Fractional CFO Engagements: How They Are Structured and How They Change as You Scale Past $10M

Ask the executive to disclose other clients, especially competitors or counterparties. Agree on how confidential information is protected. Also consider whether the executive receives referral fees or commissions from software vendors, lenders or other parties, and require disclosure.

Continuity

What happens if the executive is ill, unavailable or leaves their firm? Ask about backup arrangements and whether others at the provider can step in. Keep copies of key documents in company systems.

System access for part-time executives

The executive will have access to sensitive data. Use individual accounts with multi-factor authentication, grant only the access needed and remove it promptly when the engagement ends. Ask for written confirmation of security practices. Follow privacy laws in handling personal information.

Professional standards

Confirm professional designations, if relevant, and the standards that apply. Ask about liability insurance and the limits of the executive's responsibility. Do not assume that a CFO title implies license to prepare tax returns or give legal advice.

Independence from external accountants and auditors

If the company is audited or reviewed, independence rules may limit the role of the firm that provides assurance. Discuss with your accountant before engaging the same firm for advisory work.

Typical deliverables by engagement stage

Concrete lists help set expectations.

Foundation stage

• Review of the chart of accounts and reporting.
• Monthly management package with commentary.
• Thirteen-week cash forecast.
• Annual budget.
• Basic KPI dashboard.
• Tax planning coordination with the external accountant.

Build stage

• Close calendar and checklist.
• Controls review and improvements.
• Lender package and covenant tracker.
• Departmental budgets and reports.
• Hiring plan with cost modelling.
• Selection and implementation of systems.

Scale stage

• Board reporting pack.
• Rolling forecast and scenario analysis.
• Capital structure and financing plan.
• Acquisition or expansion analysis.
• Pricing and margin analysis.
• Enterprise risk review.

Transition stage

• Succession and organization chart for finance.
• Full-time CFO job description and search support.
• Documentation handover.
• Exit or sale readiness work, if relevant.

The article on organization charts and finance roles discusses how finance structure changes as companies scale.

Preparing your company for a productive engagement

The best results come when the company is ready to use the executive's time well.

Decide your top three priorities

Before the first meeting, name the three problems that matter most. Examples: unreliable cash visibility, a lender requiring better reporting, rapid growth without a plan. Priorities guide the scope and focus the first months.