raising investment, improving cash flow, building board-ready reporting, or preparing for exit, a fractional CFO provides the senior financial leadership your business needs — without the cost or commitment of a full-time hire. Exec Capital recruits fractional CFOs for UK businesses across every growth stage. Every search is run by our specialist team, with Adrian Lawrence FCA overseeing each mandate.

A fractional CFO typically works one to three days per week, operating as part of your leadership team and providing the financial discipline, strategic insight, and investor-facing capability that growing businesses need. The fractional CFO is one part of our wider fractional C-suite practice, and this page is written for the founder, CEO, chair or investor deciding whether a fractional finance leader is the right answer and how to hire one well.

What Is a Fractional CFO?

A fractional CFO is an experienced Chief Financial Officer who works with your business on a part-time or defined-day basis rather than as a full-time employee. The engagement is typically structured around one to three days per week, giving your business board-level financial leadership at a fraction of the cost of a permanent appointment.

The role carries the same responsibilities as a full-time CFO: financial strategy, management reporting, cash flow management, investor relations, governance, and finance team leadership. The difference is that the fractional model makes senior financial expertise accessible to businesses that need CFO-level capability but cannot yet justify a full-time hire.

Fractional CFOs typically work with a portfolio of clients, bringing cross-sector experience from multiple business environments. This breadth of exposure — across different business models, growth stages, and investor types — is often more valuable than the narrower perspective of a career executive who has spent years in a single company.

What separates a fractional CFO from a bookkeeper, an outsourced accounts service or a management accountant is ownership. A fractional CFO is accountable for the financial direction of the business, not just the production of numbers. They sit in leadership meetings, challenge the plan, own the conversation with the bank and investors, and are the person the board turns to when it needs to know whether the business can afford a decision. The time commitment is part-time; the accountability is not.

“Adrian worked with us as our Fractional CFO for six months and we are genuinely grateful for the contribution he made. His financial expertise and calm, professional approach gave us confidence in our numbers and supported better decision-making across the business. I would recommend Adrian and Exec Capital without hesitation.” — Josh Haugh, MAS Technicae Group (International) Ltd, West Sussex

Fractional CFO, Outsourced CFO, and Part-Time CFO — What’s the Difference?

These terms describe closely related but distinct engagement models. Understanding the difference helps you choose the right structure for your business.

Exec Capital recruits across all four models and can advise on which best fits your current situation on your initial call.

Other ways to hire a CFO

This page covers the fractional model: a named CFO on a recurring weekly commitment who becomes part of your leadership team. If a smaller fixed number of days each month suits your budget better, see our part-time CFO service. If what you need is a hands-on finance lead to run the accounts, controls and month-end rather than a strategic CFO, a fractional finance director is often the better and more economical fit. Venture-backed founders hiring their first full-time finance leader should look at our startup CFO recruitment service, and private equity houses appointing a permanent CFO into a portfolio business should see portfolio company CFO recruitment. We run all of these searches, so if you are not sure which you need, tell us the problem and we will recommend the format.

Permanent, Interim, Fractional or Part-Time: Choosing the Right CFO Format

The right format depends less on the job title and more on three questions: how much CFO time the business genuinely needs each week, how long it needs it for, and whether the business can carry the fixed cost of a full-time executive. The table below sets out how we help clients think it through on the briefing call.

Formats are not fixed for ever. Many of our clients start with a fractional CFO, increase the days around a fundraise or sale, and later convert the role into a permanent hire once the business has grown into it. Equally, an interim CFO brought in for a crisis can step down to a fractional arrangement once the business has stabilised. We would rather recommend the format that fits than sell you a longer engagement than you need.

When Does a Business Need a Fractional CFO?

The decision to appoint a fractional CFO is typically triggered by one of several situations where experienced financial leadership is needed but a full-time hire is not yet the right answer.

Fundraising or investment readiness

Investors expect board-ready financial reporting, reliable forecasting models, and credible financial management. A fractional CFO prepares the business for fundraising — building investor materials, stress-testing financial models, and managing the financial due diligence process. Many businesses appoint a fractional CFO three to twelve months before a funding round specifically to professionalise the finance function before investor scrutiny begins.

Rapid growth creating financial complexity

Start-ups and scale-ups often reach a point where the financial complexity of the business outpaces the capability of the existing finance team. A fractional CFO introduces the reporting disciplines, cash flow management, and financial controls that allow the business to scale without losing financial visibility.

CFO departure or leadership gap

When a CFO leaves unexpectedly or gives notice, the business needs experienced financial leadership in place while a permanent replacement is found. A fractional CFO maintains continuity — managing the finance team, ensuring reporting continues to schedule, and preserving investor and lender confidence — without the time pressure of hiring a permanent appointment under duress.

Preparing for acquisition, refinancing, or exit

Exit preparation demands a higher standard of financial reporting, clean data rooms, and credible financial narratives. A fractional CFO with M&A and exit experience leads this process — managing advisers, preparing financial information, and supporting negotiations — typically working more intensively in the months leading up to a transaction. Our guide to exit-readiness executive hiring covers how buyers and investors look at the finance team before a sale.

Strengthening financial controls and governance

Businesses that have grown quickly often have financial processes that have not kept pace with scale. A fractional CFO audits existing controls, implements proper governance frameworks, and ensures the finance function meets the standards that investors, lenders, and boards require.

Lender pressure or a cash squeeze

When covenants tighten, a facility comes up for renewal or cash runs closer to the line than the board would like, a fractional CFO brings the thirteen-week cash forecast, the lender conversation and the cost discipline that a stretched in-house team often cannot provide on its own. Where the situation is acute and needs someone on site every day, we will usually recommend an interim CFO instead, with the option of stepping down to a fractional arrangement once the position is stable.

“Exec Capital has supported SBS Insurance Services over the past three years through the provision of a Fractional FD/CFO. Their expertise has made a significant difference in professionalising our finance function and delivering accurate, timely management information—exactly what our business needed to grow with confidence.” — Tracey Rees, COO, SBS Insurance Services Ltd

What a Fractional CFO Does

Strategic financial leadership

• Develop financial strategy aligned with business objectives
• Support leadership decision-making with clear financial insight
• Create financial models and long-term forecasts
• Provide commercial guidance on pricing, investment, and expansion

Financial reporting and control

• Improve management reporting accuracy and clarity
• Establish board-ready reporting packs and KPIs
• Strengthen financial controls and governance
• Ensure reliable forecasting and performance tracking

Cash flow and working capital

• Improve cash flow visibility and working capital management
• Identify opportunities to improve margins and efficiency
• Support cost optimisation and financial discipline
• Ensure financial stability during periods of growth or change

Fundraising, investment, and exit preparation

• Prepare financial models and investor materials
• Support fundraising and lender discussions
• Assist with due diligence and investment readiness
• Prepare businesses for acquisition, refinancing, or exit

Finance team leadership

• Lead and mentor finance teams
• Improve finance processes and systems
• Support recruitment and development of finance staff
• Build scalable finance functions aligned with growth

What a fractional CFO does not usually do

A fractional CFO is not a substitute for a bookkeeper or a month-end team. In most engagements the day-to-day processing — purchase ledger, sales ledger, payroll, bank reconciliations and the first draft of the management accounts — stays with an in-house finance team or an outsourced accounts provider. The CFO’s days are best spent on the work only a CFO can do: reviewing and interpreting the numbers, owning the forecast, leading funding and lender conversations, advising the board and building the finance function. If the business does not yet have anyone producing reliable numbers, part of the CFO’s early brief will be to fix that, either by hiring or by appointing a provider.

Fractional CFO vs Fractional FD vs Financial Controller

Clients often come to us asking for a fractional CFO when what the business needs is a finance director or a financial controller, and occasionally the other way round. The titles overlap in smaller companies, but the emphasis of each role is different, and getting it right affects both the calibre of candidate you attract and the day rate you pay. Our guide to the difference between a financial controller and a finance director goes into more depth.

In practice many fractional CFOs cover finance director work in smaller businesses, and many businesses need both: a fractional CFO for strategy and investors, with a financial controller or strong finance manager delivering the numbers underneath. On the briefing call we will help you decide which level of hire the business needs now and which it will need in eighteen months.

What a Fractional CFO Typically Delivers in the First 90 Days

Every engagement is different, but a well-run fractional CFO appointment usually follows a recognisable shape over the first three months. Agreeing these milestones before the CFO starts gives both sides a clear basis for reviewing how the engagement is going.

Days 1–30: diagnose

• Meet the leadership team, board, investors, bank and external accountant or auditor
• Review the latest management accounts, budget, forecast, cash position and funding arrangements
• Assess the finance team, systems, controls and month-end timetable
• Identify the immediate risks: cash, covenants, tax, compliance or reporting gaps
• Agree the priorities and the measures of success with the CEO or chair

Days 31–60: stabilise and build

• Introduce a rolling cash forecast and a consistent monthly reporting pack with agreed KPIs
• Rebuild or validate the financial model that underpins the business plan
• Fix the most pressing control weaknesses and tighten the month-end process
• Set out any changes needed to the finance team, systems or external advisers

Days 61–90: lead

• Present a board-ready pack and a reforecast the board and investors can rely on
• Lead the first conversations with investors, lenders or acquirers where a transaction is planned
• Deliver a finance roadmap for the next twelve months, including the shape of the future finance function
• Review the engagement itself: the right number of days, the right scope and what success looks like next

Where a fractional CFO is brought in for a specific event — a funding round, a refinancing or a sale — the 90-day plan is built around that timetable instead, and the days per week may be front-loaded accordingly.

Fractional CFO Day Rates and Cost

Fractional CFOs in the UK are paid on a day rate. The rate depends on the CFO’s sector background and track record, the complexity of the brief, whether the work involves a transaction such as a fundraise or sale, the size and ownership of the business, and whether the role carries regulatory responsibility. A CFO with a recent private equity exit, or one who can hold a regulated senior manager function, will command a higher rate than a generalist working with an owner-managed business. Location matters less than it did, because many fractional engagements are partly remote.

The total cost of an engagement is simple to model: the agreed day rate multiplied by the number of days each month. That makes the fractional model easy to scale up around a funding round or year-end, and easy to scale back when the business is in a steadier phase. Where we introduce a fractional or interim CFO on a day-rate basis, the day rate we quote includes our fee, so you see one figure for the engagement.

When comparing the cost with a permanent appointment, look at the total cost of employment rather than the salary alone. A permanent CFO also brings employer National Insurance, pension contributions, benefits, bonus and often equity, plus a recruitment fee, notice periods and the cost of a wrong hire. For permanent CFO pay, see our CFO salary guide; for how fractional costs compare in the capital, read how much a London fractional CFO costs. Exec Capital can provide remuneration and day-rate benchmarking for your specific brief as part of the initial briefing call.

How Our Fractional CFO Engagements and Fees Work

Our fee structure depends on the type of engagement, and we agree it with you at briefing before any search work starts. There are no surprises later.

Fractional and interim CFOs: day-rate basis

For fractional and interim appointments, the CFO is engaged on a day rate for the days they work. The day rate we agree with you includes our fee. You approve the rate and the expected days before the engagement begins, and the commitment can be reviewed as the needs of the business change.

Permanent CFOs: retained or contingent

Where a fractional engagement leads to a permanent CFO hire, or you need a permanent appointment from the outset, we run the search on a retained or contingent basis depending on the seniority of the role, the size of the market and how exclusive you want the process to be. Our guide to retained vs contingent executive search explains the difference and when each makes sense.

What is included

• A briefing session to define the role, the priorities and the profile of CFO that fits
• Advice on format — fractional, part-time, interim or permanent — and on the number of days needed
• Day-rate and remuneration benchmarking for your brief
• Search across our CFO and finance network and targeted approaches to candidates who are not actively looking
• Screening, interviews and referencing against your brief, sector and stage
• Interview coordination, feedback and candidate management throughout
• Support with the engagement terms, onboarding and the first review of the engagement

IR35, Contracts and Insurance for Fractional CFOs

Most fractional CFOs work through their own limited company, which means the off-payroll working rules (often called IR35) need to be considered for every engagement. Who decides employment status depends on the size of the client. Where the client is a medium or large organisation, the client is responsible for deciding the worker’s employment status for tax and must issue a status determination statement setting out its decision and reasons. Where the client is small, the CFO’s own company makes that decision. HMRC’s guidance on understanding off-payroll working (IR35) sets out the rules and responsibilities.

The Companies Act size thresholds used to decide whether a company is small were raised for financial years beginning on or after 6 April 2025. HMRC has confirmed that this change will have no practical impact for off-payroll working until 6 April 2027 at the earliest, because a company’s size is judged by reference to previous years — see the April 2025 HMRC Employer Bulletin. If your business is close to the thresholds, take advice on which side of the line you sit before the engagement starts.

Status turns on the reality of the working relationship, not the label in the contract. A fractional CFO who works across several clients, sets their own schedule within the agreed days, delivers defined outcomes and is not managed in the same way as an employee is in a different position from someone who is treated as a member of staff in all but name. We help clients set up the engagement terms sensibly, but status decisions and tax advice should come from your own advisers.

Two other points to settle early. First, insurance: check that the CFO holds professional indemnity cover appropriate to the work, and whether your directors’ and officers’ policy needs to cover them, particularly if they are appointed to the board. Our guide to insurance and liability for fractional leaders covers the main issues. Second, authority: agree in writing what the CFO can sign, approve and commit to on the company’s behalf, and how they fit into the bank mandate.

The Fractional CFO Search Process

Every search follows the same six stages. We agree the timetable with you at briefing, because the right pace depends on your situation — an imminent funding round or an unexpected departure needs a different tempo from a planned appointment.

How to Assess a Fractional CFO

Assessing a fractional CFO is different from assessing a permanent hire. You are not buying potential or a long-term cultural fit in the usual sense; you are buying someone who can make a measurable difference from the first month, on limited days, while working alongside other clients. These are the questions we focus on when we assess candidates, and the ones we suggest you test at interview.

Have they done this exact job before?

Ask for specific examples that match your situation: the funding round they led and how much was raised, the sale process they prepared a business for, the cash crisis they managed, the finance function they rebuilt. A fractional CFO’s value comes from pattern recognition, so recent and relevant experience matters more than an impressive title at a much larger company.

Can they work at your scale?

A CFO who has only worked in large groups with deep finance teams may struggle in a business where they need to build the model themselves. Equally, a CFO who has only worked with very small businesses may not carry enough weight with institutional investors. Probe how they have worked with lean teams and limited systems.

How will they use the days?

Ask how they would structure two days a week in your business, what they would delegate, what they would do remotely and what needs to happen on site. Good fractional CFOs have a clear operating rhythm and will tell you honestly whether the days you have in mind are enough.

Capacity and conflicts

Ask how many other clients they work with, how their time is committed across the month, and whether any of those clients compete with you or could create a conflict. Check how they would cover a peak in your business, such as a due diligence process, if another client has a peak at the same time.

Credentials and references

Check professional qualifications directly with the relevant accountancy body, and take references from CEOs, chairs or investors the CFO has worked with recently — ideally in a fractional capacity. We take references as part of our process and will tell you what we found.

Sectors We Place Fractional CFOs In

• Technology, SaaS and software businesses — including AI-native companies and digital businesses requiring investor-facing finance
• Financial services and fintech — FCA-regulated businesses, challenger banks, payment platforms, and investment managers
• PE and VC-backed portfolio companies — businesses at value creation stage requiring experienced financial leadership
• Professional services and consulting — law firms, accountancy practices, and advisory businesses at growth stage
• Manufacturing and engineering — operations-led businesses with complex cost structures and capital requirements
• Healthcare and life sciences — businesses with regulatory reporting obligations alongside commercial growth
• E-commerce and retail — direct-to-consumer and marketplace businesses managing working capital and rapid scale
• Property and real estate — development businesses, asset managers, and proptech companies

Who we place fractional CFOs with

Our fractional CFO clients tend to fall into a handful of groups. Founder-led and owner-managed businesses that have outgrown their external accountant and need a senior finance voice at the leadership table. Venture-backed start-ups and scale-ups preparing for their next round, where investors expect a credible CFO but the business is not yet ready for a full-time one. Private equity and family-office-backed companies, where the investor wants experienced financial leadership in place quickly and on a flexible basis — our guide to how fractional executives fit into PE-backed firms explains how investors typically use the model. And established businesses facing a specific event, such as a refinancing, an acquisition, a sale, or the sudden departure of a CFO.

We work with businesses across the UK from our offices in London and Cannock, and many of our fractional CFO engagements are hybrid or largely remote, which widens the pool of candidates available to clients outside the main financial centres.

Fractional CFOs in FCA-Regulated Firms

Hiring a fractional CFO into an FCA-regulated firm needs more planning, because the role may require regulatory approval before the person can start. Under the Senior Managers and Certification Regime, people performing senior management functions must be approved by the FCA (or the PRA at dual-regulated firms) before they take up the role.

Which function applies depends on the firm. The SMF2 Chief Finance function applies only to banks, insurers and Enhanced SMCR firms. At a Core firm, a CFO who sits on the board as an executive director will normally need approval as SMF3 Executive Director; a CFO who is not on the board may not need to hold a senior management function at all. Our guide to hiring an SMF2-approved CFO for a regulated firm covers the approval process in more detail.

Timing matters. Under section 61 of the Financial Services and Markets Act 2000, the regulator must decide a complete application within three months, and the clock stops while it waits for information it has asked for. Where a senior manager leaves unexpectedly, the temporary cover rule in SUP 10C — amended by the FCA’s SMCR changes that took effect on 24 April 2026 (PS26/6) — allows a firm to use cover while it has 12 weeks to submit an approval application, with cover continuing until the application is decided. The FCA’s October 2026 consultation, CP26/37, proposes extending this to 18 weeks and moving a number of functions from pre-approval to notification. SMF16 Compliance Oversight and SMF17 Money Laundering Reporting Officer are expected to remain pre-approved.

Payment institutions and e-money institutions sit outside SMCR. They do not appoint SMFs, but the FCA does assess the people responsible for their management, and they must appoint an MLRO under the Money Laundering Regulations.

Many regulated businesses that need a fractional CFO also need fractional compliance cover, and the two are often hired together. For the compliance side, see our fractional chief compliance officer, fractional compliance officer (SMF16) and fractional MLRO (SMF17) services, or an interim chief compliance officer where full-time cover is needed while a permanent appointment is made.

Making a Fractional CFO Engagement Work

Most fractional CFO engagements that disappoint do so for the same few reasons: the scope was never agreed, the days were too few for the job, or the CFO was kept at arm’s length from the decisions they were meant to influence. These are the practical steps that make the difference.

• Agree the scope and the measures of success in writing. Set out the three or four outcomes the CFO is accountable for in the first six months, and review them at 90 days.
• Fix the rhythm. Agree which days the CFO is in, which are remote, and how they can be reached between those days. Consistency helps the finance team plan around them.
• Give them a seat at the table. Invite the CFO to leadership and board meetings and copy them into the decisions that have financial consequences. A fractional CFO who only sees the numbers after decisions are made cannot add much value.
• Make sure someone produces the numbers. The CFO’s time is best used reviewing and acting on reliable information, not producing it. Make sure there is a bookkeeper, finance manager or accounts provider in place, or that hiring one is in the first-month plan.
• Clarify authority. Be clear about what the CFO can approve, sign and say to investors and lenders on the company’s behalf.
• Review the days regularly. Increase the commitment ahead of a fundraise, audit or sale, and reduce it in steadier periods. That flexibility is one of the main advantages of the model.

The Benefits of a Fractional CFO

• Board-level financial expertise at significantly lower cost than a permanent hire
• Fast impact — an experienced CFO who has done the job before can contribute from the first weeks of the engagement
• Flexible engagement that scales up or down as your requirements change
• Cross-sector experience from multiple businesses at different growth stages
• Investor and lender credibility — a named CFO with relevant track record
• Financial discipline and governance that supports your next funding round or exit
• Bridge leadership while a permanent CFO search is conducted

Moving from a Fractional to a Full-Time CFO

A fractional CFO is often the right answer for two or three years, not for ever. The signs that a business is ready for a full-time CFO are usually clear: the CFO is consistently working more days than agreed, the finance team has grown to the point where it needs daily leadership, the business is preparing for a large transaction or a listing, or investors are asking for a full-time finance executive on the board.

Sometimes the fractional CFO becomes the permanent CFO. More often, the fractional CFO helps define the permanent role, sits on the interview panel and hands over to their successor in an orderly way. Our article on replacing fractional executives with full-time hires sets out how to plan the transition. Because we recruit fractional, interim and permanent CFOs, we can run the permanent search when the time comes, with the benefit of knowing your business well.

Frequently Asked Questions

What is a fractional CFO?

A fractional CFO is an experienced Chief Financial Officer who works with your business on a part-time or defined-day basis — typically one to three days per week — providing senior financial leadership without the cost or commitment of a full-time permanent appointment.

How much does a fractional CFO cost in the UK?

Fractional CFOs are paid a day rate, so the cost is the agreed rate multiplied by the days worked each month. The rate depends on the CFO’s background, sector, and the complexity of the brief — transaction, private equity and regulated-sector experience command higher rates. Where we introduce a fractional CFO, the day rate we quote includes our fee. We provide benchmarking for your brief on the initial call.

What is the difference between a fractional CFO and an outsourced CFO?

A fractional CFO works as a named member of your leadership team on a defined-day basis — they attend your senior team meetings, lead your finance function, and are accountable to your board. An outsourced CFO typically provides financial management services through a firm rather than as a named individual. Exec Capital places named fractional CFOs who become part of your team.

How quickly can you place a fractional CFO?

We agree the timetable with you at briefing, and it depends on how specialised the brief is and how quickly you can interview. Fractional searches usually move faster than permanent ones because candidates are not tied to long notice periods. For urgent requirements — a CFO departure or an imminent fundraising round — tell us at the outset and we will prioritise the search accordingly.

Can a fractional CFO support a fundraising round?

Yes — fundraising support is one of the most common reasons businesses appoint a fractional CFO. An experienced fractional CFO prepares investor-ready financial models, manages the financial due diligence process, and provides credibility with investors and lenders throughout the funding process.

Do you recruit fractional CFOs outside London?

Yes. Exec Capital recruits fractional CFOs across the UK — London, Manchester, Birmingham, Bristol, Leeds, Edinburgh, and all major business centres. Many fractional CFO engagements are partly or fully remote, which significantly expands the available candidate pool.

How is Exec Capital different from other CFO recruitment agencies?

Exec Capital was founded by Adrian Lawrence FCA — a Fellow of the ICAEW and a qualified finance professional who has placed fractional, interim and permanent CFOs since 2018 and oversees each mandate. Our specialist team runs every search, and every candidate is assessed not just on their career history but on the quality of their financial thinking and whether they can operate credibly at CFO level in a business at your stage. Most generalist recruiters cannot make that assessment. We also offer Fractional Financial Controller services via our sister company Accountancy Capital.

Is a fractional CFO inside or outside IR35?

It depends on the facts of each engagement. For medium and large clients, the client decides the CFO’s status and issues a status determination statement; for small clients, the CFO’s own company decides. Many fractional CFOs work across several clients on defined outcomes, which is relevant to the assessment, but the decision should be made on the actual working arrangements and with your own advisers.

Can a fractional CFO sit on the board?

Yes. Many fractional CFOs are appointed as statutory directors, which strengthens their standing with investors and lenders. If you appoint them to the board, check your directors’ and officers’ insurance, and in an FCA-regulated firm check whether the role needs approval as a senior management function before they start.

Should I hire a fractional CFO or a fractional finance director?

Choose a fractional CFO when the priority is strategy, capital, investors and board leadership. Choose a fractional finance director when the priority is running the finance function well — management accounts, budgets, cash, controls and the team. We recruit both and will recommend the right level of hire on the briefing call.

For Fractional CFO Candidates

If you are an experienced CFO looking for fractional, part-time or interim work rather than hiring one, please register with us as a candidate and browse our current executive opportunities. We are always keen to hear from CFOs with fundraising, private equity, transaction or regulated-sector experience.

Related Executive Recruitment Services

• CFO Recruitment — permanent Chief Financial Officer search
• Interim CFO — full-time finance leadership for defined-period requirements
• Part-Time CFO — senior finance oversight on a fixed number of days a month
• Fractional Finance Director — hands-on finance function leadership on a fractional basis
• Startup CFO Recruitment — first full-time finance leaders for venture-backed businesses
• Portfolio Company CFO Recruitment — CFOs for private equity portfolio businesses
• Fractional COO — operational leadership on a fractional basis
• Fractional CEO — chief executive leadership for scaling businesses
• Fractional CMO — marketing leadership on a fractional basis
• Fractional C-Suite Recruitment — all fractional C-suite roles
• C-Suite Recruitment — full executive team placement
• CFO Salary Guide — UK market rates for Chief Financial Officers