What Does a Fractional CFO Actually Do?

A Fractional CFO manages the strategic financial direction of your business. Unlike a bookkeeper (who records transactions) or an accountant (who handles compliance), a CFO looks forward, not backward.

Here are the core responsibilities they handle:

1. Cash Flow Planning & Forecasting

Cash flow problems are the #1 reason small businesses fail. A Fractional CFO builds cash flow models that show:

• how much money is coming in

• when it’s coming in

• where it’s going

• how long your runway is

• what risks are ahead

With this clarity, you can avoid “cash crunch” surprises and make smarter decisions.

2. Profitability & Margin Analysis

A Fractional CFO helps you understand:

• which products/services make you the most money

• which clients drain your time or resources

• how pricing changes affect your margins

• where your hidden costs are

This often leads to higher profit—and a more efficient business.

3. Financial Strategy & Growth Planning

This includes:

• determining whether to hire or outsource

• evaluating new projects or product lines

• forecasting the financial impact of growth

• planning for expansion into new markets

• scenario planning (“What happens if revenue drops 20%?”)

Small businesses rarely do this level of planning on their own — and it’s usually the difference between stable growth and chaotic guessing.

4. KPI Creation & Executive Reporting

A Fractional CFO builds dashboards and scorecards that show the health of your business in real time.

Common KPIs include:

• gross margin

• customer acquisition cost

• customer lifetime value

• revenue per employee

• net profit margin

• burn rate

• monthly recurring revenue

This gives owners clarity and accountability every single month.

5. Pricing & Financial Modeling

If you're unsure what to charge, whether to change your pricing structure, or how to scale profitably, a Fractional CFO runs the analysis for you.

This ensures your prices reflect:

• true costs

• market demand

• profit goals

• team capacity

This is one of the fastest ways to improve profitability.

6. Systems, Processes & Automation

Many small businesses operate with messy spreadsheets, disconnected tools, or outdated workflows.

A Fractional CFO helps implement:

• automated reporting

• clean financial systems

• SOPs and repeatable workflows

• integrated software (PayPal, QuickBooks, Stripe, payroll, etc.)

This removes bottlenecks and frees up your time.

7. Support With Fundraising, Loans, or Investor Prep

If you’re considering borrowing money or seeking investment, a Fractional CFO prepares:

• financial models

• decks

• forecasts

• budgets

• lender/investor reports

This dramatically improves your chances of approval.

Why Small Businesses Benefit From Hiring a Fractional CFO

Small businesses often think they “aren’t big enough” for CFO-level strategy — but this is when it’s needed most.

Here are the biggest benefits:

1. You Get Expert Guidance at a Fraction of the Cost

A full-time CFO can cost $200,000+ in annual salary. A Fractional CFO gives you 20–40 hours per month of senior expertise for a fraction of that.

2. Better Decision-Making

Instead of guessing, you get data-driven clarity on:

• hiring

• pricing

• expansion

• marketing spend

• profit goals

• cash flow health

This removes stress and gives you confidence.

3. You Avoid Expensive Mistakes

A Fractional CFO helps prevent:

• tax surprises

• cash flow shortages

• overspending

• bad hires

• unprofitable projects

• mispriced services

These issues can cost a small business tens of thousands.

4. Your Business Becomes Scalable

When your numbers, systems, and reporting are clean and predictable, you can scale without chaos.

5. More Time for the CEO to Do CEO-Level Work

Instead of fighting fires, you can focus on:

• sales

• client relationships

• product development

• leadership

• growth

Your business becomes easier to run — with more margin and less stress.

Is It Time for You to Hire a Fractional CFO?

You may be ready if you:

• feel uncertain about your financial future

• don’t have clear monthly reporting

• want better cash flow

• plan to grow or expand

• are juggling multiple projects or revenue streams

• have inconsistent profitability

• want professional financial leadership without the full-time salary

  
  

If this sounds like you, Olly Consulting can help.

Get Financial Clarity—with a Fractional CFO That Feels Like a Partner

At Olly Consulting, we help small business owners build profitable, predictable, scalable companies—without financial confusion.

👉 Book your free 30-minute consultation.

Let’s review your finances together and map out your next steps for growth.