Fractional CFO or a full-time FD?
If your startup needs serious financial leadership but a full-time hire feels too big a commitment, you’re weighing these two up. Here’s how to decide — on cost, expertise, speed and risk.
The short answer: most UK startups before Series B get better value and flexibility from a fractional CFO, and only move to a full-time hire once the finance workload genuinely fills a five-day week.
But the right call depends on your stage, your complexity and your budget. Here’s the honest comparison.
The short version
- Fractional CFO: flexible, £3,000–£7,000+ a month plus VAT, ideal pre-seed to Series A/B.
- In-house FD: full-time, ~£200k–£260k loaded, best once finance fills a full role.
- Many startups use a fractional CFO first, then hire in-house around Series B.
The quick comparison
| Fractional CFO | In-house FD (full-time) | |
|---|---|---|
| Typical cost | £3,000–£7,000+ / month plus VAT | £200,000–£260,000 / year loaded |
| Commitment | Flexible; scale up or down monthly | Permanent employee; notice & redundancy risk |
| Time on your business | ~0.5–3 days/week as needed | Full-time |
| Experience | Has seen many startups, rounds & exits | Deep on your business, narrower exposure |
| Speed to start | Days to a couple of weeks | 2–4 month hire process |
| Best for | Pre-seed to Series A/B | Series B+ or finance-heavy operations |
What each role actually gives you
A fractional CFO is a senior finance leader who works with you part-time and ongoing. You get the strategic thinking — forecasting, fundraising, board reporting, modelling, cash strategy — without a six-figure salary. Because good fractional CFOs work across many startups, they bring pattern recognition: they’ve seen what investors expect and where cash plans go wrong.
An in-house FD is a full-time employee who lives and breathes your business. They’re available every day and build deep institutional knowledge. The trade-offs are cost, commitment and breadth — one person’s experience versus someone who sees dozens of companies.
Cost: the honest numbers
A full-time CFO base salary runs roughly £140,000–£162,000 in London, and once you add employer’s NI, pension, bonus, equity and recruitment fees, the true year-one cost is often £200,000–£260,000. A full-time FD is less, but still typically a £90,000–£140,000+ loaded commitment.
A fractional CFO, at £3,000–£7,000+ a month plus VAT, usually costs 50–80% less than a full-time CFO — because you only pay for the time you actually use. For more on this, see our guide to how much a fractional CFO costs in the UK.
When a fractional CFO is the right call
You’re pre-seed to Series A
You need senior input, but not five days a week of it — and probably can’t yet justify or attract a full-time CFO.
You’re raising
You need a credible model, board pack and investor narrative, fast. Fundraising is one of the most common triggers.
Cash visibility has outgrown spreadsheets
Your accountant keeps you compliant, but you need someone owning forecasting and cash strategy.
You want flexibility
Dial support up around a raise and down afterwards, without hiring and firing.
When to hire in-house instead
A full-time FD or CFO makes sense when finance work genuinely fills a full-time role (usually Series B+), when you have complex daily operations — multiple entities, high transaction volumes, regulated activity — or when you’re scaling a finance team that needs a permanent leader to build and manage it.
Many companies do both over time: a fractional CFO to get investor-ready and through early rounds, then a full-time hire once the workload and budget support it. A good fractional CFO will tell you when you’ve reached that point — and can even help you hire their replacement.
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Take the finance service quiz →Frequently asked questions
Is a fractional CFO cheaper than a full-time finance hire? +
Usually, yes. A full-time CFO can cost £200,000–£260,000 a year once salary, NI, pension and benefits are included. A fractional CFO typically costs 50–80% less because you only pay for the time you need.
Can a fractional CFO help us raise investment? +
Yes — fundraising support is one of the most common reasons startups bring in a fractional CFO. They prepare your financial model, board and investor reporting, and the numbers narrative investors expect.
At what point should we hire a full-time CFO or FD instead? +
Usually when finance work fills a full-time role and the budget supports it — often around Series B, or earlier if you have complex, high-volume or regulated operations. A good fractional CFO will flag when you’ve reached that stage.
What’s the difference between an FD and a CFO? +
Broadly, an FD focuses on running the finance function — reporting, controls and operations — while a CFO leads financial strategy, fundraising and commercial decisions. In smaller companies the roles overlap, and a fractional CFO can often cover both at an early stage.
Explore Fractional CFO support
Forecasting, board and investor reporting, fundraising and strategy — from £3,000 + VAT / month, with no long contract.
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