Most startup founders hit the same inflection point: their bookkeeper hands them financial statements each month, but those numbers don’t answer the questions that actually matter—like whether they can afford to hire three more people, how long their cash will last at the current burn rate, or what financial shape they need to be in before approaching investors. That’s when they start looking for fractional CFO services.
A fractional CFO is a part-time chief financial officer who provides strategic financial leadership—forecasting, fundraising preparation, KPI tracking, and growth planning—without the $200,000+ salary of a full-time hire. This guide covers what fractional CFO services include, how to choose the right firm for your stage and industry, what these services typically cost, and profiles of fifteen leading companies offering fractional CFO support to startups.
What a Fractional CFO Service Is and Why Startups Need One
A fractional CFO is a part-time chief financial officer who provides strategic financial leadership without the full-time salary and equity commitment. Companies like Burkland Associates, Kruze Consulting, airCFO, and Bennett Financials offer this arrangement to startups at different stages—from pre-seed companies to those preparing for Series B rounds. The services typically include financial planning, fundraising preparation, cash flow forecasting, tax strategy, and KPI tracking.
Here’s the distinction that matters: a bookkeeper records your transactions and tells you what happened last month. A fractional CFO analyzes that data, forecasts what’s coming next, and helps you make decisions about where to spend money and how to grow. While a full-time CFO might cost $200,000+ in salary plus equity, fractional services give you access to that same expertise for a monthly retainer that fits your budget.
Most fractional CFO firms specialize in specific industries. Some focus exclusively on VC-backed tech companies, others work primarily with service businesses like law firms or medical practices, and still others concentrate on SaaS companies navigating revenue recognition complexity. This specialization means you’re getting someone who already understands your business model, your metrics, and your challenges—not someone who has to spend months learning your industry.
The real value shows up in how they use your financial data. Instead of handing you a profit and loss statement and calling it done, a fractional CFO identifies what’s constraining your growth, forecasts different scenarios, and helps you allocate resources to the initiatives that drive the most value. For a startup trying to extend runway, prepare for fundraising, or scale profitably, that guidance often makes the difference between hitting your next milestone and running out of cash.
Typical Costs and Engagement Models for Startup CFO Services
Fractional CFO pricing varies based on your revenue, complexity, and service scope. Most firms structure their services in three ways: monthly retainers, project-based engagements, or equity arrangements.
1. Monthly Retainer Ranges
Monthly retainers typically range from $2,500 to $15,000+ depending on your company size and what you’re asking the CFO to handle. A pre-revenue startup might pay $3,000 monthly for quarterly financial reviews and basic forecasting. A $5M ARR SaaS company preparing for Series A might invest $10,000+ monthly for comprehensive services including board reporting, investor relations, and detailed financial modeling.
The retainer model gives you predictable costs and ongoing support. Firms usually define a set number of hours per month and specific deliverables like monthly financial reviews, KPI dashboards, cash flow forecasts, and strategic planning sessions.
2. Project Based Special Projects
Some fractional CFO firms work on specific projects instead of ongoing relationships. Common projects include preparing for a fundraising round, implementing new accounting systems, conducting financial audits, or building your first budget and forecast. Project fees typically range from $5,000 to $50,000+ depending on complexity and timeline.
This model works well if you already have capable internal finance support but face a specific challenge requiring expert help. However, you lose the continuous oversight and relationship building that comes with monthly retainers.
3. Equity or Success Fee Structures
Some providers, particularly those working with very early-stage startups, accept equity compensation or success-based fees tied to fundraising outcomes. You might see arrangements where the CFO takes 0.25% to 1% equity instead of cash fees, or charges 1-3% of capital raised for fundraising advisory work.
These structures preserve cash for pre-revenue companies, but they come with trade-offs. Equity dilutes your ownership permanently, and success fees can become expensive if you raise significant capital. Most established fractional CFO firms prefer cash retainers because the incentives align around long-term value creation rather than one-time events.
How to Choose and Hire a Fractional CFO Firm That Fits Your Stage
Selecting the right fractional CFO partner goes beyond comparing prices. The best fit depends on your industry, growth stage, existing financial infrastructure, and the specific problems you’re trying to solve.
1. Match Industry Expertise
Industry experience matters more than general financial expertise. A fractional CFO who specializes in SaaS companies understands subscription revenue recognition, customer acquisition costs, lifetime value calculations, and the metrics investors expect from software businesses. That same person might struggle with trust accounting complexities at a law firm or insurance reimbursement cycles at a medical practice.
Look for firms that explicitly list your industry among their specialties and ask for client references in similar businesses. The learning curve for understanding your business model can take weeks or months—you want someone who already speaks your language.
2. Assess Tech Stack Compatibility
Your fractional CFO works with your existing accounting software and tools, so compatibility matters. Most modern firms work with QuickBooks Online, Xero, NetSuite, and popular SaaS metrics platforms like ChartMogul or Baremetrics. If you use specialized industry software, confirm they have experience with it before signing on.
The best firms bring their own reporting and forecasting tools that integrate with your systems to provide real-time visibility. Ask to see sample dashboards and reports during your evaluation—you want to understand exactly what visibility you’ll gain.
3. Confirm Tax Strategy Integration
Some fractional CFO firms focus purely on strategic finance and expect you to work with a separate CPA for tax planning and compliance. Others integrate proactive tax strategy directly into their CFO services, ensuring growth decisions consider tax implications and maximize cash retention through strategic planning.
The integrated approach often delivers better outcomes because tax strategy and financial strategy connect deeply. Decisions about entity structure, expense timing, equipment purchases, and compensation planning all have significant tax implications that affect your cash position and runway.
4. Check KPI and Forecasting Depth
Not all fractional CFO services deliver the same level of sophistication. Some provide basic financial statements and simple cash flow projections. The best firms deliver detailed financial models, scenario planning, and industry-specific KPI tracking that gives you genuine insight into what drives your business.
Ask potential providers to walk through their forecasting methodology and show examples of the dashboards and reports you’d receive. You want forward-looking insight, not just backward-looking financial statements.
5. Evaluate Communication Cadence
Communication frequency and quality varies significantly across providers. Some firms offer monthly check-ins and email support between meetings. Others provide weekly touchpoints, real-time Slack access, and proactive outreach when they spot issues in your financials.
Your ideal communication pattern depends on your stage and how quickly your business changes. A stable $3M revenue business might thrive with monthly meetings, while a rapidly scaling startup burning through cash might benefit from weekly oversight and immediate access when questions arise.
Top 15 Fractional CFO Companies for Startups
The fractional CFO market has grown substantially over the past few years, with firms offering different specializations, service models, and pricing structures. Here’s a look at fifteen leading providers and what makes each one distinctive.
1. Bennett Financials
Bennett Financials works with growth-focused service businesses between $1M and $10M in revenue, particularly law firms, medical practices, marketing agencies, and professional services firms. The firm integrates strategic CFO services with aggressive tax planning—focusing on keeping more cash in the business through tax strategy rather than just saving a fraction of what you spend.
The approach positions the CFO as your business navigator: the CEO sets the destination, and the CFO charts the course, allocates resources, identifies obstacles, and measures progress monthly. If you’re a service business owner who wants to scale from $5M to $10M and wants someone to map out exactly how to get there, Bennett’s business development-focused CFO approach aligns with that goal.
2. AirCFO
AirCFO provides fractional CFO services and financial advisory tailored to early-stage startups. The team focuses on helping founders understand their financial position, build investor-ready financial models, and prepare for fundraising.
3. Kruze Consulting
Kruze Consulting specializes exclusively in VC-backed startups, working with companies funded by top-tier investors like Sequoia, Andreessen Horowitz, and Y Combinator. The deep expertise in startup accounting, tax credits, and fundraising preparation makes them a natural fit for technology companies on a venture track.
4. Forecastr
Forecastr focuses on financial modeling and forecasting for startups and SMBs, with particular strength in helping companies prepare for fundraising. The platform combines fractional CFO expertise with financial planning software to deliver detailed projections, scenario analysis, and investor-ready financial models.
5. Preferred CFO
Preferred CFO serves growing companies across multiple industries with a focus on businesses between $2M and $50M in revenue. The fractional CFOs bring Big Four and Fortune 500 experience to mid-market companies, offering strategic planning, cash flow management, and operational finance support.
6. Burkland
Burkland Associates specializes in technology companies and life sciences startups, with strong relationships in the venture capital community. They offer comprehensive financial management including accounting, tax, CFO services, and HR support specifically designed for high-growth companies.
7. NOW CFO
NOW CFO provides fractional CFO services with flexible engagement models designed to scale with your business. They work with companies at various growth stages, from startups to established businesses, offering everything from basic financial oversight to comprehensive strategic finance.
8. CFOshare
CFOshare takes a personalized, relationship-driven approach to fractional CFO services, matching clients with experienced CFOs based on industry and business requirements. The regional focus allows for in-person meetings and deeper integration with your team.
9. Pilot
Pilot combines technology-enabled bookkeeping with fractional CFO services for startups. The platform automates much of the routine accounting work while the CFO team provides strategic guidance on fundraising, financial planning, and growth strategy.
10. Acuity
Acuity offers strategic finance and operations consulting for growth companies, with expertise in financial planning, business intelligence, and operational improvement. The fractional CFOs work closely with leadership teams to optimize financial performance, improve margins, and build scalable financial processes.
11. VCFO
VCFO provides virtual CFO services with particular emphasis on cash flow management and financial strategy for growing businesses. The fractional CFOs help companies navigate growth challenges, secure financing, and build financial infrastructure that scales.
12. G Squared Partners
G Squared Partners offers full-spectrum fractional CFO services for growth-stage companies, including financial planning, fundraising support, and operational finance. They work with startups and established businesses across various industries, bringing institutional-quality financial leadership to companies that aren’t ready for a full-time CFO.
13. Paro
Paro operates as an on-demand marketplace for finance and accounting talent, including fractional CFOs. The platform matches companies with vetted financial professionals based on specific requirements and industry experience.
14. Ascent CFO Solutions
Ascent CFO Solutions provides strategic financial leadership for middle-market companies, with fractional CFOs who bring experience from larger organizations. They focus on companies in transition—whether scaling rapidly, preparing for sale, or navigating operational challenges.
15. FocusCFO
FocusCFO offers fractional CFO services with industry-specific expertise across manufacturing, distribution, professional services, and technology. The CFOs provide strategic planning, financial analysis, and operational improvement guidance.
When to Upgrade From Bookkeeping to Strategic CFO Support
Most startups begin with a bookkeeper who records transactions and prepares basic financial statements. Several clear signals indicate when you’ve outgrown that level of support and would benefit from strategic CFO guidance.
1. Revenue Passes One Million
Once your revenue crosses seven figures, financial complexity increases substantially. You’re likely managing multiple revenue streams, hiring employees, dealing with more significant tax obligations, and making decisions that have material impact on your cash position. A bookkeeper can tell you what happened; a fractional CFO helps you understand why it happened and what to do about it.
2. Preparing for Fundraising or Exit
Investors and acquirers expect sophisticated financial documentation that most bookkeepers aren’t equipped to provide. You want detailed financial models, clean historical financials, KPI tracking, and the ability to answer detailed questions about unit economics, customer acquisition costs, and margin trends. A fractional CFO prepares you for due diligence and helps you present your business in the best possible light.
3. Burn Rate Exceeds Six Months of Runway
When you’re burning through cash with limited runway remaining, you want more than historical financial statements—you want accurate forecasting and scenario planning. A fractional CFO models different growth scenarios, identifies ways to extend runway, and helps you make informed decisions about where to cut costs or how much capital to raise.
4. Tax Liability Jumps Unexpectedly
If you’re facing a large unexpected tax bill, it’s a sign you could benefit from proactive tax planning integrated with your financial strategy. A fractional CFO who incorporates tax strategy helps you structure your business, time expenses, and make operational decisions with tax implications in mind—keeping more cash available for growth rather than sending it to the IRS.
Frequently Asked Questions About Fractional CFO Services
How long does onboarding a fractional CFO company take?
Most fractional CFO firms complete onboarding within two to four weeks. This process typically includes reviewing your current financial systems, understanding your business model and goals, cleaning up any accounting issues, and establishing reporting cadences. The timeline can be shorter if your books are clean and longer if significant cleanup work is required.
Can a fractional CFO help raise venture capital?
Yes, experienced fractional CFOs regularly assist with fundraising by building detailed financial models, creating investor-ready financial presentations, preparing due diligence materials, and coaching founders through investor conversations. Many fractional CFO firms, particularly those specializing in VC-backed startups, have deep relationships with investors and understand exactly what they’re looking for in financial documentation.
Do I still need a tax CPA if I hire fractional CFO services?
It depends on the fractional CFO firm. Some focus exclusively on strategic finance and expect you to work with a separate tax professional for compliance and planning. Others integrate tax strategy directly into their CFO services, handling both strategic finance and proactive tax planning. Ask potential providers specifically about their tax capabilities and whether you’ll maintain a separate CPA relationship.
What metrics should I review with my fractional CFO each month?
The specific metrics depend on your industry and business model, but most monthly reviews cover cash runway and burn rate, revenue growth and trends, gross margins by product or service line, customer acquisition costs and lifetime value for subscription businesses, and progress toward financial milestones or fundraising goals. Your fractional CFO tailors the metrics dashboard to focus on the numbers that actually drive decision-making in your business.
Ready for Clarity and Growth? Talk to a Bennett Financials Expert
If you’re running a service business between $1M and $10M in revenue and want more than just financial statements—if you want a strategic partner who can map the path from where you are to where you want to be—Bennett Financials offers a different approach to fractional CFO services.
The model integrates three elements that most fractional CFO firms keep separate:
- Strategic Tax Integration: Structure strategies that keep substantially more cash in your business, often saving two to three times what you invest in the planning itself
- Growth-Focused Analysis: Build a specific roadmap showing exactly what happens to reach your revenue goal and identify which constraints to address first
- Navigator Approach: Chart the financial course while continuously watching for obstacles like cash flow issues, margin erosion, or operational inefficiencies
Talk to an expert to discuss whether Bennett Financials’ integrated CFO and tax strategy approach fits your growth goals.
