Becoming a fractional CFO

A fractional CFO in the UK charges £800 to £1,500 a day and holds three to four clients at once. What follows is the arithmetic on that, the honest ceiling, and the cases where this seat does not work part-time at all.

What you would earn

Across 46 billable weeks rather than 52, because you will take holidays and because a year of unbroken client work is not a thing that happens.

Day rate1 day a week2 days a week3 days a week
Starting out£800 a day£36,800a year£73,600a year£110,400a year
Established£1,150 a day£52,900a year£105,800a year£158,700a year
Top of the band£1,500 a day£69,000a year£138,000a year£207,000a year

Before tax, before your own costs, and assuming the days are actually sold. Most people starting out spend a good part of the first year at fewer days than they planned.

What moves you up the band

Higher end for fundraise or exit work, and for regulated sectors.

How many clients the seat holds

Three to four, and four is a full week. The finance seat is the most schedulable on this list, because month-end, board packs and forecasting all move to a known rhythm, which is why CFOs carry more clients than anyone else here. The ceiling is not hours, it is fundraises: one live raise eats a whole client's worth of unplanned time.

Where the first client comes from

Almost always somebody who already watched you work. A founder you advised, an investor who saw you in a board meeting, or the company you just left, on a retainer. Cold outreach works for the third client and almost never for the first, because the first one is buying your judgement on nothing but reputation.

What the work actually is

Less doing, far more deciding. The bookkeeping and the close belong to somebody else, and if they do not, the arrangement is wrong. What you are being paid for is the forecast somebody acts on and the conversation nobody else will start.

When this seat does not work fractionally

What people get wrong

The mechanics, briefly

Most UK fractional executives work through their own limited company and invoice per day or on a monthly retainer. Professional indemnity cover is worth having before the first engagement rather than after. Check what your last employment contract says about notice and restrictions before you start approaching anybody, particularly if a first client might be somebody you met there.

Employment status is the question that worries people most, and it is worth understanding properly rather than assuming: IR35 and fractional executives covers who decides, what gets tested, and the directorship point that catches people out.

Common questions

What should I charge as a fractional CFO in the UK?

£800 to £1,500 a day is the band on the bench, with a typical rate around £1,150. Higher end for fundraise or exit work, and for regulated sectors. At £1,150 a day, two days a week is about £105,800 a year across 46 billable weeks.

How many clients can a fractional CFO hold at once?

Three to four, and four is a full week. The finance seat is the most schedulable on this list, because month-end, board packs and forecasting all move to a known rhythm, which is why CFOs carry more clients than anyone else here. The ceiling is not hours, it is fundraises: one live raise eats a whole client's worth of unplanned time.

Where does the first client actually come from?

Almost always somebody who already watched you work. A founder you advised, an investor who saw you in a board meeting, or the company you just left, on a retainer. Cold outreach works for the third client and almost never for the first, because the first one is buying your judgement on nothing but reputation.

When does a fractional CFO arrangement not work?

The company has no bookkeeper and no working records. You will spend the retainer on cleanup and neither side will be happy. The business is in a formal distress process and needs somebody daily. They want an introduction to investors rather than a finance seat, which is a different service and usually oversold.

Other seats

Hiring one rather than becoming one? What a fractional CFO covers and what one costs are the other side of the same numbers.

If you have held the seat

Listing is free and always will be

No subscription, no commission, and nothing taken from your rate. What listing costs, here and elsewhere, or put yourself on the bench.