How Much Does a CFO Cost?

Companies over $1 million should have a CFO, even a smaller start-up or fast-growing business should consider hiring a CFO. But, do you get a better value from a hiring a full-time CFO or a fractional CFO?

Fractional CFO Price

Cost of Hiring a Full-Time CFO

Usually, a large- to enterprise-company hires a full-time CFO. However, you should consider a few things before you wonder if you also need to hire a full-time CFO. 

If you hire a full-time CFO, you must consider the following:

  • Salary base of $200,000 plus per year.
  • Bonus structure.
  • Payroll taxes.
  • Insurance and 401k benefits.
  • Stock options or other equity.
  • Computer equipment, software, and office expenses.
  • Expense budget for travel and meals.
  • Hiring, recruiter, and onboarding costs.
  • Difficult and expensive to let go with attorney fees and severance.
  • Additional personnel to help the CFO, such as an Accountant, Controller, or Financial Analyst.

Considering these costs, hiring a full-time CFO could get to the point of costing $250,000 - $400,000 per year, which for some businesses is not an option. 

Cost to Hire a Fractional CFO

Fractional CFO Services Pricing Structure

The pricing structure for fractional CFO services is based on the client's level of service, size, and number of entities. For example, our firm has clients that range from $1,500 to $6,000 per month. At those rates, you can quickly see how $18,000 - $72,000 annually is so much less than the cost of a full-time CFO. You couldn't even hire a Controller for anything less than $120,000 - $150,000 with fully loaded costs. 

Benefits of a Fractional CFO:

  • Provide a high level of work at a fraction of the cost of a full-time CFO.
  • Only pay for the hours you need. You can use bookkeepers and accountants to do lower-level work rather than paying a CFO to do it. 
  • You can be much smaller before you can afford one. Our firm works with fast-growing start-ups and businesses as small as $1 million in revenue to $20 million in revenue. 
  • You get a diverse level of experience, expertise, and network within the firm.
  • Fractional CFO service firms must stay on top of all the latest technologies, strategies, and accounting practices. 
  • They have a deep network of attorneys, bankers, business brokers, tax CPAs, and insurance specialists that can be helpful. 
  • You can cancel at any time. We ask for 30 days' notice. 
Fractional CFO cost less than a full-time CFO
Fractional CFO Salary

How to Hire a Fractional CFO — Important Steps

  • Questions you should ask in the beginning:
    • How experienced is the CFO? There are levels of CFOs, from glorified bookkeepers and Controllers, to CFOs with 20 plus years of experience. Usually, you pay for what you get. 
    • What is the average response time for my request and inquiries?
    • Does the CFO offer tax consulting and preparation in their services? 
  • Ask the firm to give you a good proposal and to look at your financials. Our firm, Bender CFO Services, always reviews the financials and provides a comprehensive proposal with recommendations, examples of reports, and forecast models.
  • Research the fractional CFO firm’s website and LinkedIn profiles. Ask about their experience and even look at their resume if needed. 
  • Ensure you have set meetings once a week or month for a status update and to discuss financials, forecasts, processes, and strategies. 
  • Ask how they keep you apprised of tasks and projects. Bender CFO Services uses a project management software called Asana. 
  • Ask them to assess the number of hours worked quarterly and at least annually.

The Bender CFO Services Difference

We’re built on the success and trust of our clients. We know that not all CFOs are the same and encourage you do to your research.

  • The costs of hiring a Full-time CFO can easily run $250,000 - $400,000 annually.
  • At Bender CFO Services our Fractional CFO services cost $18,000 - $72,000 annually.
  • Our services can be canceled at any time with one-month notice.

We offer High Value at a Fraction of the Cost of a hiring a full-time CFO.

Discover how a fractional CFO can help your company.

Contact us today for a Free Financial Assessment