Hire Fractional CFO Services: Our Experience

Ani Gasparyan

BusinessConsultingExecutiveFinanceRecruitment

• Fractional CFO services offer critical financial leadership, enabling growing companies to manage cash flow, budgeting, and strategy without the expense of a full-time hire.
• This article examines how fractional CFO services can assist companies in navigating financial challenges, drawing on DevsData LLC’s real-world experience.

Running a small or medium-sized business (SMB) comes with its fair share of financial challenges. For example, around 60% of small businesses struggle with cash flow management, while others deal with issues like budgeting, financial planning, and managing expenses. This ongoing difficulty often leads to a need for expert financial guidance. Additionally, 75% of financial professionals at small and mid-sized businesses report struggling to hire qualified talent, with two-thirds also reporting difficulties with retention, often pointing to burnout and heavy workloads as key challenges.

“As financial challenges increase, more businesses are turning to fractional CFO services, resulting in a 103% increase in demand for interim CFOs in recent years.”

A fractional CFO service provides part-time or contract-based access to expert financial leadership, handling key tasks like strategic planning, cash flow management, budgeting, and financial reporting. These services allow businesses to benefit from high-level expertise without the cost of a full-time CFO.

In this article, we will explore what fractional CFO services are, the key benefits they offer, and how they can help small and medium-sized businesses tackle their financial challenges. We’ll also look at how DevsData LLC can support businesses by providing tailored fractional CFO services that drive financial stability and growth.

What is a fractional CFO?

A fractional Chief Financial Officer (CFO) is an experienced financial executive who works on a part-time, contract, or as-needed basis with businesses that do not require a full-time CFO. These professionals offer high-level financial oversight, strategic guidance, and management support, though typically on a more limited involvement than a permanent CFO. Fractional CFOs are typically engaged for specific projects, such as mergers, acquisitions, or financial restructuring, or for ongoing support, depending on the needs of the business.

This role differs from an interim CFO, who typically works full-time for a defined period to fill a gap during leadership transitions. Interim CFOs are often expected to handle day-to-day operations and provide continuity during leadership changes, while fractional CFOs are brought in for specialized support over a longer term but with fewer hours.

An increasingly common model is CFO-as-a-Service, where companies collaborate with specialized firms to access a range of CFO-level financial expertise on demand. This approach combines the benefits of a fractional CFO with broader support resources, offering flexibility, scalability, and cost efficiency, especially for startups and small to mid-sized enterprises.

Hiring a fractional CFO gives companies access to strategic financial insights, stronger risk management, and senior-level guidance without committing to a full-time executive.

This model is particularly valuable for businesses going through funding rounds, expanding into new markets, preparing for audits, or navigating periods of fast growth or change.

Key responsibilities of a fractional CFO

Financial strategy development

A fractional CFO works closely with business leaders to create a comprehensive long-term financial strategy. Beyond high-level planning, they focus on maintaining liquidity, managing working capital, and supporting informed decision-making through financial planning and analysis (FP&A). Their role helps businesses prepare for future growth, respond to market shifts, and stay resilient during financial uncertainty.

This responsibility often includes:

• Reviewing current cash flow and liquidity to maintain day-to-day operational stability
• Managing working capital to balance short-term obligations with long-term goals
• Developing forward-looking financial models and budgets as part of FP&A

Budgeting, forecasting, and cash flow management

A fractional CFO plays a key role in guiding the financial direction of a business through effective budgeting, forecasting, and cash flow oversight. These activities are closely connected. Reliable forecasts and well-structured budgets help define achievable goals, while strong cash flow management supports the financial stability needed to carry them out.

Typical responsibilities include:

• Developing detailed annual or quarterly budgets and financial forecasts.
• Monitoring day-to-day cash inflows and outflows to maintain operational stability.
• Setting achievable financial targets based on historical performance and market trends.

Together, these efforts provide a financial roadmap and help the business avoid disruptions, seize growth opportunities, and make more confident strategic decisions.

Financial reporting and analysis

A fractional CFO regularly examines and evaluates financial data to offer a clear understanding of the company’s financial health. This goes beyond preparing key reports such as income statements, balance sheets, and cash flow statements. It also includes consolidating data from multiple sources, comparing forecasts with actual results, and analyzing trends to identify risks and opportunities. Their goal is to turn complex financial information into meaningful insights that support confident, well-informed decision-making.

This responsibility typically includes:

• Analyzing key performance indicators (KPIs) and financial ratios.
• Providing insights into trends or anomalies in the financial data.
• Preparing reports that highlight areas of focus or opportunity.

Risk management and compliance

Financial risks take various forms, such as market, credit, operational, and regulatory risks. A fractional CFO helps identify and mitigate these risks by implementing strategies that safeguard the company’s financial assets. They also ensure that the business is in full compliance with financial regulations and reporting standards, reducing the risk of penalties or legal issues.

Risk management involves:

• Identifying financial risks that could affect business operations, including market volatility, credit exposure, or changes in tax laws.
• Developing strategies to minimize or mitigate those risks.
• Ensuring compliance with all relevant financial regulations, including tax laws, accounting standards, and industry-specific requirements.

Leadership and team guidance

A fractional CFO doesn’t just focus on numbers; they also play a crucial role in leading the finance team. This includes overseeing the accounting and finance departments, ensuring that tasks like financial reporting, budgeting, and compliance are handled efficiently. They may provide mentorship to financial staff or assist in setting up processes and systems that optimize the performance of the finance team.

Their leadership responsibilities include:

• Supervising and guiding finance staff to ensure high-quality work.
• Creating efficient processes for financial operations, including reporting and audits.
• Implementing training or professional development opportunities for the finance team.

Benefits of hiring a fractional CFO service

Hiring a fractional CFO can bring a wide array of benefits to businesses, especially those that cannot justify the expense of a full-time executive but still need strategic financial expertise. Here are some of the key advantages:

1. Cost-effectiveness

One of the key reasons businesses consider a fractional CFO is the potential for cost savings compared to hiring a full-time executive. While the service itself can still represent a significant investment, it eliminates the need to cover a full-time salary, benefits, and long-term commitments. This makes it a practical option for companies that need senior financial expertise but do not require it on a daily basis.

2. Expertise without the long-term commitment

A fractional CFO brings a wealth of experience to the table without the long-term commitment that comes with hiring a full-time CFO. Businesses can tap into this expertise when they need it most, whether it’s for specific projects like financial restructuring, mergers, and acquisitions, or ongoing financial planning and analysis. This flexibility allows companies to adjust the level of support based on their needs and budget.

3. Scalability and flexibility

Fractional CFOs are often brought in during specific financial events that require experienced oversight without the commitment of a full-time hire. This includes mergers and acquisitions, business carve-outs, audit preparation, and capital raises. In these situations, they help manage financial due diligence, organize documentation, and guide the process alongside internal teams and external advisors. Their ability to step in with focused support gives companies access to senior-level expertise exactly when it’s needed, without expanding the permanent finance team.

How to know when your business needs a fractional CFO service

While every business is unique, there are several universal indicators that may signal the need for a fractional CFO. Here are some key signs that your company could benefit from the expertise of a fractional CFO:

If managing the financial aspects of your business is becoming too time-consuming or difficult, it might be a good idea to hire a fractional CFO to handle these tasks efficiently and accurately.

You’re planning for growth or expansion

A strategic financial plan is crucial if your company is looking to expand, whether through new product launches, geographic growth, or mergers and acquisitions. A fractional CFO can help build a growth strategy that aligns with your financial capabilities, ensuring that your business has the resources it needs to scale effectively. They can also advise on securing funding, managing new investments, and assessing the risks associated with expansion.

You’re facing a major financial transition

Whether it’s preparing for a fundraising round, navigating a significant investment opportunity, or dealing with a merger or acquisition, major financial transitions require specialized expertise. Fractional CFOs are highly experienced in managing complex financial transactions and can provide the strategic guidance needed to navigate these transitions smoothly.

You’re implementing a large-scale IT or ERP system

Major technology projects, such as enterprise resource planning (ERP) system implementations, can have a significant financial impact. A fractional CFO can help evaluate total cost of ownership, monitor budgets, assess return on investment, and ensure financial controls are in place throughout the project. Their involvement helps avoid overspending, aligns the project with business goals, and ensures that financial risks are identified and managed from the start.

Financial reporting is inconsistent or inaccurate:

If your business lacks accurate financial reports or struggles to keep up with regular financial statements, this can lead to poor decision-making. A fractional CFO can implement a more rigorous financial reporting system, providing clear, accurate, and timely financial statements. This will help you make informed business decisions based on reliable financial data, which is essential for staying on track and meeting your business objectives.

You lack a dedicated financial team

Small and medium-sized businesses often start without a dedicated financial department, and as a result, financial tasks may fall to the general staff or the business owner. However, as the company grows, having a dedicated financial expert becomes essential. If you find that your team is stretched thin or financial decisions are being made without specialized knowledge, hiring a fractional CFO can provide the expertise needed to manage financial operations effectively.

How to hire a fractional CFO: A step-by-step guide

Step 1: Define your goals and choose the right engagement model

Start by identifying what you want to achieve, such as improved financial forecasting, fundraising preparation, cost control, or long-term strategic planning. Once those needs are clear, select the best engagement structure for your situation. Hourly or short-term contracts work for advisory or one-off projects, while monthly retainers or project-based fees suit more involved, ongoing work. The key is to focus on specific outcomes, not just generic financial tasks.

Pro tip: Be clear and results-oriented when defining your goals. This helps attract candidates with the right experience and mindset from the start.

Step 2: Identify and assess the right candidate

Look for a CFO with relevant industry experience and the flexibility to work in fast-moving or lean environments. Use reliable networks or recruitment firms to reach strong candidates, then assess both technical capabilities and strategic mindset. Practical, scenario-based questions, such as how they’ve handled financial downturns, funding rounds, or system overhauls, will help you evaluate real-world problem-solving and cultural fit. It’s more important that they can execute in your context than whether they’ve worked at large companies.

Pro tip: Don’t just screen for financial expertise. Look for strong communication skills and the ability to work cross-functionally, especially in startup or growth-stage settings.

Step 3: Validate through a trial and integrate effectively

Before making a long-term commitment, consider starting with a small project or trial period to test compatibility and performance. If successful, proceed with structured onboarding. Even for part-time roles, the CFO should have access to financial systems, key stakeholders, and strategic priorities. Treating them as a partner, not just a contractor, will maximize their impact from the start.

Pro tip: Use the trial period to align on KPIs, decision-making style, and communication cadence. It’s a low-risk way to test long-term fit.

Cost of fractional CFO services

When hiring a fractional CFO, it is also important to consider the cost structure that best fits your company’s needs. Rates can vary based on factors such as the CFO’s expertise, the complexity of your financial operations, and the nature of the engagement. While this model is generally more affordable than employing a full-time executive, aligning the pricing approach with your goals and budget is key. Many providers offer flexible or customized arrangements to suit different business scenarios.

The table below outlines common cost structures for fractional CFO services, based on data from financial consulting firms, recruitment platforms, and 2024–2025 industry benchmarks:

Partnering with the right recruitment agency can make this entire process more efficient and effective. Agencies like DevsData LLC provide access to pre-vetted candidates, deep industry insights, and tailored search strategies, helping companies avoid costly hiring missteps and expedite the time-to-hire process for critical roles, such as fractional CFOs.

How DevsData LLC supports businesses with fractional CFO services

Website: www.devsdata.com
Team size: ~60 employees
Founded: 2016
Headquarters: Brooklyn, NY, and Warsaw, Poland

DevsData LLC is a trusted partner in delivering fractional CFO services, helping businesses optimize their financial operations without the need for a full-time CFO. With over 8 years of experience and a global presence, including offices in Europe, North America, and Latin America, DevsData LLC offers extensive expertise to help companies align their financial strategies with market trends and business goals. This strategic support allows organizations to focus on growth while maintaining strong financial management.

With a 5/5 client satisfaction rating on Clutch and GoodFirms, DevsData LLC is known for delivering high-quality services that meet the unique needs of each client. The company combines deep industry knowledge with a data-driven methodology to offer both strategic consulting and customized fractional CFO services.

In addition, DevsData LLC specializes in recruiting top-tier CFOs. They leverage a database of over 65000 pre-screened professionals to quickly connect businesses with top-tier talent. Their team of 40 expert recruiters, based across Europe and the US, is highly regarded for their professionalism and exceptional communication skills. These qualities are crucial when conducting comprehensive 90-minute interviews, which allow for in-depth candidate assessments. Operating on a success-based fee model, DevsData LLC only charges when a successful placement is made, and they stand behind their work with a guarantee period. If a replacement is needed, it’s provided at no additional cost.

Successful projects

DevsData LLC’s hands-on experience with complex business challenges strengthens its ability to provide financial leadership where it matters most. For example:

• ZIM Logistics Services Ltd. – DevsData LLC supported ZIM’s digital transformation by recruiting 18 engineers and technical specialists with a strong understanding of financial workflows, including cost optimization tools and logistics budgeting systems. The challenge lay in finding tech talent with both software expertise and domain-specific knowledge of enterprise financial operations.
• Xapo Bank – DevsData LLC delivered a cross-functional hiring strategy for 14 key roles across software engineering, DevOps, and product management, tailored to the unique needs of a regulated fintech environment. The challenge was identifying specialists who could balance innovation with rigorous cost planning and compliance awareness, particularly vital in a high-growth, digital banking context.

Thanks to DevsData LLC’s targeted sourcing and structured evaluation process, both companies gained scalable, finance-conscious tech teams that accelerated product delivery, improved operational alignment, and brought greater predictability to budget planning and resource allocation.

To learn more about how DevsData LLC can assist with fractional CFO services and recruitment, contact them at general@devsdata.com or visit www.devsdata.com.

Conclusion

Navigating the financial complexities of a small or medium-sized business can be challenging, especially when balancing growth with the need for strategic financial guidance. Fractional CFO services provide a cost-effective, flexible solution for businesses looking to gain access to high-level financial expertise without the expense of a full-time executive. From cash flow management to strategic planning, fractional CFOs help companies stay on track, minimize risks, and maximize growth opportunities.

As more businesses are adopting this model, DevsData LLC has become a trusted partner for providing tailored fractional CFO services. With over 8 years of experience, a global presence, and a proven track record with large corporations and innovative startups, DevsData LLC is well-equipped to support your business through every financial challenge and growth phase.

DevsData LLC also provides Employer of Record (EoR) services, allowing businesses to hire and manage remote teams globally while ensuring compliance with local employment laws. Their Business Process Outsourcing (BPO) services further streamline operations, enabling companies to focus on their core, revenue-generating activities. With this comprehensive suite of services, DevsData LLC supports businesses in finding the right CFO and helps them achieve long-term success.